Return of the Big Three: Plan 2 from Outer Detroit

UPDATE: 1:50 pm EST: GM auto sales numbers just released. It is BRUTAL: US Sales for November PLUMMET down 41.3%, estimates called for drop of 39.3%…earlier FORD reported sales dropping 31% in November and Toyota reported a drop of 34% last month, despite 0% financing…yes the recession HAS hurt the BIG 3 beyond their business models and the drop in Toyota sales reflects this, give them a bridge loan and mess around with the fuel efficiency in January Congress..please….

The Big 3 are back to the Hill tomorrow for another shot at a bridge loan to get them through the end of the year. Auto sales figures are also released tomorrow. From the WSJ:

…Ford Motor Co. Chief Executive Alan Mulally plans to tell Congress he is accelerating the company’s development of hybrid and electric vehicles and is willing to cut his salary to $1 a year as part of a renewed push to win a federal bailout of the Big Three auto makers.

The efforts will be outlined in a recovery plan Ford is scheduled to deliver to Congress on Tuesday. (GM) and Chrysler LLC also are set to present plans of their own.

This sounds familiar, is this the Chuck Schumer plan, non-gas electric hybrid vehicle plan! Perhaps it will go something like this:


I predict this will be Congress’ reaction when told of the cash burn rate in November:

“That’s the most fantastic story I’ve ever heard!” – Congress Critters
“Every word of it is true”- BIG 3 CEOs
“That is the fantastic part of it!” -Congress Critters

All 3 companies have plans for submission tomorrow:

…GM’s presentation is expected to focus on efforts to lighten the company’s heavy debt and consolidate or sell several of its eight automotive brands, people familiar with the matter said. Chrysler is likely to emphasize its need for cash to stabilize the company and eventually to join an alliance with one or more foreign auto makers, a person close to Chrysler said….

The Big 3 will do a reprise of their testimony later in the week, this time one assumes sans corporate jet flights:

…The three chief executives are expected to appear Thursday before the Senate Banking Committee and Friday before the House Financial Services Committee. If Democratic leaders decide to move forward with assistance, the full Congress could be called back to Washington next week…

All joking aside for a moment, we’re hoping that a succesful outcome is reached and bridge financing is made available while there is such a large demand for Treasuries, we need this industry to survive for the benefit of the country.

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December 1, 2008. Tags: , , , , , , . Big 3, Film, Politics, Popular Culture, Sci Fi, Wall St. Comments off.

It’s Official: yes Virginia, there is a Recession

UPDATE 2: 4:31pm EST: DOW closed down 680 to 8149.09, NAS shed 137 to close at 1398 and S&P closed down 80 to 816.21. Have you seen the 10 YR?!?! HELLO! It was yielding 2.72 today, a record low yield last hit in 1955….see Rick Santelli from the heart of the action… and MUST-SEE Meredith Whitney’s forecast HERE

UPDATE 12:31pm EST: Markets are falling farther upon the news, DOW down 436.55 to 8392.49; NAS down 90.25 OUCH! to 1445.32 and S&P is down over 6% now, down 53 to 842.76….

Someone on the Bitter board, think it was LOM? wherever you are you owe me a steak dinner! Angus will do :0) NBER officially proclaims it s a recession (and has been for a year now as of December of 07)  WSJ has the details:

recession

The Business Cycle Dating Committee of the National Bureau of Economic Research met by conference call on Friday, November 28. The committee maintains a chronology of the beginning and ending dates (months and quarters) of U.S. recessions. The committee determined that a peak in economic activity occurred in the U.S. economy in December 2007. The peak marks the end of the expansion that began in November 2001 and the beginning of a recession. The expansion lasted 73 months; the previous expansion of the 1990s lasted 120 months.

Read the entire NBER statement here, they date it as having begun December 2007

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December 1, 2008. Tags: , , , , , , , . Economy, Finance, Wall St. 1 comment.

For Hillary! Thank You!! You’re the Top

You’re the Top!!!

Thank you Hillary!!

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December 1, 2008. Tags: , , , . Cabinet, Entertainment, Hillary Clinton, Obama Administration, Politics. Comments off.

Welcome Madame Secretary Hillary Rodham Clinton!!!

VIDEO UPDATE Hillary accepts

Senator Hillary Rodham Clinton

Senator Hillary Rodham Clinton

Senator Hillary Rodham Clinton of New York has accepted the role of Secretary of State for the incoming Administration. Other appointments include Gates staying on at DoD and Jones for NSA (who appeared with McCain on the campaign stump).

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December 1, 2008. Tags: , , , , , , . Cabinet, Healthcare, Hillary Clinton, Obama Administration, Politics. 1 comment.

Monday Markets Open

Construction Spending and the ISM Manufacturing number are out at 10:00am EST.. (my eyes are all for Hillary and the National Security Team being announced at 10:40am EST today in Chicago….)

via BloombergMonday: The ISM manufacturing report has already broken down to recessionary levels. Further declines along with declines in prices paid could raise concern over the depth of the manufacturing recession as well as the risk of deflation.

wallstreet

December 1, 2008. Tags: , , . Economy, Finance, Obama Administration, Politics, Wall St. Comments off.

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