Breakthrough: Big 3 Bridge Loan Deal Reached…developing….

Update 2: 4:00pm EST: The WH has issued a statement indicating there are questions about some provisions of the proposal they have received from Congressional Dems, this may not be a done deal yet. Pelosi will be covered by CSPAN in 10 mins here.

UPDATE: 3:22 pm EST: The WH announces they have the proposed bill from the House Democrats for 15 Billion; Nancy Pelosi is having a press conference at 4:15 pm EST to announce the package…

Barney Frank told CNBC’s Steve Liesman that he expects a deal to be reached by the end of the day on a bridge loan for the BIG 3. Frank indicated the funding should last them until March, when PEBO and one presumes his ‘car czar’ will have further plans for our manufacturing base…

This echoes what the WH said this morning. It seems as though we may have a deal, pending language for the WH to review and a vote..

WSJ reports..

…The package is expected to provide $15 billion in emergency loans, carved out of an already-existing $25 billion Department of Energy program initially designed to provide the firms with retooling loans…

(more…)

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December 8, 2008. Tags: , , , , , , , , , , , , , , , , , . Big 3, Cabinet, Economy, Finance, Foreclosures, Music, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 1 comment.

Monday Morning Market Action: Roll with it Baby….

Monday Morning and the markets are excited off the PEBO stimulus chat this weekend on infrastructure and possible mortgage modification work from the Treasury as well as news of a deal on a BIG 3 bridge loan…WH indicates deal could come as early as today..

…A White House spokeswoman says it is “very likely” that the Bush administration could reach a deal with Congress on Monday to get emergency aid to failing U.S. automakers.But she expressed concern that the White House has not seen a specific proposal from Democrats…

Chris Dodd D-CT, was making noises about Wagoner having to step down to do a deal last I heard, of course Wagoner isn’t the problem and that would be Kabuki Theater….let’s see how much of a sacrifice Pelosi wants to tap that Efficiency fund from the dept of energy for the bridge loan….

Are the market/economic fundamentals still whacked? Oh yes.

Is this pop sustainable? IMO? No, absolutely not.

Do some folks think we hit a bottom November 20th? Yes they do, I am not among them.

Should we bury our heads ostrich style? No! Make a trade!

Do what Stevie Winwood said, Roll with it Baby..

DOW up 284 to 8919, NAS up 46 to 1555 and S&P up 30 to 905..

December 8, 2008. Tags: , , , , , , , , , , , , , , , , , , , . Big 3, Finance, Foreclosures, Housing, Labor Department, Music, Obama Administration, Politics, Unemployment Statistics, Wall St. 1 comment.

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