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Auto Plan a Balancing Act for Obama

By Ben Pershing
Give the White House credit for one thing this morning -- at least it has demonstrated it can keep a secret. Until yesterday, President Obama's latest plan for dealing with the nation's beleaguered auto industry was kept almost completely under wraps. Now the full strategy has been unveiled, and it goes much further than most political or economic observers expected: GM CEO Rick Wagoner is out, along with most of his board. The company has two months to get its act together, while Chrysler has a month, and the government is now seriously entertaining the possibility of letting both slip into bankruptcy.

The stock market is expected to drop at the opening bell this morning in response, and Obama's bold move raises another question: What will this plan do to his political stock? After the AIG bonus debacle, it seems clear that the White House believes it needs to take a more hands-on role with companies receiving government bailout money (so hands-on, in this case, that the government will actually guarantee auto warranties). But is the president really willing to let two of the nation's three major automakers go belly-up on his watch? Back in September and again in February, polls found that strong majorities of Americans didn't want any more taxpayer money going to GM or Chrysler. Obama can comfort himself with those poll numbers if and when thousands more auto workers are on the news lining up for unemployment benefits.

Continue reading at Political Browser »

Posted at 8:22 AM ET on Mar 30, 2009  | Category:  The Rundown
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Previous: POTUS Events: Auto (Industry) Action | Next: Obama Says Automakers Not Moving 'Fast Enough'


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This move is designed to force the Union and suppliers, along with bond holders to give in to the pressure.

Pensions are said to be the base of the problem. The problem was that the government allowed General Motors [and for that matter most other companies NOT to fully fund their pension plans for decades. That means that you include both Republican and Democratic governments in the blame]. Had everyone followed the rules of commerce, pension plans would not be a problem now. I find it funny that the current government can justify bonuses at AIG because of contractual commitments made before their time, but they do not give workers who have invested their lives into these companies the same level of respect in relation to their pensions. These are contractual commitments too. No Mr. Obama is not to blame for them he inherited them, but if you want to see hypocrisy....here is one more example. We already knew this problem existed when we had to take on the airline pension plans, and yet nobody chooses to address the problem, except to steal from the workers what was promised to them when they committed their lives to these companies.
Hypocrisy is a many edged sword, but not to honor these long-term contractual commitments, and the lives that were dedicated to the capital gain of the companies is ULTIMATE hypocrisy.

Posted by: Tawodi | March 31, 2009 10:03 AM

Here's the Irony...

1. Most of You Own a Japanese Car or German Car.

2. Most of You Would Not Buy a Used GM or Chrysler Car.

3. Most of You will Jump at the Chance to Attack The Government or President Obama...

Yet had little or Nothing to say about George W. Bush ...

"Destroying this Country's Wealth ,as well as the Greedy, Corporate CEO's and Wall Street Heavies, who had and are still having a Ball with Your Money...

Note: You, the Tax Payer are the New Owners of ...

GM:USA and Chrysler:USA

Spare me, Your Moaning...

You Hypocrites.


Posted by: omaarsblade | March 30, 2009 6:52 PM

LOL!

Posted by: JakeD | March 30, 2009 12:41 PM

March 26th -

"The Washington Post recorded an operating loss of 25 million dollars last year and it quoted Post Co. chairman Donald Graham as saying in a letter to shareholders that he expects to lose "substantial money" in 2009."

So - you guys cut experienced journalists and kept...PERSHING?

Posted by: JohnQuimby | March 30, 2009 12:09 PM


WHILE THE GENERATED, MANUFACTURED ECONOMIC CRISIS CAPTURES THE HEADLINES...

...DEMOCRACY AND PERSONAL LIBERTY ARE POISONED AT THE GRASSROOTS.

***


INNOCENT BUT 'TARGETED.'


Google it.


YOU -- or someone close to you -- could be the next victim.


Unless Team Obama -- especially AG Holder, SecDef Gates, SecDHS Napolitano, SecTreas Geithner -- take down the draconian Bush-Cheney extrajudicial punishment network...


...an array of secret "programs of personal financial destruction" and government-funded vigilante "community stalking"...


...coupled with the proliferation of mind- and body-degrading "directed energy" microwave radiation weapons -- the Zyklon-B of a grassroots, government-enabled American Gestapo.


Attorney General Holder, you must act NOW to restore human and civil rights in America.


Before the naivete of liberals empowers the saboteurs and Dr. Strangeloves who say "No!" to change.


***


Where is the civil rights division investigation that victims have demanded?

Or is there "nothing to investigate" -- because the government already knows all about this?


http://NowPublic.com/scrivener

Posted by: scrivener50 | March 30, 2009 9:43 AM

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