This seems to be dominating today's news cycle. The President pretty much told GM and Chrysler they must figure out a business plan soon or risk falling into the bankruptcy abyss. GM has 60 days to reconfigure itself, while Chrysler has 30 days to merge with Fiat. When these loans were handed out at the end of last year I was curious to know when it would end. Now I know.
Here is the view from the Times, the Wall Street Journal, and for fun, the Detroit News.
This is a risk to Obama's political capital and mandate. He has the support of big labor and for GM and Chrysler to reogranize themselves, labor will need to make significant concessions. Something has to give though.
Monday, March 30, 2009
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Great articles! This issue presents the question of how much government intervention can one nation handle in economic issues. While he bailed out some companies and passed an economic stimulus plan, President Obama and the government cannot bail everyone out. Something must give and some must fail.
ReplyDeleteDoes anyone else think that the car companies should have been higher on the list of bailouts than other companies?
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