Class Warfare Continues

An illustration of the class warfare taking place now can be described as simply as this: People are being treated differently based on whether they shower before going to work or after.

The individuals who shower before were given a blank check -- no questions asked. While individuals who shower after work are still being asked to jump through hoops -- and there is no end in sight.

People who pushed paper around, who don't "make" anything, were given $700 Billion within days.

People who actually manufacture a product, and whose product line provides jobs for millions of Americans, have been waiting weeks on a response to their request for $15 Billion.

President Bush announced that he wouldn't let the auto industry fail on his watch, but if he doesn't stop "watching" and take action that is exactly what's going to happen.

The White House raised for the first time on Thursday the prospect of forcing General Motors and Chrysler into a managed bankruptcy as a solution to save the companies from financial collapse. [...]

“There’s an orderly way to do bankruptcies that provides for more of a soft landing,” Ms. Perino said. “I think that’s what we would be talking about. That would be one of the options.” [...]

These officials said the preferred solution would be to force a restructuring of the industry outside of bankruptcy court, extracting concessions that would make the companies more cost-competitive with foreign automakers.

In return, the Treasury would tap the financial rescue fund, called the Troubled Asset Relief Program, to make loans to the companies.

After a week of talks between the automakers and the Treasury Department over the terms of a possible bailout, Ms. Perino on Thursday said, “we’re very close.”

Yeah, as soon as they get the UAW to disband, watch the money flow!

What the White House appears to be envisaging is a package deal of concessions — and an injection of money from the TARP, the $700 billion financial bailout fund — to keep credit flowing for G.M. and Chrysler.

What concessions did the banking industry make?

This has to be the most comical paragraph in the entire report:

“The autos obviously are very fragile,” he said. He added that he was concerned about what President-elect Barack Obama would face on Jan. 20. “I believe that good policy is not to dump him a major catastrophe in his first day of office,” he said.

I'm reminded of the SNL Weekend Update segments where Seth and Amy would just keep repeating the word "Really???" . . . Is Bush serious? REALLY??

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Chrysler shuts down all production for month

Hey Sen. Bob Corker ... do you and Sen. McConnell really want to be responsible for bringing down the auto industry? Then get off your ass and FIX IT!

No one is questioning there are problems in the industry that need to be addressed, but let's compare how the auto industry and banking industry have been treated.

When they initially requested $34 billion, auto makers and the union were asked to jump through numerous hoops, yet you didn't ask the financial institutions for a plan before giving them $700 billion!

And what are the banks doing with all the money we gave them, because they are certainly not extending credit to people who want to buy cars.

Citing a credit crisis and dwindling sales, Chrysler LLC on Wednesday said it would shut down all of its manufacturing operations from the end of this week for at least a month. [...]

Chrysler said its dealers were getting car shoppers into showrooms but losing between 20 percent and 25 percent of those potential sales because of the lack of consumer financing for new car purchases.

"As a result of the financial crisis, the automotive market remains depressed due to the continued lack of consumer credit for potential buyers," the automaker said in a statement.

So what did we get for our $700 billion? I'd really like to know.

Look Who Made The List

And here's why.

For 30 years my father worked at a General Motors plant in Anderson, Indiana. He once said: "If this factory ever closes it's because the whole country is in serious trouble." Well Daddy ... you were right!

The economy is in the crapper. A lot of families are sweating it out right now, wondering if they will even have jobs in 2009. The automobile industry's reach into our economy is enormous -- if the Big Three fail, it won't just be auto workers that suffer.

Senate Republicans know this and see the bailout as an opportunity to finally bust one of the biggest unions in the country. There are a lot of reasons the auto industry is in trouble, but the union isn't one of them.

Union workers didn't decide which cars to manufacture, or how many to build -- the suits did. And while thousands of workers have already lost their jobs, executives have had to be forced to even CONSIDER giving up their BONUSES.

And don't forget the $700 Billion bailout to banks, who are now refusing to extend credit to auto makers or buyers. Sounds like a catch 22 to me.

US auto makers need to stop manufacturing huge gas-guzzling SUV's and re-tool to produce energy efficient cars. And they need to consider reducing the number of models they make, to become more competitive with foreign auto makers.

And Senators with foreign auto plants in their states need to start considering ALL Americans when they are voting. We are all in this boat together.

Democrats Agree on Bailout Deal

Is Big 3 Bailout a Class Issue

Imagine a United States where we stop making things? And why is it less valuable to make money by making things than to make money by moving money around on paper?

Taylor Marsh asks the same question in her post ECONOMY: Blue Collar v. White Collar Bailouts. In one section she asks: "... if you shower before work you got your bailout money easily. If you shower after work you had to beg for it."

I think that CEO's of both the banking and automotive industry must be held accountable for their actions. And none of the CEO's or senior management should personally profit from taxpayer bailouts.

And finally, I do think it could be the straw that breaks the camel's back of our economy if the automotive industry fails. Congress has a lot of work to do over the holidays.