Yesterday Mukesh wrote about the Wall St. Bailout vs. the Detroit Bailout (we got some really great and insightful comments on that post as well), and perusing the financial news today has revealed to me that the two bailouts may be more closely aligned than we thought: according to CNN, "The Bush administration said Friday that it will consider using the money set aside to help banks and Wall Street to rescue the auto industry."
My question is this: if the $700 billion can be re-allocated like that to help out the automakers, exactly how much surplus wiggle room is there in the bailout? Did the Fed just add an additional $100 billion of "just in case" money when they asked for that figure? Were they thinking "Well, we really only need $600 billion, but let's tell them we need $700 billion in case something unforseen comes up"?
Do the people in charge of the bailout money have any kind of concrete plan, or are they just throwing money around in the hopes that something will stick and the economy will magically jump-start?
Friday, December 12, 2008
Wall Street Bailout Now Targeted at Big 3?
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General Motors had offered buyouts to all of its 74,000 U.S. hourly employees. [5] Those workers could have elected to take a lump-sum payment of $45,000 or $62,500, depending on their job description, and retire with full benefits. [6]
Republican Sen. George V. Voinovich of Ohio, a strong bailout supporter, said the UAW was willing to make the cuts - but not until 2011.
http://nomedals.blogspot.com
is were citations are posted
GM had around 180,000 workers a year ago, and I am guessing that number has dropped severly...so offering a buy out for 74,000 is decent. Ford offered buyouts to 54,000 workers out of a quarter of a million.
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