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U. S. auto bailout tip of iceberg, analysts warn

Posted By admin On November 26, 2008 @ 9:57 am In Money Watch | Comments Disabled

FINANCIAL POST [1]
Wednesday, November 26, 2008

The tens of billions of U. S. taxpayer dollars being asked for by Detroit could be the tip of the iceberg, analysts at JPMorgan said yesterday.

With Congress preparing to hand struggling automakers General Motors Corp., Ford Motor Co. and Chrysler LLC US$25-billion in loans, JPMorgan analysts said any emergency cash would just be a lifeline until Barack Obama’s administration takes over in January.

Mr. Obama’s economic team would be put to work quickly, tasked with crafting a second, more comprehensive bailout package involving concessions from creditors and labour in what would amount to a sweeping restructuring of the Big Three.

(ARTICLE CONTINUES BELOW)

U. S. auto bailout tip of iceberg, analysts warn 161008pptv2 [2]

Structural costs would be a primary target under any Washington-brokered overhaul, JPMorgan said, with concession from creditors and the United Auto Workers “inevitable.”

The so-called “shared sacrifice scenario” would take months to negotiate, analysts said, likely equating to further injections of operating capital for Detroit. What all of this means for Canada, which has already shed more than 10,700 auto-manufacturing jobs this year, is uncertain.

FULL STORY CLICK HERE [1]


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URLs in this post:

[1] FINANCIAL POST: http://www.financialpost.com/story.html?id=995169

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] The Great Italian Auto Bailout — Courtesy of U.S. Taxpayers: http://www.prisonplanet.com/the-great-italian-auto-bailout-courtesy-of-u-s-taxpayers.html

[4] House prices ‘will fall further 25% in 2009′, warn analysts: http://www.prisonplanet.com/house-prices-will-fall-further-25-in-2009-warn-analysts.html

[5] U.S. Lays Down Terms for Auto Bailout: http://www.prisonplanet.com/us-lays-down-terms-for-auto-bailout.html

[6] Greg Palast: The Romney’s Extorted Millions from Auto Bailout: http://www.prisonplanet.com/greg-palast-the-romneys-extorted-millions-from-auto-bailout.html

[7] Senate to take up auto bailout bill on Monday: http://www.prisonplanet.com/senate-to-take-up-auto-bailout-bill-on-monday.html

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