washingtonpost.com - 12/12/2008
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Without a Deal, Carmakers Face Bankruptcy Threat Washington Post Staff Writer Friday, December 12, 2008; Page A01
online.wsj.com - 12/12/2008
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Auto Bailout Back on Track... Not
EconomPic —
UPDATE... "pre-mature" reporting on my part (hat tip Naked Capitalism). Apparently there will be no deal:
From the Washington Post:
An eleventh-hour effort to salvage a proposed $14 billion rescue plan for the auto industry collapsed tonight as Republicans and Democrats failed to agree on the timing of deep wage cuts for union workers, killing the legislative plan and threatening America's carmakers with bankruptcy.
"We're not going to get to the finish. That's just the way it is. There too much difference between the two sides," ...
Auto Bailout Compromise Fails
naked capitalism —
We had doubted the earlier Bloomberg report claiming a deal had been cinched, since an hour later, there was no corroborating report. So now a rescue falls to Paulson. From the Washington Post: An eleventh-hour effort to salvage a proposed $14 billion rescue plan for the auto industry collapsed tonight as Republicans and Democrats failed to agree on the timing of deep wage cuts for union workers, killing the legislative plan and threatening America's carmakers with bankruptcy. "We're not going to get to the finish. That's just ...
Institutional Aspects of a Bailing Out Santa
MV=PQ: A Resource for Economic Educators —
... on this blog referred to a humorous piece about bailing out Santa. But the piece got me thinking about some interesting segues to discuss some the role of institutions (rules) in economic decision-making. And, to be fair, I was further spurred by this morning's news about the failure of the auto bailout. The Santa Bailout is an opening to discuss at least three things that relate to institutions and bailouts. ...
Friday morning links
The Mess That Greenspan Made —
TOP STORIES Auto Bailout Talks Collapse as Senate Deadlocks Over Wages - Washington Post UAW president hopes Washington will help industry - AP Madoff Confessed $50 Billion Fraud Before FBI Arrest - Bloomberg Bank of America to Cut 30,000 to 35,000 Positions - Bloomberg Heroes and Zeros - CNN/Money Auto bailout ABCs - CNN/Money The Great Rescue Plan: ‘It Doesn’t Exist!’ - NewsWeek Driving continues to decline as gas prices drop - AP MARKETS/INVESTING Crude ...
Just Take It from the TARP
EconomistMom.com —
... With the Big Three assistance bill failing in the Senate last night, it seems the only hope for federal aid to the automakers before the end of the year is for the Administration to take some of the Treasury “TARP” money for it. Apparently the Bush Administration is more seriously considering ...
Related Content
Let's Hope the Auto Bailout Has Failed for Good
thestalwart.com 12/12/2008 — The fact that US auto companies weren't willing to reach parity with the wages of their japanese competitors was outrageous. For this stalwart at least its a relief that this bailout did not pass, and the markets' negative reaction is really short ...
Changes in money wages
marginalrevolution.com 12/3/2008 — And what Keynes had to say then is as valid as ever: under
depression-type conditions, with short-term interest rates near zero,
there’s no reason to think that lower wages for all workers — as opposed to lower wages for a particular group of workers ...
Senate Abandons Auto Bailout Bid
nytimes.com 12/12/2008 — WASHINGTON The Senate on Thursday night abandoned efforts to fashion a government rescue of the American automobile industry, as Senate Republicans refused to support a bill endorsed by the White House and Congressional Democrats. The failure to ...
Auto Bailout Negotiations Fail in Senate, Reid Says (Update2)
bloomberg.com 12/12/2008 — Senate negotiations for a U.S. automaker bailout plan collapsed, in a blow to General Motors Corp. and Chrysler LLC, which may run out of cash early next year.
“It’s over with,” Majority Leader Harry Reid said on the Senate floor in Washington. “I ...
Wages and employment, again
krugman.blogs.nytimes.com 12/25/2008 — Just a quick question for those who think that FDR prolonged the Great Depression by preventing a fall in nominal wages: what would be the benefits, right now, if the United States were to implement a Latvian program and cut everyone's wages by, say, ...
Immigration & wages: more evidence
stumblingandmumbling.typepad.com 11/4/2008 — Does immigration cut wages? Here’s some new evidence. Stephen Nickell and Jumana Saleheen estimate that a five percentage point rise in the proportion of immigrants working in a particular occupation leads to a fall in wages in that ...
Even more on nominal wages
krugman.blogs.nytimes.com 12/4/2008 — A few more notes on the did-FDR-prolong-the-Depression front:
1. Gauti Eggertsson has an interesting paper arguing that NIRA policies, by reducing the expected rate of deflation, were actually expansionary.
2. There have been a lot of responses to my ...
Auto Bailout Update
baselinescenario.com 12/10/2008 — I admit - I have auto bailout fatigue. But given the amount of virtual ink that has been spilled on this topic here, I think I owe you a place where you can express your thoughts on the current plan.
The Times says we are close to a vote, although ...
$14B auto bailout dies in Senate - Yahoo! News
news.yahoo.com 12/12/2008 — WASHINGTON A bailout-weary Congress killed a $14 billion package to aid struggling U.S. automakers Thursday night after a partisan dispute over union wage cuts derailed a last-ditch effort to revive the emergency aid before year's end. Republicans, ...
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