Auto Industry Promises: Can We Trust Them?
December 3, 2008 11:00 am
The headlines are all a bustle over the drama that will likely unfold this week when the Beggars of Detroit come to visit the Interrogators of D.C. Perhaps the most concerning part of this bailout is that the facts keep changing.The latest reports show that the original $2 billion monthly burn rate estimate for GM has increased to $5 billion per month. It is frightening to learn now that the estimate is already outdated. In fact, MSNBC is reporting today that if General Motors (GM) is to survive 2008, they will need an initial $4 Billion and another estimated, $18 Billion in total U.S. assistance.
In what appears to be a virtual checkmate, the auto companies are making a show of their proposal by complying with the politically correct and the outcrys of all Americans to win over billions of dollars of funding. It has been made quite clear that most Americans do not want to give another cent to zombie companies that have a history of losing money in even the best economic times. But give we will. Let’s take a look at some of the latest news and read between the lines to figure out what is really going on.