Depression Watch Dec 4 2008

Dow Close (Wed)       8,591.69    172.60
Dow Clsoe (Thurs)         8,376.24      215.45 (-)
Oil (Wed)                    $46.79
Oil (Thurs)                         $43.85

The Big 3 were back on Capital Hill today - "hat-in-hand", playing the contrite popper. This after being chided for the last visit in their corporate jets! One question pops to mind, though --- What about Ghettofinger? (ya I know - Gettelfinger) are they assuming by his name that he is poor? The question missing from the Hill was, what are the Union exec's perks? Our are they expecting a big payout from their puppet, Chris Dodd? ("Read David Callaway on why Congress will say yes.")

Supporting Quotes

[1]
Big 3 car executives agree to take orders from Washington --- They said their companies are commited to fundamentally changing the way they do business. - MarketWatch

[2]
After sending more detailed restructuring plans to Congress earlier this week, top corporate executives from General Motors Corp., Ford Motor Co. and Chrysler LLC and the leader of the United Autoworkers union testified again to the committee Thursday about the companies' request for an urgent bailout totaling $34 billion.

[3]
Mark Zandi, chief economist for Moody's Economy.com, testified that the companies would need $75 billion to $125 billion over the next two years to avoid bankruptcy. He said allowing any of the Big 3 to fail would be "catastrophic."

[4]
 Dodd and Shelby said the Treasury had mismanaged the $700 billion financial bailout and has not protected the taxpayers' interests or required the banks to change the way they do business. Senators said stricter oversight would be essential in either an auto bailout or in disbursement of the second half of the $700 billion for the banks.

[5]
Instead of an oversight board, Congress should invest one person with oversight authority, said Sen. Charles Schumer, D-N.Y.

[6]
"We are willing to do our part," said Ron Gettelfinger, president of the United Auto Workers.

[7]
If the executives are persuasive enough during the two days of hearings this week, the House and Senate could schedule a vote next week. Passage in the House seems likely, but the vote in the Senate could be nail-biter, with approval by 60 of 100 senators needed. Read David Callaway on why Congress will say yes.

[8]
They will be scolded, scapegoated and otherwise kicked about like barnyard animals, ridiculed for their beliefs by a group of high-minded politicians wearing fake wings and holding the keys to the Bailout Inn. Then they will be granted their wish for a federal rescue of some sort that will inject billions of dollars into their companies and save Christmas for the equity markets.

[9]
If the federal government can find hundreds of billions of dollars to rescue financial companies, it ought to be able to come up with a far smaller amount for the auto companies, said Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee.

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