The First Draft: Tuesday, Dec 2

December 2, 2008

Today’s the deadline for the Big Three auto makers to present their recovery plan proposals to Congress in order to get a $25 billion bailout.

All eyes will be on Capitol Hill to see the reaction of top lawmakers after the plans are in place. GM, Ford and Chrysler hope to convince lawmakers to approve the $25 billion in low-cost loans to help them survive the current downturn.  The deadline comes as auto companies are due to release their November sales figures, which are expected to be low.

We all knew the economy had been in a slump, but stocks tumbled around the world after confirmation that the United States had entered recession in December 2007. The confirmation by the U.S. arbiter of recession plus a warning from Federal Reserve Chairman Ben Bernanke triggered a sell-off on Wall Street which in turn sparked a domino-effect around the world.

Overseas the yen rallied to a five-week high against the dollar due in part to shaky stock markets.  Stocks in the U.S. were pegged to recover a bit on Tuesday, in part because of hopes for an auto industry bailout.

The economy will be on the minds of President-elect Barack Obama and Vice President-elect Joe Biden as they take part in a meeting in Philadelphia of the National Governors Association.

Obama and Biden will make comments at the beginning of the meeting then it is closed to the media. But they are expected to talk about ideas of how to fix the economy. Included will be discussions on how to improve infrastructure in the United States and how to work together on boosting the economy. 

Just when you thought the longest election in U.S. history was over — we have another vote, in Georgia. Voters will go to the polls for a runoff election between Republican incumbent Saxby Chambliss and Democrat Jim Martin. Chambliss is expected to win, which would mean Democrats would not be able to reach a 60-seat “super majority” that would enable them to pass legislation virtually at will.

REUTERS/Rebecca Cook (Auto workers at Ford plant)
REUTERS/Tami Chappell (Georgia Sen. Saxby Chambliss at rally)

7 comments

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Just wanted to wish Chambliss good luck in today’s election, and let him know that the prayers of many are with him today.

Posted by Jordan | Report as abusive

With all due respect Jordan, is not all of humanity and it’s plight deserving of prayer?

Posted by Anubis | Report as abusive

i wonder if the ceo of ford is going to get stock or some other type of payment later to cover his salary.also what about the people below him are their salarys going to be reduced.or is this just another bs attempt to screw the people

Posted by frank | Report as abusive

We’re the ones not buying cars. What do we want to happen? Personally, I’d like to yell stop talking about how long it takes to develop and apply what’s been developed. How many engineers are employed still ‘developing’ the internal combustion engine? Why? I don’t want another one, unless it uses water. That does require a ceramic engine to last more than about twenty thousand miles, but if you’ve got an old junker, there are kits on the net for $300. I’d rather pay for a battery change, exchange for a charged one, than buy gasoline at the corner station. The owner wouldn’t mind that either, if the electricity was generated on a wind farm up on the mesa.

Posted by Sharon | Report as abusive

American Auto Mfg Bailout. If you are going to use the American Tax dollars to save your business, then you should be required to import the jobs back to the country bailing you out! Or, go ask the governments in the coutries you have plants and exported jobs to bail you out.

Posted by Mstr 2U | Report as abusive

Anubis, by saying that I pray for one person specifically does not automatically mean that I have excluded all else from my prayers. Some of us are capable of multi-tasking.

Posted by Jordan | Report as abusive

Its a shame that the finance companies aren’t subject to the same amount of scrutiny as the auto companies when they come asking for bailout money. Its obvious who has the better lobbyists. Republicans know too that Detroit is the last bastion of Unions too, as they have declared war on Unionism since Ronald Reagan. This means that if they withold money, and let the domestic car companies go bankrupt it will break the backs of whats left of worker rights in this country. Then your cars, if they get made here at all, will be put together by low wage unskilled labor, illegal aliens, and temporary workers with no health insurance.

Posted by Rick Cain | Report as abusive