Southern GOP Senators Could Push Country into Depression

[BeatleBoot]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aq2JHRpdTeW8&refer=worldwide


GM, Chrysler Bankruptcies Would Cause Turmoil for U.S. Economy

Dec. 12 (Bloomberg) -- A bankruptcy filing by General Motors Corp. or Chrysler LLC might send the U.S. economy into chaos within weeks if it led to a shutdown at the companies.

Industry experts and economists say the automakers would close plants, fire tens of thousands of workers and cut production. That would cause many of their suppliers to collapse, triggering more job losses, straining the cities and states where the car and parts companies operate, as well as federal safety-net programs.

It would also deliver another psychological blow to consumers and a major shock to Main Street following the crises on Wall Street.

“The auto industry is a key element in the economy,” said Bob Schnorbus, chief economist at J.D. Power & Associates in Troy, Michigan. “Anything that disrupts it is going to slow the economy down more than we have already seen.”

Economists say it’s difficult to estimate the full impact, given the large number of possible scenarios. The outcome hinges on which companies filed for bankruptcy and when, and whether they would be able to continue building cars and trucks while in reorganization -- assuming they don’t go into liquidation.

“It would be unprecedented,” says Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut. “So it’s hard to say exactly what would happen.”

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[Taverner]

1. Tomorrow will be Black Monday

[MUAD_DIB]

3. Strange how Friday wasn't.

[BeatleBoot]

5. Black Monday's usually don't happen on Fridays

It would be a first.

[MUAD_DIB]

8. I think you understood me.

[BeatleBoot]

14. Understood.

[Veritas_et_Aequitas]

6. Investors were riding on Bush/Paulson's hinting of using TARP money on the Big 3

I don't think we'll have another "black" weekday yet... but I'd bet there's a significant drop in the Dow.

[wartrace]

7. Lately EVERY day is black.

We are in a serious downturn unlike most people alive today have ever seen. This downturn will be one for the history books.

[BeatleBoot]

12. And we can stamp Senator Richard "Dick" Shelby's Name as his Seal of Approval

[wartrace]

17. I apologise for my outlook but I have had a feeling of impending doom for months.

I think we are beyond the point that government intervention can "fix" what we are going to suffer. I realize they got us into it but getting out will take time & suffering. The ironic thing is there are 535 people who have no worries in the world despite having a hand in creating the problem.

[Taverner]

20. Expect things will happen

And they will happen swift

No critter has ever sat by when its own extinction happened

[wartrace]

2. We are headed for a depression regardless of the auto companies survival.

Certainly the failure of these companies will accelerate it, they won't be the cause. The auto companies are bankrupt. The economy of the entire world, built on easy credit is headed for depression. It is the fault of a credit bubble that has burst.

We can loan these companies money but it won't help them sell product.

[FrenchieCat]

4. What I detest is how these GOP types keep saying the Bail Out won't work...

Same folks who knew Deregulation was a good thing that would work.

Why anyone is buying their bullshit is a mystery to me! :eyes:

[wartrace]

15. I have my doubts that it will do anything but delay the inevitable.

WHEN will people start buying vehicles again? The only way for these companies to survive is when the consumer regains the ability & confidence to make a large purchase. Right now I debate whether or not to buy a newspaper let alone anything that will cost a years salary or better.

[leftofthedial]

9. they don't care either.

if it harmed unions and the middle class in any way, they'd destroy the whole world.

[Condem]

10. Would someone explain to me.

Why are we attempting to bail out Chrysler LLC? They are owned by Cerebus who, according to all reports, are quite well off financially. Am I missing something here?

[stillcool]

18. I wish I knew how corporate law..

works..especially when a corporation is multi-national. One subsidiary can go bankrupt..like Dresser Industries did with Halliburton, without affecting the whole.

[dixiegrrrrl]

19. odds are good Cerebus is the one needing the bailout

and it's financial "good" is just ink on paper.
Also, the Big 3 hae taken zillions of worker's retirement and had a sort of banking program that workers put money into.
Not a penny will go back to workers no matter what happens.

From the news jsut breaking about hedge funds, it looks like all sorts of companies crammed as much money as they could into these funds, and lost it all.

[INdemo]

11. After the bill failed in Congress Bush offered Tarp funds

and it seemed like it was nearly settled between the Democrats and the White House that the Big Three would get some relief..Now..something has happen here because as I read this article it seems that the Repukes have gotten to Bush and now he is having second thoughts or least he is attaching the same terms that Corker wanted..concessions and more concessions from the UAW..Yep the Repuke Senators got to him..Read this article very carefully and I think its easy to read between the lines whats going on.I didn't think the Republican Senators would let Bush get by with this..After the bill failed it just seemed like it was "In your face fellow Republicans" ..They got to him.....

http://news.yahoo.com/s/ap/meltdown_autos;_ylt=A0LEapUMkkVJamUAD1Gs0NUE

[Double T]

13. rethugs like the 'end times' scenario and they're going to make sure.........

BO has little or nothing to start his presidency with. I hope the voters remember these SOBs when it comes time for their elections.

[BeatleBoot]

16. Reminds me of Bush, the Smarter, sending troops into Somalia as a Lame Duck

To screw with President-Elect Willian Jefferson Clinton.