Auto maker rescue called dead PDF Print E-mail
Written by Stumo   
Friday, 12 December 2008

By some measures over one trillion dollars in cash and backstop pledges have been thrown at the financial industry.  It does not look like it did much good, but its hard to tell how much bad was avoided.

A $15B rescue plan for GM and Chrysler (Ford says it doesn't need it) was passed by the House and supported by Senate Democrats.  But Republicans in the Senate are not supporting the bill.  Negotiations broke down.  Reid calls the bill "dead." Dems blame the Republicans.  Republicans blame the United Auto Workers.

The White House supports the legislation, and said it may use the financial bailout money for the $14B package if the Senate does not act.

This crash looks like a singular event.  More than another recession.  We've hollowed out our economy with stupid trade policy to the point where we simply don't have folks working to make and grow things.  We just buy stuff.  And our credit cards don't work anymore.

What do we call this singular event?  The Great Depression II?  The Great Recession?  One article discusses the lack of a brand name, but does not solve it.

Perhaps the "hollowed-out-economy collapse" or "the deregulatory recession" or "the free market wacko crash."  Or the "we-can't-build-an-economy-on-mere-paper-trading debacle."  It's a good think I don't make a living doing branding.

Trackback(0)
Comments (1)add
feedSubscribe to this comment's feed
0
President, Finishes Ltd, Colorado Springs
written by Frank Shannon , December 13, 2008
As a life-long Republican, I hate to admit this but I have come to this: If the subject is about the economy or trade and the Bush administration is for it -- I oppose it - if they are against it- I support it! That said, a loan to help these stuggling companies seems in our nations best interests but must be tied to some form of forced restructuring. After all, a part of this problem has been brought on by failed US tax and trade policies which have damaged all American based producers including Detroit.
report abuse
vote down
vote up
Votes: +0
Write comment
smaller | bigger

busy
 
< Prev   Next >
[ Back ]

Related Articles

In the news

Here is a video of CPA member Zach Mottl on the Business News Network in Canada.  The issue is Buy America in the stimulus legislation, and the unfair trade practices of our trading partners.