Let the Bailouts Begin

lowecur

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Sep 14, 2003
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Well, our Big Three Automakers are now looking for low interest loans to the tune of up to $50B so they can transform their existing facilities (Truck, SUV, Auto) to the more competitive hybrid and PHEV platforms of the future. Credit Markets are dead, and there isn't an investment firm, bank, or international auto mfg'r in the world dumb enough to believe they can succeed.....except you guessed it....our politicians, riding the backs of the USA taxpayer.

It looks like Fannie and Freddie will be nationalized in the next 30-60 days, thus sticking us taxpayers with another bailout that will be huge. The Feds will probably let Lehman and possibly another large Wall St Bank either merge or disappear. Then you could see a major Commercial Bank sell it's profitable parts and then just disappear (maybe Citi).

Well just where does this leave the airlines? You can rest assured that a couple of biggies will be lobbying Congress for room at the trough in the not too distant future. Look for Congress to either let them go under or open up the good ol USA for foreign takeovers.

:pimp:​
http://www.latimes.com/business/la-fi-autoblog23-2008aug23,0,7610189.story
 

Two Feathers

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The US treasury has to be printing dollars so fast that all machines are red-lining. I wonder what would happen to the "value" off the dollar if oil was unpegged from it. My guess would be a significant crash.
 

BIGGOAT

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I am not in favor of gov't bailouts. No company is too big to fail so Chrysler would be a good start. Some of its assets like Jeep might be worth something. What was Cerberus thinking? GM still has some assets and cash but F is mortgaged to the hilt are they not? Bailout Fannie and Freddie with shareholder equity...past performance is no guarantee of future results rrrright? Agreed, Citi is too big buts parts are definitely worth a lot,still the thought of no C is weird. Again, negative on gov't bailouts and I feel the same about opening our markets to foreign takeovers of US airlines. Less capacity will help the overall industry therefore someone needs to go.

Goat
 

atpcliff

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Hi!

The disconnect of the US dollar from oil is one of the reasons for the Iraq invasion by Cheney and company. They were worried that Hussein/Iran and maybe eventually OPEC would start selling oil in Euros, which would/will decimate the dollar.

cliff
YIP
 

Marko Ramius

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Nov 25, 2001
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If all of this goes down, what will be funny will be the political spin when the fallout occurs. If Obama wins, it will be used an example of how he made big government bigger costing us all even when all of this would occur before he took office. If McCain wins, it'll be something he was supposedly handed by a Democratic Congress even though many of the ideas come from a Republican administration and many are bi-partisan. If it actually works.........everyone's head will explode because we Americans are far too cynical for such!
 
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