Pelosi Calls for `Emergency' Aid to U.S. Automakers
House Speaker Nancy Pelosi said she wants ``immediate action'' to give automakers additional aid ... The failure of ``one or more of the major American automobile manufacturers'' would have a ``devastating impact on our economy,'' Pelosi said in a statement ...Thurgy: What Pelosi is really saying is that a failure of GM would result in about $1 Trillion in credit default swaps being triggered, which would crush the banks in a heartbeat. If people thought the Lehman default settlement was reason to worry, you a'int seen nothing yet. In my opinion, this is the reason GM can't be allowed to fail. Let's have a gander at their performance over the last few years:
- Third-Quarter 2008: -$2.5 billion
- Second-Quarter 2008: -$15.5 billion
- First-Quarter 2008: -$3.3 billion
- Fourth-Quarter 2007: -$722 million
- Third-Quarter 2007: -$39 billion
- Second-Quarter 2007: $891 million
- First-Quarter 2007: $62 million
- Fourth-Quarter 2006: $950 million
- Third-Quarter 2006: -$115 million
- Second-Quarter 2006: -$3.2 billion
- First-Quarter 2006: $152 million
- Fourth-Quarter 2005: -$8.6 billion
- Third-Quarter 2005: -$1.6 billion
- Second-Quarter 2005: -$286 million
- First-Quarter 2005: -$1.1 billion
The argument for a bailout is to save jobs and tax revenue from GM. Umm, what revenue? However, if they did file for bankruptcy, this does not mean the lights are turned off and everyone loses their job. But clearly this company has been ran into the ground for quite a while. Why throw good money after bad?
