This little piggie wants $3 billion more
I’m shocked, shocked. Failing auto maker Chrysler needs more of our money to stay afloat. And they need it now. On top of that, Chrysler Financial is negotiating a separate request for its own massive cash infusion a la the GMAC deal.
And on top of that, the automakers are still grubbing for $25 billion from the Energy Department.
Oink, oink, oink:
Chrysler LLC is seeking $3 billion in additional government aid and its finance arm is in advanced talks with the U.S. Treasury to obtain a multi-billion cash infusion that could be finalized by Friday, officials said.
Chrysler is the only one among Detroit’s Big Three automakers seeking immediate additional aid. General Motors Corp. said it had no plans to seek more aid beyond the $13.4 billion the U.S. Treasury Department is loaning it from the $700 billion Wall Street rescue fund, known as the Troubled Asset Relief Program, or TARP…
The Bush administration is working to complete action on financing help for Chrysler Financial LLC before it leaves office on Jan. 20. A government official involved in the talks said it would be less than the $6 billion package GMAC LLC received.
“We’re very hopeful that (with) continued support from the Treasury and access to the TARP funds for Chrysler Financial that we’ll be able to provide additional retail support,” Nardelli said. “Our hope is we would get that resolved within a week or so.”
Chrysler Financial’s request is separate from Chrysler’s request for $3 billion, Chrysler spokeswoman Shawn Morgan said.
Nardelli declined to say how much Chrysler Financial was seeking but said he hoped “it would provide the kind of support for us in a similar fashion that GMAC was able to provide to GM.”
After receiving its TARP money, GMAC announced new financing deals for customers and dropped its credit requirement for loans from a score of 700 to 621.
GM CEO Rick Wagoner called the government’s decision to aid GMAC “a huge plus.” GM owns 49 percent of the finance company. Cerberus Capital Management LP, also Chrysler majority owner, holds the other 51 percent. “We are going to see some very significant changes in GMAC’s ability to fund both wholesale and retail (lending),” Wagoner said. Those loans will be “on a more cost competitive basis. … Frankly, over time it’s going to be a strategic advantage for us.”
Neel Kashkari, the assistant Treasury secretary who heads the TARP program, last week explained why it was important for the government help GMAC. “The finance companies serve as the lifeblood of the automakers,” he said. “We knew that our program would need to address the short-term needs of the auto finance companies as well.”
Detroit’s automakers also are seeking loans from a $25 billion Energy Department retooling program to help modernize factories to build more fuel-efficient models.
If it’s Monday, it’s time to play Squealing for Dollars.
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3 billion more. Oh why not, its not like anyone gives a damn about balancing the books in Washington DC anymore. Seriously Michelle, all this banging your head is only going to hurt your head and damage your wall.
Our country is collapsing from within.
There has never been a country this deeply in debt that hasn’t either gone bankrupt OR created hyperinflation followed by bankruptcy. This country has spent its way into bankruptcy but the people just haven’t figured that out yet. obama is PROMISING trillion dollar deficits. obama will probably oversee the first bankruptcy of the USA. Barring drastic action obama will never take.
If the USA doesn’t fall to marxism in the next 4 years, I’ll be very surprised.
Oh, how I can’t wait for the Big Mac to cost $25.00 (say June ‘09?).
Hyperinflation is on the way!!!!!
Are you kidding? Once the spoiled kids of this generation understand that they will be losing out, there will be rioting in to streets!!! This country is heading for a very dark place unless something changes and fast.
The counterpoint to that is that my mortgage will be 130.00 in todays money.
SOOEY! SOOEY! SOO-SOO-SOOEY!
And when they get the money, will they rub it in taxpayers’ face with another thanks for your money, suckers! ad buy?
Sonofdy,
Perhaps, but you won’t be able to afford the utilities, food or supplies to keep you in your home (unless you live in an inner city, then government grants will be available).
Not worried, this socialist government will force employers to maintain above average wages for all.
You think I am kidding but wait….
If GMAC had stayed with car loans things might be better – instead they went hell bent for the sub-prime mortgage loans and now we are paying the price.
I think we are on the same page…with Government as the savior, what do we need religion for?
People who need government help to survive are easy to control. Think about that for a second.
Nobody has stopped long enough to realize that yhis is money that does not even exist at this point. In other words this is pure fanatasy. Massive inflation is virtually guaranteed. Good thing the One is predicting didaster himself – now he can only improve his stock. Pardon the pun. Remember that Sarah Palin is an unqualified dolt…. The unqualified, the ignorant amateur here is Barack Obama. I don’t believe enough handlers exist to get this bantamweight up to speed for anything, much less war and a sick economy. I really believe the little man will end up cowering under a bed. I hope that is not the case, nevertheless, he appears to lack the right stuff to be a real leader.
In reality, the easiest and smartest thing for these diletentes to do is absolutely nothing. Then they would come out smelling like roses, at least to the press. Even an economy as Democrat-crippled as ours can heal itself given time and the elimination of government tampering. Thinking people would know the truth and would not care just so long as the Democrats cease bleeding the American people for their own greedy ends.
Actually, the first bankruptcy for the U.S.A. was during Nixon’s first term. In 1968, the Senate was considering the removal of the last 5% in gold backing for Federal Reserve Notes. Irwin A. Schiff testified that 10 things would happen if the gold backing was removed. All the others testifying just tut-tutted away his concerns. The Senate removed the gold backing.
In the early 70’s, Nixon had to devalue the dollar; he changed the price of gold from $35 per ounce, to $38 then to $42.22 per ounce. That is bankruptcy; when you settle with your creditors for less than what they originally intended. After that, all of Schiff’s other predictions came true. Nixon removed any link to gold and let the dollar float. That led directly to the inflation of the late 70’s and it’s where we are today.
BTW, the price of gold is not is $400 per ounce or whatever the going rate is. The official rate is $42.22 per ounce.
How long did that take? I said on the day they got the first round of money that they’d be back for more. It was faster than I expected.
This country, our country, is completely screwed. The politicians bailing them out are pathetic. Those running the business are pathetic. The UAW is pathetic. We are screwed.
Who’da thunk that the Jimmy Carter admin would be considered the “Good Ole Days”?
Where can I buy it for that? I define bankruptcy as the inability of government to pay even the intrest on the debt.
It’s interesting because this is the epitome of modern “liberalism” (in both parties). During the campaigns you hear about how they oppose business practices like the high interest short-term payday loans that get people “hooked” (in the sense that they’re borrowing to spend money that they don’t have and won’t typically have it the next paycheck- but some people probably).
Then you look at the automaker bailouts- what are we doing here? It’s like the short-term payday loans without any expectation of being paid back. And the interest- that’ll be on our kids’ tab. We’re “lending” them money they can’t pay back, and are hooked on the Cash-carry (aka Kashkari) Corporate Payday loans.
Like the people who failed to meet a budget and spent money they didn’t have, the automakers failed and won’t be able to break out of this.
The bankruptcies must come at some point and then we can move onto the real 800 lb gorilla: the unemployment and legacy costs (i.e. pensions/benefits). The ugly truth is that’s what we’re paying for, but somehow they can’t face that truth.
We survived the loss of the Packard and the Hudson.
Why not a Big 2?
Don’t forget the DeSoto!
And the DeLorean, even if final assembly was in Ulster.
You can’t. $400 per ounce is the speculative value or numismatic value. $42.22 per ounce is the offical value.
If you want to buy an ounce of gold and only want to pay the official price, the seller will just find someone that will pay the higher price.
A U.S citizen put a load of gold on a commercial carrier and it crashed in the ocean; no chance of recovery. He sued for the price he paid, which was the speculative value. The final court decision was that the official value was $42.22 per ounce. So, tough luck.
Why would they NOT want to wait until next Tuesday for this? What do they think will happen when Obama gets into office, that will mean anything less than an even larger handout? Something is just not right with the timing of this.
On January 12th, 2009 at 11:21 am, granite said:
Don’t forget the DeSoto!
I remember them. The DeSoto was a Chrysler product.
More PT Cruisers, more, more…
Get your gold for when dollars are worthless.
There’s an interesting speculation here. Suppose the Chinese stop accepting debt from us, and ask us to pay our debts off in gold? The US Gov would then decide it makes more sense to re-value the official price of gold to say $1500 an ounce . Better yet $3000 an ounce…
Far fetched? Yeah, about as likely as forking over trillions of dollars to bankrupt companies.
I’m hoping enough people detest these companies and the UAW enough to refuse to buy their products. I’m looking forward to NOT buying their cars this year.
I need to get off the GM mailing list.
I’m never buying an American car again.
Some nice American made cars to buy that will put money into an American worker’s pocket. Toyota, Mercedes, Nissan – depends on the model. But the leadership is in Japan, since apparently no leaders exist in Detroit.
All this begging of the Big 3 CEO’s in Washington is unseemly. Let’s spare everyone the drama, & just move the printing presses to Detroit. Instead of portraits of Jackson, Grant, or Franklin, the CEO’s could just put their own likeness on the bills. On the back, they could use the picture from the Monopoly game that shows the guy with empty pockets turned out of his pants.
So will I, that is the goal after all, and very few Americans seem to be ready to stand in the way of that goal.
I have considered lately that they may expand acorn and create other election controls to insure the ‘Ones’ election in 2012 and then make the formal move to socialism after that. Too many republicans (rinos) are dropping to their knees in fear.
I keep hearing the media (Fox) reporting (fawning?) about how “smooth” the transition is between administrations…the 2 admins are barely distinguishable at this moment, if you ask me.
I agree that free elections in this country may no longer be possible.
UAW Protests Detroit Auto Show to protest concessions the union has to make as part of the bailout. Another reason to never buy an American car.