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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Obama administration kills Pontiac today; AIG still unpunished

    By Nick, Section News
    Posted on Mon Apr 27, 2009 at 07:31:53 AM EST
    Tags: GM, Pontiac, Chrysler, Fiat, Big 3, Obama, Congress, bailout, unemployment, Chapter 11 (all tags)

    Update [2009-4-27 8:34:36 by Nick]: GM says 21,000 jobs are going die alongside Pontiac. Ouch.

    Big week, boys and girls.  Big week for Detroit, for Michigan and for hundreds of thousands of moms and dads and kids and... you get the idea.  With Big 3 restructuring deadlines lurking here and there dominos are already starting to fall in what will probably prove to be a few of the most important days in the history of Motor City.

    The bottom line question, after we cut through the filler and the nonsense and the periphery issues... the heart of the matter is whether or not metro Detroit will survive in any meaningful way.  Heading into the weekend there was a serious chance that Chrysler, LLC could be completely liquidated via Chapter 11 bankruptcy which would have put an estimated 300,000 Michiganders out of work.  Friday deadlines lurked in the distance and the company's would-be-"savior," Fiat, continued to insist on significant UAW concessions.

    And they got some.  THANK GOODNESS meets OUCH (probably).

    Read on...

    The Detroit News reports this morning that the two sides reached an accord late last night that should save a significant number of those jobs.  Unfortunately for thousands, it is already too late to save them all, though.  The News:

    Chrysler or GM could file for bankruptcy, even with concessions, in order to shed bad assets.

    "It was explained to us that Chrysler is getting ready for Chapter 11 filing," Ken Lewenza, president of the Canadian Auto Workers union, said... "The company could be split into the new company and the old company. The old company would be liquidated."

    With no small measure of uncertainty still lurking, and with UAW workers facing the prospect of making a concession or two, many continue to consider a buyout offer from the automaker but that option expires at the end of the day, according to the Ivory Tower.

    And over at GM, major changes begin this morning.  So long Grand Prix.  Buh-bye G6. MLive reports that Pontiac disappears today.  

    General Motors Corp. has announced GM Chief Executive Fritz Henderson will hold news conference at 9 a.m. Monday to present an update on GM's revised viability plan.

    That plan is likely to include the widely reported shutdown of the Pontiac brand and possible permanent plant closings. GM said in its Feb. 17 viability plan that it intended to close 14 factories over the next several years.

    The Obama administration rejected that plan.

    Because it didn't kill enough Michigan jobs.  And they're well within their right to reject it, too. </sarcasm>  I mean, the Obama administration runs GM these days.  They have their own guy in the CEO's office and their own leadership team in the board room.

    The company's former boss was the first scalp on the President's wall and Pontiac is going to be the second.  Still unclear how many UAW jobs will join it by the end of the week but if 14 plants were too few for DC Democrats they'll probably need to build an expansion onto the White House to create enough wall space.

    And the banks?  The bad players?  The rotten lenders and the crooked CEOs outside of Michigan who started this whole mess?  They should check their mailbox.  Ten will get you twenty they'll either find a fresh bailout check or an invitation to their local Congressional Democrat's next fundraiser.

    < Joseph Wurzelbacher to Join Petoskey Tea Party! | Monday in the Sphere: April 27 >

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    Plenty of Blame (none / 0) (#1)
    by Rougman on Mon Apr 27, 2009 at 09:35:16 AM EST
    While I agree wholeheartedly with your negative sentiment toward the perpetrators behind this whole credit mess, I think a lot of blame can be placed much closer to home.  After all, the foreign car makers, though cutting back and going leaner because of this credit crunch, are not even considering bankruptcy.  

    There is not a hard-line UAW member in this state, not a knee-jerk environmentalist pushing for CAFE standards and a moratorium of domestic drilling, and not a pandering politician beholden to those two groups that is not partially responsible for choking the golden goose to death.

    Plenty of blame to go around here.

    What a ride!  It was good while it lasted.  Sadly, the goose is dead and is no longer laying golden eggs.  Time for soup.  

    AIG? (none / 0) (#2)
    by KG One on Mon Apr 27, 2009 at 11:02:14 AM EST
    That's Amateur Night in Dixie!

    Where's the talk about going after the Fed?

    Shameless plug: Don't forget to contact you elected officials regarding H.R. 1207

    Contact the Congressional Switchboard at 1-877-851-6437 and contact House Financial Services Committee Members (Michigan Members: Reps. McCotter & Peters) along with your own elected officials.

    If you thought that AIG was bad...hoo boy are you in for a shock!

    Nationalism (none / 0) (#3)
    by asido on Mon Apr 27, 2009 at 09:07:41 PM EST
    The really scary news coming out of this whole thing is that essentially GM shareholders are about to be wiped out and the unholy alliance of the Federal Government and the UAW are about to take control of 90%+ of GM. But Obama isn't a socialist. Riiiiiigggghhhtttt....

    Arthur Sido


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