The First Draft: Friday, Nov. 5

December 5, 2008

Detroit CEOs drive their hybrid cars over to the House of Representatives for another serving of humble pie this morning. But it’s still not clear if they’ll get the $34 billion bailout they’re looking for, as several senators remained skeptical after yesterday’s testimony on that side of the Capitol. 
Testimony before the House Financial Services Committee begins at 9:30 a.m. 

The last outstanding Senate race may finally reach a resolution today, as Minnesota could complete its recount in the contest between incumbent Republican Norm Coleman and Democrat Al Franken. 

But any resolution will be preliminary: there are still about 6,000 ballots that have been challenged and will need further review.

The Supreme Court will announce what cases it will hear for the year. 
The Drug Enforcement Administration has built its own meth lab! The drug-fighting agency holds a ceremony to dedicate its new facility “that will enable DEA chemists to teach students how to synthesize controlled substances, and conduct research into illicit manufacturing methods.” No word on what they do with the final product. 
And somewhere over the Pacific, the Pentagon will test its “Star Wars” ballistic missile defense system this afternoon.

REUTERS/Joshua Roberts (Auto CEOs on Capitol Hill)

REUTERS/Eric Miller (Franken, Coleman at campaign appearances)


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Posted by Star Wars Nexus » The First Draft: Friday, Nov. 5 – Reuters Blogs | Report as abusive

The industry should NOT be bailed out. The companies should be sold to the employees with repayment over time to the Feds, who will finance the deal. Upper layer and top management should be fired. While this deal is taking place, the homes of the employees that are in foreclosure should be halted. When the deal is complete home financials should be rewritten to current apparaisals with the Lenders taking the differential as a writeoff. If the Lenders won’t cooperate pull their Business Permits. Further, wwhen the deal is complete, shareholders have the option of straight trading their stock for new shares in the employee held operation. Dealer population should be reduced to one half its current size over time. Current inventory held by dealers should be sold at half price with some of the remaining merchandise donated to people without transportation to get to work. Any losses, again, written off. The Government needs to take a hit for lousy leadership. So they get it on the tax side. In two years or less the industry will prosper. What’s required here is common sense and strong leadership, not lobbyists, lawyers and rudderless chief executives.

Posted by Andrew Franks | Report as abusive

Regarding the GM problem.

Could the government just buy unsold cars and other production, such as school buses, ambulances, fire trucks, and just give or sell them at a steep
discount to States and municipalities. At least the government would get something for its money and the country would benefit.

Also, since GM manufactures a great deal of military
equipment, the Defense Department could release contracts
early to give the company a financial boost.

Posted by ROBERT COHN | Report as abusive

Look Detroit has been messing up for years so why reward them for failure. If the Senate and the House wants to give them money then take it out of their pay. Dont use my money to reward failure. Dont take this bailout from my paycheck!! John

Posted by ginsengjohn | Report as abusive

Robert, no they shouldn’t. This would just give a green light to them to carry on producing vehicles in the same way and using the same business business model irrespective of reality i.e. the very thing that got them into this situation in the first place.

Posted by nick | Report as abusive