Friday, December 19, 2008
It looks like Uncle Sam is going to let GM and Chrysler off the hook temporarily by providing them $17.5 billion in loans until 31 March. This was a complete cop out because they didn't really put any teeth in to the Congressional oversight or force labor renegotiation's. They gave the car companies until the end of next year to renegotiate, which means we will have to keep feeding the beast all next year. The car companies have done all they could to the executives to during this last round of begging, but the white elephant in the room is the UAW and no one whats to shoot it. This is your government looking out for its best interests. The companies would have been better off in a structured bankruptcy that broke the UAW strangle hold, but instead we get to foot the bill for people that no longer work for a living and still collect a paycheck (job banks). The UAW says they are suspending the job bank practice, but nothing in writing means nothing.