Back At The Trough Again

As predicted, like clockwork, Chrysler and GM are begging for another bailout.

Chrysler asks govt for $5 billion more in loans

Chrysler LLC on Tuesday told the U.S. government it needs even more taxpayer money to survive. General Motors is expected to do the same. Acknowledging that industry conditions are worse than expected when it made the case in December for a government bailout, Chrysler requested an additional $5 billion in government loans. It originally said it would need $3 billion more. The company had previously received $4 billion from the Treasury Department.

GM needs up to $30 billion in aid to avoid failure

General Motors Corp (NYSE:GM – News) said on Tuesday it could need a total of up to $30 billion in U.S. government aid — more than doubling its original aid — and would run out of cash as soon as March without new federal funding.

The request for additional aid from the top U.S. automaker came in a restructuring plan GM submitted to U.S. officials on Tuesday.

The GM restructuring plan of more than 100 pages was posted on the U.S. Treasury Web site

See also:
Chrysler Restructuring Plan for Long-Term Viability
General Motors Corporation 2009 – 2014 Restructuring Plan

Chrysler has already received $4 billion and is now asking for an additional $5 billion after originally estimating that they would need $3 billion. GM has already received $13.4 billion and is now asking for $30 billion after originally estimating that they would need $18 billion.

So, both companies are still bleeding cash like they have a severed aorta and neither company met today’s deadline to obtain concessions from the recalcitrant UAW.

See also:
Chrysler, UAW make progress in talks-source
Source: GM, UAW closing in on concession deal

Will we let these obviously insolvent and unprofitable companies fail and proceed to Chapter 11 bankruptcy to reorganize like 99.9% of the other companies that find themselves in untenable economic positions? Hell no! It’s bailout mania season in Washington, expect the Bad Business Enabler Cavalry to ride your tax dollars to the rescue! Well, actually your tax dollars were all already spent a long time ago, so they’ll have to borrow or print the money and you or your children or grandchildren will just have to pay for it all later, with interest.

Will Obama stop the craziness? Hell no, Giddy Up!

Obama to appoint panel for auto recovery

It will take more than one “car czar” to help get the embattled U.S. auto industry back on track, President Barack Obama has decided.

Instead, his administration is establishing a presidential task force to direct the restructuring of General Motors Corp. and Chrysler LLC, a senior administration official said Sunday night.

Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers will oversee the across-the-government panel, the official said, speaking on the condition of anonymity because no announcement has been made.

So, assume the position and prepare to bend over again for the Detroit Duo and the UAW!

/you know, I can understand bailing out the major banks, because if the international banking system fails the entire global economy will crash overnight, however, if GM and Chrysler go into Chapter 11 bankruptcy reorganization, you’ll still be able to buy a car the next day

Geithner Swings, He Whiffs, You Lose

Does anyone in the Obama Administration know what the hell they’re doing? Are they all morons? After weeks of hype and a one day delay for dramatic effect, Treasury Secretary Tim Geithner stepped up to the plate to deliver a much anticipated explanation of his comprehensive financial-sector rescue package/Financial Stability Plan as to how the Government would stabilize the banking system and, most importantly, how they would deal with the toxic assets festering on banks’ balance sheets, the root of the problem. He whiffed like a six year old T-Ball player facing Nolan Ryan in his prime.

And what came out of his mouth? Well, WE DON”T REALLY HAVE A PLAN is what came out of his mouth. I mean WTF, you hype up a speech promising a comprehensive solution to the banking crisis and then you come out and basically say that you have no idea what to do? Needless to say, the markets were shocked, confused, annoyed, and definitely not happy. The DOW dropped 200 while Geithner was talking nonsense and right now is hovering around down 400. Congratulations Tim, you single-handedly wiped out billions of dollars of shareholder equity with one asinine half hour speech. If you had any decency, you’d resign your incompetent, tax cheating ass right now.

See also:
US Stocks Slide As Geithner Unveils Bank Plan; DJIA Off 208
Street Sours On Geithner Outline
Stock markets plunge after US bank plan announced
European markets fall on skepticism about U.S. financial plan
Bank stocks retreat on Treasury plan
Geithner plan wide in scope, short on detail
Geithner: From Indispensable to Indecipherable

/you should have listened to your mother Tim, if you don’t have anything good to say, don’t say anything at all!