Update: Rick Wagoner pushed out of GM….

Update: Monday 9:00am: Market futures down…Dow 187

TOTUS to announce Auto Plan at 11:00am EST…they let Bob Nardelli keep his job can you believe that? the WOTS is that Chrysler will be filing a prepackaged bankruptcy of some sort…Nardelli was the poster child for ceo pay when he left Home Depot after mere months with mondo millions and tanked that stock before Cerberus gave him the Chrysler gig…

It’s a Hard Knock Life Baby, make that JEEP shine like the top of the Chrysler Building!!!(or Nardellis head!), I wonder if someone will cover my JEEP warranty?!

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Wow!!! This man WAS GM the past few years, he was widely viewed as the leader of the Big 3, which isn’t really fiar since Ford’s Alan Mulally is the man who pulled a miracle and kept FORD out of this Pandora’s Box that Government Help has become…

So TOTUS is announcing Rattner’s Plan manyana, and Wagoner gets dumped on Sunday night? Oh man the bond holders must be screwed…which would mean American business is screwed IMO if they screw tr

he debt holders….breaking contracts and all…I mean who is in charge of GM now? Not Rattner surely..I said dont call me shirely….lol

Courtesy of voxpopulai:

Possibly the greatest of the Brill Building classics. Someone put this up awhile back but it disappeared, so here it is again. Robert Goulet was just goofing around but Steve Allen put down rock and roll every chance he could. Well, he’s gone now and Mary Weiss is still singing. So there.

CNBC:

General Motors Chairman and CEO Rick Wagoner is stepping down as head of the embattled automaker CNBC has learned Sunday.

Wagoner’s resignation comes as the company awaits president Barack Obama’s reports on efforts to save GM and Chrysler

It is unclear if Wagoner’s resignation is one of the stipulations for the federal government to lend billions more to GM. But sources close to the talks say tough conditions will be attached to any future aid.

President Obama will update the public on the Treasury Department’s next step in helping GM and Chrysler on Monday afternoon.

A senior White House official did not deny to CNBC that the Obama administration influenced Wagoner’s departure.

Asked if the administration forced him out, the senior official replied, “‘forced’ is a little strong.”

Wagoner has served as CEO since 2000. Under his leadership, GM has steadily lost market share in North America while becoming the dominant automaker in China, where it is currently number one


March 29, 2009. Tags: , , , , , , , , , , , , , , , , , , , . Big 3, Doo Wop, Economy, Entertainment, Motown, Music, Obama Administration, Politics, Popular Culture, Uncategorized, Wall St. 2 comments.

Breaking: WH: TOTUS will Announce Auto Plan Monday…

thehomer

CNBC Chyron; WH announcement: Auto Task Force winding down decisions to be made on aid, announcement to be made by TOTUS Monday

This is fascinating because the debt holders have been LOUDLY complaining they don’t want a cramdown when the union isn’t cramming down to the level Steve Rattner (head of TOTUS’ Auto Task Force) is announcing as a done deal left and right for two weeks..

Also GM has been publicly stating they do not need or want anymore government money, but Rattner has been floating the idea that GM needs billions, more than tens of billions more..

Mr. Rattner dismisses the idea that his team may not have enough auto expertise to tackle the job. “We are not trying to run car companies,” he says. He compares the work to what he and others have done in the private sector. “This is the type of investment decision that many of us on this team are used to making.”

…Mr. Bloom focused on minute aspects of the business strategy, and Mr. Rattner, on how the deal would be structured. People on the Fiat team came away thinking that the task force’s questions betrayed a limited understanding of the industry. “It’s fair to say we walked out of the meeting and were a little unsettled,” says one member of the Fiat team….

…The bondholders’ attorneys laid out the details of a plan to exchange debt for equity, which would reduce pressure on GM to repay the bondholders. As the lawyers walked through a litany of potential challenges, Messrs. Rattner and Bloom took notes, offering minimal commentary, according to people who attended the meeting. Since then, the bondholders committee has had little contact with the task force. Its lawyers say they were surprised two weeks later when Mr. Rattner publicly criticized them for not being flexible enough….

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March 27, 2009. Tags: , , , , , , , , , , , , , , . Big 3, Economy, Finance, Obama Administration, Politics, Wall St. Comments off.

Markets tank on uncertain future….GM & Chrysler futures dim as Obama drops ‘Czar’ model for French Revolution Model, ‘Committee on Public Safety’ next?

Well, we tanked right out of the gate, DOW down 245 now, breaking the November 20 bottom….we escaped the global damage yesterday as we were closed when Japan released the worst economic data in 35 years....

Japan’s economy, the second-largest in the world after that of the United States, shrank at an annual rate of 12.7% in the final three months of last year, the government said Monday. It was the biggest contraction since a surge in worldwide oil prices precipitated an economic crisis in 1974.

but we are in the thick of it today, GLD is up, and so is the US Dollar which is not supposed to happen, lol….in other headlines, Obama will sign the stimulus in Denver and the markets could care less, we want a financial plan for the banking system and a HOUSING plan

Arizona as the backdrop to announce his housing plan, Obama is choosing a state hit hard by foreclosures. In January, more than 4,500 homes in Arizona were repossessed, third highest in the nation, according to RealtyTrac, a company that collects foreclosure data. Last month, California ranked first.Obama has dropped hints about the outlines of his housing plan, estimated to cost from $50 billion to $100 billion. Speaking in Elkhart last week, he said he would push for a law that allows judges to rewrite the terms of a mortgage for homeowners who land in bankruptcy court.

Without such a law, people are being forced into “foreclosure who potentially would be better off, and the bank would be better off, and the community would be better off if they’re at least making some payments, but they’re not able to make all the payments necessary,” Obama said.

The BIG 3 are also in the minds of traders as Chrysler and GM prepare to present phase one of their feasibility plan to Team Obama. UAW walked away from talks this weekend when GM and Chrysler offered to fund the retirees with stock shares, methinks they know a government run bankruptcy is a-coming….

And I have to say now it looks like Team Obama has no one at the top calling the shots…

Truman said the buck stops here, the buck doesn’t seem to stop anyplace at Team Obama, every single issue has a TEAM a COMMITTEE, no one person calling the damn shots! We need a leader not a frakkin committee!!! Governing by committee is dangerous….

The mysterious and menacing figure of Maximillien Robespierre; "The government of liberty is the despotism of liberty against tyranny." Robespierre's legacy of "despotism" was not to bloom fully until the pogroms of the 20th century. Of course, Robespierre himself was guillotined during the Terror. (cr-Rich Geib)

"The government of liberty is the despotism of liberty against tyranny." Robespierre's legacy of "despotism" was not to bloom fully until the pogroms of the 20th century. Of course, Robespierre himself was guillotined during the Terror. (cr-Rich Geib)

From the wonderful blog of Rich Geib: Gresham’s law of political morality: the bad drives out the good as everyone becomes corrupted while political life becomes not unlike the Hobbesian war of all against all in “a perpetual and restless desire for power, that ceaseth only in death.”

Gibby describes the newest flip flop from a Car Czar to a Committee a la Robespierre, and who will  get a seat? Why the US Steel Workers Union Staffer!! BWAAAHAA!! Ahh man it is so terrifying you have to laugh!

thehomer

GM big executives are ‘retiring’ ahead of the blitz by Pelosi and Waxman:

Lutz departs– Mr. Lutz’s frank statements have also drawn attention. A few years ago he referred to some of GM’s makes as “dead brands,” and last year he called global warming a “crock of s — .”

General Motors Corp. product chief Robert Lutz will give up his post for an advisory role April 1 and retire at year’s end, concluding a chapter in his colorful, 46-year career in the car industry and signaling a shift in emphasis at GM.

Mr. Lutz, a former Marine pilot known for his blunt manner and a love of “muscle cars” brimming with horsepower, was brought to GM in 2001 to liven up its vehicles. He is credited with improving the look and feel of its passenger cars and pushing the development of the Chevrolet Volt, a battery-powered car GM aims to launch in 2010.

“It just seemed to be the right time,” Mr. Lutz, 76 years old, said by email Monday. “As they say, ‘My work here is [largely] done.’ The fun and excitement have become fairly rare commodities, and others are temperamentally better-suited to dealing with this increasingly regulation-dominated product future.”

Exactly ‘regulation dominated’ ie Der Kommissar Pelosi is in town….and she is heavily invested in Boone Pickens’ natural gas plan

General Motors Corp. said Wednesday that William E. Powell, North America vice president of industry-dealer affairs, will retire on March 1.

Powell, 61, began his career at the automaker in 1977 at the company’s Buick Motor Division in Flint, Mich., and moved through several sales assignments. He has been in charge of the company’s dealer development group and regional general manager of GM’s southeast region for vehicle sales.

and Sen Lugar, good buddy to Obama,  came out endorsing a GAS TAX just what American families need right now, but the leadership we have right now is all about the theme of green and not so much what American families can AFFORD to do right now, none of us are going out to buy a new green car I can tell ya that!

Another quote quite appropos from Rich’s page:

“Robespierre, with his cruel moral relativism,
embodied the cardinal sin of all revolution, the heartlessness of ideas.”

Paul Johnson “The Spectator”

February 17, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Big 3, Cabinet, CITI, Economy, Entertainment, Finance, Foreclosures, Housing, Music, Obama Administration, Politics, Popular Culture, TARP, Terrorism, Unemployment Statistics, Wall St. 2 comments.

DC Leaders to Big 3 NO DEAL…Levin faction wants vote

Second Congressional Bipartisan Conference-the Opposing Side!: Now Levin D-MI, Stabenow D-MI, Bond R-Mo, Voinovich R-OH Sherrod Brown D -OH..are announcing a bill ..they are pushing to have put to a vote to utilize funds from Energy allocation with many limitations that would allow the BIG 3 to get through the bridge to the next Administration.  Debbie Stabenow says this is a bipartisan agreement and she believes they would have the 60 votes needed if it were allowed to be put to a vote on the floor.Well we have a split ladies and gentlemen..if only we had some sort of leader who could bring people together….paging Camp Obama….

Congressional Leaders Conference earlier

FIRST PRESS QUESTION TO LEADERSHIP CONFERENCE: Isn’t Congress evading their responsibility by not taking action? DAMN STRAIGHT! Harry says “them flying in on jets doesn’t send a message we want them to get their act together..we are here to help those people keep those jobs …and yes we’re kicking can down the road..” WOW! Now Frank… says widespread dissatisfaction in country and Congress by failure of those we gave funds to (TARP) to use funds for what we intended. AHHH since Paulson bait n switched on TARP, now BIG 3 cant have money without a bunch of hoops being jumped thru first..

well many people clamored for this, let’s see the fallout..I think this is a very bad thing…to me this demonstrates Congress’ conviction that they have unlimited mandates and they are not going to move unless its all their way..or the highway, pardon the pun…they are wrapping it now..wow..

WOW UPDATE: Reid says they CANNOT find an agreement, despite valiant work of Levin D MI, he says they are giving auto companies another chance to make their case and submit thru Frank and Dodd, no later than Dec 2nd, a new plan, and hearings will be held that week on their proposal. They are prepared to come back into session Dec 8th to help auto industry but ONLY if plan gives Congress and American people the confidence the people’s money will be well served. He STRESSES at ANY TIME the Bush Administration or Paulson could use TARP to give the money the auto industry needs no action by Congress needed.

Pelosi associating herself with Reid’s remarks. WOW! “Accountability, Pelosi says, viability, a plan, until they show a plan we CANNOT SHOW THEM THE MONEY. That is where we are with this“…wow folks, just wow..markets steadily declining now, DOW turning down 124, NAS down 19 and S&P down 20 and change..wonder how the rank and file feel about their union dues going to these congressional wunderkind right about now…

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November 20, 2008. Tags: , , , , , , , , , . Big 3, Economy, Politics, TARP. 1 comment.

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