Today’s the day that the Big 3 automotive CEOs return to the Senate to beg for a bailout. For instance, GM is asking for $18 Billion, and, to show sincerity, the GM President drove his two other buddies from Michigan to DC in a hybrid Chevy Malibu. And he has joined them in saying he’d settle for a $1.00 salary this year (but has not mentioned any multi-million dollar bonuses or stock option plans.)

The $18 Billion is a problem that Michael Moore pointed out on the television last night, since GM’s share value is only $6 Billion … they are asking for 3 times what the company is worth.

As Moore says, if that is the financial situation then we are not bailing them out, we are buying the company… and if we do that, shouldn’t we be determining what they are going to build? Shouldn’t we be determining who they can and cannot lay off? Shouldn’t we function as owners and not suckers?

Harry Reid doesn’t think the votes are there in the Senate to approve this. I don’t know if this keeps Paulson from handing some of the Treasury’s $700 Billion to GM or Ford or Chrysler… or if he can legally.

The word is that if one of the Big 3 goes out of business it will trigger a move from recession to depression. Of this is true, we are set for a bumpy ride into the Obama Administration.

Under The LobsterScope

Comments are closed.