SubscribeGMAC is Giving Away Your Money
December 31, 2008
GMAC, the main source of auto loans for General Motors (GM), was recently approved as a bank holding company allowing them to access funds from the Federal government. Within days after the approval, taxpayers provided the lender with $6 billion of funds through the TARP in an effort to help stimulate auto sales. That could be helpful as during November sales were down a whopping 37%. What’s more, as record layoffs persist, vehicle sales are not seeing any chance of returning to normal levels anytime soon. Read more
Auto Industry Promises: Can We Trust Them?
December 3, 2008
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 It is frightening to learn now that the estimate is already outdated.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.
Audio: Andrew on NPR on Auto Bailout
November 12, 2008
Today I spoke about the problems and benefits of a Auto industry bailout on NPR’s Day to Day program. From NPR:
The auto industry has been lobbying the president, president-elect and Congress for a bailout package of their own. Proponents of such a bailout say, if the domestic auto industry fails, it will have devastating effects for the entire Midwest. Opponents say the government should let The Big Three fail.
First, Celeste Headlee reports why the auto industry is just too big to fail. Then Madeleine Brand talks to Andrew Horowitz, president of Horowitz & Company, about why he thinks bailing out Detroit is a bad idea.
Click HERE to listen ( I am start about 4 minutes in)
Video: Andrew on Fox Business - Union Busting
November 11, 2008
I was asked to discuss the impact of unions on the automotive industry. The lead-in was a touch harsh as host Stuart Varney came on strong, wrongly accusing me of believing that unions were the main cause of Detroit’s problems. I helped him better understand that while unions are a part of the problem, there is more to the story…
TDI Episode 70: The Auto Industry at a Crossroads
August 17, 2008
Guest: Professor Michael Greenberger follows up with the discussion on the Enron Loophole and how there is relief in sight. We last had him on when we were nearing a $145 barrel price for oil. Since then, we have noticed a significant drop…Why? He tells us and provides insight into the hearing oil problem we are about to see.
Since July 2001, Michael Greenberger has been a professor at the University of Maryland School of Law, where he teaches a course entitled “Futures, Options and Derivatives.”
Professor Greenberger was a partner for more than 20 years in the Washington, D.C. law firm of Shea & Gardner, where he served as lead litigation counsel before courts of law nationwide, including the United States Supreme Court.
In 1997, Professor Greenberger left private practice to become the Director of the Division of Trading and Markets at the Commodity Futures Trading Commission (CFTC).
LISTEN TO PODCAST NOW | LISTEN @ ZUNE - @ iTUNES
Here is that important list again that will give you insight into this oil sham…
- The London Loophole
- The Enron Loophole
- MSN Article - House Passes Bill to Reverse oil price increases
- Video: Greenberger Testifies
Andrew then provides a look into some possible starting points on how to fix the domestic auto industry. There are thousands of people that are relying on a change in order to ensure their pension and health benefits. While this may not be able solve all of the issues, maybe it is a opening discussion.
Stocks discussed in this episode: General Motors (GM) Ford (F) Proshares Ultra Oil & Gas (DUG) American Axle (AXL) Autonation (AN)
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