Tuesday, November 11, 2008

how do you solve a problem like detroit?

Barack Obama has asked de facto President George W. Bush to support a rescue plan for General Motors, Ford, and Chrysler, which are doing quite poorly. Analysts peg GM's future stock price at zero, and Daimler Benz, which owns about 20% of Chrysler, has priced that at zero value as well.

Again, the question - will a rescue make any fundamental difference to Detroit? Or will it just put the day of reckoning off for a few years?

Allan Sloan noted Detroit has a powerful hold over Washington - in addition to current employees, many of which will lose their job one way or another, lots of retirees rely on GM, Ford, and Chrysler for pensions and healthcare coverage. So it's tough to just say no...

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Anonymous Anonymous said...

Financial markets, airlines, car industry... they all hold JOBS over the government. You have to do something.

I thought the bailout for the big three wasn't really that big and that they're expected to put a decent % of it towards going green.

9:08 PM  

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