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Speaker Pelosi offers stronger public option than Sen. Reid's 'flex-pub'

Posted Oct 29th 2009 5:15PM by Joseph Lazzaro (RSS feed)
Filed under: Forecasts, Politics

Just call it a 'moderate public option.' Sort of. U.S. House Speaker Nancy Pelosi, D-California, Thursday unveiled a revised, $894 billion health care reform bill that would provide insurance to up to 36 million more Americans while cutting the budget deficit by $30 billion over 10 years.

The bill's key elements: subsidies offered to moderate-income Americans to buy insurance either from private carriers or a new, government-run program, an expansion of Medicaid to insure the poor, and an income tax increase on upper income Americans -- individuals earning more than $500,000 per year and couples earning more than $1 million.

Continue reading Speaker Pelosi offers stronger public option than Sen. Reid's 'flex-pub'

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

Posted Nov 24th 2008 3:49PM by Joseph Lazzaro (RSS feed)
Filed under: Industry, Ford Motor (F), General Motors (GM), Politics

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

GM or Ford bankruptcy 'is economically and psychologically unacceptable'

Posted Nov 13th 2008 10:30AM by Joseph Lazzaro (RSS feed)
Filed under: Industry, Ford Motor (F), General Motors (GM), Politics

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'

Virgin America enters U.S. airspace -- What does that mean for U.S. airlines?

Posted Jul 19th 2007 6:00PM by Kevin Shult (RSS feed)
Filed under: International markets, Bad news, Launches, Industry, Consumer experience, Competitive strategy, Southwest Airlines (LUV), US Airways Group (LCC), AMR Corp (AMR), UAL Corp (UAUA), JetBlue Airways (JBLU), Delta Air Lines (DAL)

As of today, there's a new airline in the skies: Virgin America. That's right folks: British Billionaire Richard Branson has expanded his Virgin Atlantic fleet across the pond. The new San Francisco-based start-up will use a fleet of Airbus A320's to fly two routes: San Francisco to J.F.K in New York and San Francisco to Los Angeles International.

While Virgin America will only open with those two routes, they plan on ramping its schedule fast. In the next three months, Virgin will add Las Vegas and Washington Dulles to the schedule and move up to a total 10 U.S. destinations a year from now. The fleet plans to service 30 destinations within the next five years.

Continue reading Virgin America enters U.S. airspace -- What does that mean for U.S. airlines?

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DJIA-9.6010,217.34
NASDAQ-8.262,145.80
S&P 500-3.061,090.02

Last updated: November 10, 2009: 12:10 PM

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