BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Speaker Pelosi to Big 3: Show us a viable plan, and we'll show you the money]]>http://www.bloggingstocks.com/2008/11/24/speaker-pelosi-to-big-3-show-us-a-viable-plan-and-well-show-y/http://www.bloggingstocks.com/2008/11/24/speaker-pelosi-to-big-3-show-us-a-viable-plan-and-well-show-y/http://www.bloggingstocks.com/2008/11/24/speaker-pelosi-to-big-3-show-us-a-viable-plan-and-well-show-y/#commentsFiled under: , , ,

What are likely to be Congress's performance conditions for any rescue package for Big Three auto manufacturers General Motors, Ford, and Chrysler?

First, it should be noted that many Americans oppose any auto maker rescue/bailout, and the stance contains a legitimate point: that underperforming private companies shouldn't be rewarded for operational errors.

Still, a stronger argument holds that a cessation of U.S. auto company operations would severely hurt an already weak U.S. economy - - with an unacceptable increase in unemployment, particularly in the Midwest U.S., and other negative economic ramifications. Hence, Congress is very likely to pass and either President Bush/President-elect Obama will sign a performance-based rescue package.

The plan's performance metrics are likely to include:
  • a credible, coherent plan for auto manufacturer viability and profitability;
  • wage, benefit, and payment sacrifices by all stake holders: management, unionized employees, suppliers, dealers, contractors, shareholders, and creditors, etc.;
  • the elimination of executive and management bonuses, if certain metrics are not me;
  • a next-generation vehicle platform that reduces U.S. dependence on oil and that radically increases fuel efficiency/miles per gallon;
  • debt-to-equity options, perhaps in the form of convertible bonds, that give the U.S. government the option of purchasing shares, should federal oversight officials choose to do so, to enable the government to share in any automaker's success;
  • senior debt status for any U.S. government loans;
  • full General Accounting Office access to auto maker financial records and business plans for the duration of the rescue package.

Continue reading Speaker Pelosi to Big 3: Show us a viable plan, and we'll show you the money

Speaker Pelosi to Big 3: Show us a viable plan, and we'll show you the money originally appeared on BloggingStocks on Mon, 24 Nov 2008 15:49:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutauto rescueChryslerCongressDemocratsFFordFrankGeneral MotorsGMinthenewsPelosiReidRepublicansMon, 24 Nov 2008 15:49:00 EST<![CDATA[GM or Ford bankruptcy 'is economically and psychologically unacceptable']]>http://www.bloggingstocks.com/2008/11/13/gm-or-ford-bankruptcy-is-economically-and-psychologically-unacc/http://www.bloggingstocks.com/2008/11/13/gm-or-ford-bankruptcy-is-economically-and-psychologically-unacc/http://www.bloggingstocks.com/2008/11/13/gm-or-ford-bankruptcy-is-economically-and-psychologically-unacc/#commentsFiled under: , , ,

Detroit's Big Three automakers are finding out assistance is a two-sided process.

President-elect Barack Obama is backing a plan in which U.S. automakers would receive $50 billion in federal aid in exchange for structural changes and oversight by an auto czar or board. An auto czar or board would be patterned after the bailout of Chrysler in 1979 or the City of New York in 1975.

During those two assistance / loan guarantee efforts, the U.S. Government ended up making money on the deals. The revamped Chrysler returned to profitability and actually led both General Motors and Ford in several vehicle categories in the ensuing decades. The streamlined, pro-business City of New York experienced an economic, civic, and cultural renaissance in the 1990s that was surpassed only by the 'Roaring 20s.'

Economist David H. Wang told BloggingStocks Thursday a bankruptcy by General Motors or Ford "is economically and psychologically unacceptable." If both filed for bankruptcy and operations were disrupted, "U.S. unemployment would soar over 10%" and the U.S. economy would incur into its deepest recession since the 1981-82 Reagan Administration recession, he said.

Continue reading GM or Ford bankruptcy 'is economically and psychologically unacceptable'

GM or Ford bankruptcy 'is economically and psychologically unacceptable' originally appeared on BloggingStocks on Thu, 13 Nov 2008 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Big ThreeBushChryslerfFordFrankGeneral MotorsgminthenewsObamaPelosiReidUAWThu, 13 Nov 2008 10:30:00 EST<![CDATA[U.S. Rep. Frank introduces FHA mortgage assistance plan]]>http://www.bloggingstocks.com/2008/03/13/u-s-rep-frank-introduces-fha-mortgage-assistance-plan/http://www.bloggingstocks.com/2008/03/13/u-s-rep-frank-introduces-fha-mortgage-assistance-plan/http://www.bloggingstocks.com/2008/03/13/u-s-rep-frank-introduces-fha-mortgage-assistance-plan/#commentsFiled under: , , ,

U.S. Rep. Barney Frank, D-Massachusetts and Chairman of the House Financial Services Committee, Thursday introduced legislation to enable the Federal Housing Administration to insure and guarantee mortgages that have been written down banks and other mortgage holders, Rep. Frank announced in a statement.

Rep. Frank's proposal would permit the FHA to provide up to $300 billion in loan guarantees which could potentially result in the refinance of 1-2 million at-risk mortgages, preventing foreclosures, "protecting neighborhoods and help stabilize the housing market."

Continue reading U.S. Rep. Frank introduces FHA mortgage assistance plan

U.S. Rep. Frank introduces FHA mortgage assistance plan originally appeared on BloggingStocks on Thu, 13 Mar 2008 17:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Barney FrankBernankeBushBush AdministrationCongresscredit crunchFederal Housing AdministrationFHAforeclosuresFrankhousinghousing sectorinterest ratesinthenewsmortgage ratesmortgagesPaulsonsuprime mortgagesU.S. TreasuryThu, 13 Mar 2008 17:00:00 EST<![CDATA[As home foreclosures rise, some in Congress eye FHA refinance plan]]>http://www.bloggingstocks.com/2008/02/27/as-home-foreclosures-rise-some-in-congress-eye-fha-refinance-pl/http://www.bloggingstocks.com/2008/02/27/as-home-foreclosures-rise-some-in-congress-eye-fha-refinance-pl/http://www.bloggingstocks.com/2008/02/27/as-home-foreclosures-rise-some-in-congress-eye-fha-refinance-pl/#commentsFiled under: , ,

With home foreclosures expected to increase in 2008 as the second wave of variable interest rate mortgages reset, an influential member of Congress is expected to introduce legislation that would enable the Federal Housing Administration to buy at-risk loans, enabling them to be refinanced and preventing homeowners from being foreclosed upon, The Financial Times reported Wednesday.

U.S. Congressman Barney Frank, D-Massachusetts and chairman of the House Financial Services Committee, is floating a $15 billion initiative that would authorize the FHA to buy as many as 1 million at-risk mortgages, The FT reported. Some loans, such as those for investment properties and vacation homes, would not be eligible for the program.

The overlooked FHA

Overlooked during the "Roaring 1990s" economic expansion and this decade's housing boom, the Federal Housing Administration is a Depression-era agency that insures loans made to borrowers with poor credit.

Continue reading As home foreclosures rise, some in Congress eye FHA refinance plan

As home foreclosures rise, some in Congress eye FHA refinance plan originally appeared on BloggingStocks on Wed, 27 Feb 2008 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Barney FrankBushFedFederal Housing AdministrationFHAforeclosuresFrankhousinghousing sectorinterest ratesmortgagesPresident Bushrecessionsubprime mortgagesTerm Auction FacilityU.S. CongressU.S. economyU.S. Federal ReserveU.S. TreasuryWed, 27 Feb 2008 16:40:00 EST