CSC,

Somebody has to be first at that too, you know.

.

Ah the tired and true "quick get too big to fail before we go BK" strategy.

tried* or maybe it is getting a little tired.

Bride of Frankenstein!

when is the helicopter drop scheduled? I thought those were usually 115pm est?

dinosaurs mating--
A failed survival view.

"market inefficiencies that each individual companies could not solve"

yeah, they simply dont get to print money to pay retirees.

Better have my 2006 PT Cruiser get its 24,000 mile checkup before CarMax gets closed!

GM should merge with Porsche !

Cerberus is friggn broke as a coke dealer -- this is retarded and they should just call this a Fed bailout, because, as God is my witness, these pirates have a bunch of synthetic playmoney backed a printing press connected to worthless paper. Now these fools suggest that worthless cars have future value and hence, if yah have a few bucks, maybe this a a hot deal that will make yah a bucket of dough -- BULLSHIT!

See also: Deflation: Making Sure "It" Doesn't Happen Here

http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm 

Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

Stupid Fed Gov. Gramley: these loans will all be paid back.

I live in Georgetown, Ky. home of a Toyota plant - workers there are NOT unionized. Don't know about the bennie package, but they employ around 7000 I think and provide a LARGE proportion of the local community revenue.

Cerberus is toast.
No way government money will bail them out.

Anonymous writes:
Cerberus is toast.
No way government money will bail them out.

Pshaw! They will own 100% of GMAC become a bank get cheap money and TARPed on GMAC crap loans. They'll make a fortune

Pshaw! They will own 100% of GMAC become a bank

Yup. No way a democratic administration allows an automaker too fail, even if a private equity firm is hiding behind it.

Good riddance to both GM AND Chrysler.

Who will buy Ford?

?? What just happened ??

Just applying a little lube before the announcement.

In The Carter Era, The Democrats held Chrysler accountable to loan terms, e.g, conditions, restrictions which linked taxpayer revenues to future terms of re-payment. That deal made taxpayers a few million, but the deal was based on tossing all the bums that ran Chrysler, out of the boardrooms and putting auditor-based accounting into the deal to hold the crooks responsible for their future performance -- to force positive engineering cahnges.

In The Bush Coup Republican Regime, we have socialism to simply bailout the pirates and to reward the boards and to engineer hidden agendas where no loan will be left behind -- and o loan will have terms or accountability, save for the fact that taxpayers will have to pay whatever cost it takes to bail out these corrupt fuckers!

I tend to like the old fashioned concept of accountability more so than The Bush method, where Treasury has unlimited funds for non-accountability! This is all Bullshit!

WTF?

mulling a commercial bank charter in order to access some of the $700 billion funds

I hope wal-mart becomes a bank, and then we can all just use Yuan's and screw the Continentals.

Also see Blue Backs: The Seventh Issue was the last but an Eighth Issue for $80,000,000 to pay the Arm was authorized by Congress at its last meeting on March 18, 1865. It was vetoed by President Davis who felt the 1864 issue was to replace older notes and reduce circulation and to authorize another issue would be accepted as a proof that there is no limit to the issue of Treasury notes.

Even without this issue, upwards of two billion dollars in Confederate currency of all issues was produced. The destruction of Columbia, S.C., Confederate printing headquarters, in February 1865, did not entirely stop the deluge. Some equipment was saved and transferred to Anderson, S.C. and Richmond. But by that time it was hardly worth the cost of printing.

Although there were attempts to make them so, Confederate Blue Backs were never legal tender. Worth 95 cents on the dollar in gold when first issued, Confederate currency dropped to 33 cents by 1863, and 1.6 cents by Appomatox (April 9, 1865). May 1, 1865 was the last active trading in Confederate notes at 1,200 for 1. It is of the highest order of patriotism when we observe that except for speculators, most Southerners continued to accept this money to the last. By way of comparison, the lowest point o the legal tender Greenbacks of the North was 39 cents on the dollar in gold, July 11, 1864.

FOMC day is always (usually) low volume until 2:15EST

What is up with MTH?

We need a bailout here too:

US Slowdown Affects Indian Apparel Manufacturers
http://www.tradingmarkets.com/.site/news/Stock%20News/1956597/

The dwindling apparel retail business in the US has started casting its shadow over India's garment manufacturing industry. Data released by the Office of Textiles and Apparel (OTEXA), US Department of Commerce, shows that total apparel imports from India dropped 4.8% in value terms for the year ending August 2008.

Two thoughts.

First, this deal is all about Rick Wagoner's ego and nothing else. There is no logical business case for GM and Chrysler to merge. Chrysler alone is destined to fail. Chrysler combined with GM is destined to fail. GM on its own has a fighting chance. But Wagoner knows he isn't the man to lead GM through this tough time, so he comes up with this merger to buy time, so the eventual failure comes on his successor's watch.

Second, it reminds me of the whole securitization fiasco; the idea that you can combine two pieces of crap and end up with something that isn't so crappy.

EHP,
If GM goes BK, won't we get another Lehman-style CDS mushroom cloud? That is the only even semi-legitimate reason for the Treasury backing this that I can think of.

50 it is

50 Basis Point cut

hmm. shall I sell my dxd

Going up???

Titanic and Brittanic...

Both at the bottom of the ocean.

Ciao
MS

Thanks All Fall for putting up Snow's name here as one of the most exemplary of those civil servants...doin us...even more spectacularly than Greenspan.

Just wondering EHP: Are you in Europe and do you have a day job?

I keep reading the "too big to fail" rationale (pro and con) being used to explain recent government economic "solutions."

Any possibility that after all of this is done, we are going to start seeing Ma Bell type breakups?

Having worked for a startup which was bought and sold by the three headed dog back in the M&A heyday I have to say I have immense satisfaction in watching them spiraling into the deleverage black hole.

Couldn't have happened to a nicer bunch of people.

this is all based on the theory that if you tie two stones together they float!

before we are through with this expect to see a number of state and local governments file for bankruptcy as a way of getting past their civil service union deals with regard to health care and pensions. I think we are on the verge of a taxpayer revolt- no more property taxes to pay off union pensions. Most of their pension plans were underfunded to start with and the big decline is not going to make that any easier. Stay away from GO and stick with good quality Revenue bonds even if they have an AMT bite

Having said that I am not anti union. I think unions play a useful role in countering corporate power if they act responsibly but not if all they are interested in cutting fancy deals for themselves at the expense of the future.