When the Big 3 automaker hearing started I was surprised to find four at the table not three. Does not Big 3 mean three? Not in America where the Union (although they only add “$200″ or “$400″ to the cost of a vehicle – which is it?) seems to be permanently attached to the hips of the Big 3. 

Snake oil – he looks like a very nice snake oil salesman – don’t look into his eyes when he speaks . . .

And once again, the White House (maybe we should hang those three pawn shop balls at the entrance) is totally out of step with the public.

A slightly relieved United Auto Workers President Ron Gettelfinger said he’s happy that the White House appears poised to step in and rescue the beleaguered auto industry, although he accused GOP senators who blocked emergency loans of trying to ‘pierce the heart’ of organized labor.

Just give me a stake and mallet!

Thank goodness we have some in government willing to stand up and actually come up with a plan that will work not a gimme, gimme, gimme. Bob Corker’s (Rep. South Carolina) plan makes sense and is every bit what a bankruptcy court would probable mandate . . .

1. Give existing bondholders 30 cents on the dollar to help reduce their overall debt load.
2. Bring wages immediately in line with companies like Nissan and Volkswagen.
3. GM owes $24 billion to the United Auto Workers VEBA (Voluntary Employees Beneficiary Association) account. The union must agree to take half of that payment in GM stock.
4. The union must agree to do away with payments to workers who are still receiving almost full compensation up to four years after their jobs have ended.

Corker reminds us that U.S. companies under UAW contracts are paying rank-and-file employees an average of $70 to $74 an hour, including benefits, while competing “foreign” companies operating in the U.S. are paying $42 to $44 an hour.

This bail-out is not going to save the Big 3 and the Union. It is only going to postpone their filing for bankruptcy long enough for them to ask for more taxpayer money. It is not going to increase sales. It is not going to make their products more competitive. The bail-out is a hand-out.

Oh yes, please excuse my French . . . I took Latin in school (before it was a dead language).

If you are looking for a new Sprinter or camper built on the Sprinter chassis, the first half of 2009 might be the ideal time to buy. Not only will prices still be declining but interest rates should be very much in favor of the taxpayer. Of course, you will need a good down payment and have an excellent credit rating but if you got it, spend it.

Eventually, all the current government spending and promised government spending will come home to roost and many predict when the recession ends, we will see inflation or even hyper-inflation. Inflation means that Sprinter is going to double in price and interest will go from affordable to astronomical.

How much has the government spent so far? Bailoutsleuth.com details:

• $2T Emergency Fed Loans
• $700B TARP (designed to buy bad debt, the fund is transforming to whatever Paulson wants to buy)
• $300B Hope Now (the government’s attempt at mortgage bailouts)
• $200B Fannie/Freddie
• $140B Tax Breaks for Banks
• $110B: AIG ($40B of TARP money, plus $110B in other relief)

That’s close to $4.5 trillion and with the new government coming in January, it will only go up.

So start thinking about that new Sprinter. Good pricing, low interest and fuel costs and a vehicle that you can live in (if need be) and carry you away from all this to Canada or the beaches of Baja.

The three major automakers met with Congress today to press their case for additional bailout money. They were accompanied by the head of the Teamster’s Union.

Here’s a clue . . . dump the Teamster’s guy. He is one of the major reasons you are begging now.

The public doesn’t like these bailouts and we particularly will be really upset if bailout money goes in anyway (including dues) to the Teamsters. Unions are sooo 19th century.

We are tired of watching some person get paid $20-30 per hour for watching some robot tighten a nut. I’m tired of hearing stories of some third generation auto worker having a hard time. Third generation? Come on. Get out of town. There really are other opportunities in life. You should run for Congress!

Now that inspite of what the voters wanted, Congress has set up the bailout at 750 no, I think 850 billion dollars. Also while our back was turned they passed a 45 billion bail-out for the auto industry.

Done deal. All we can do now is hang on, watch and wait until we get the bill. So, in the interim, I suggest we go camping! Or, at least think about camping!

Get out there. Build that campfire. Reminisce about Grandpa.

. . . when Grandpa was young they didn’t have credit cards . . . to buy a home you needed at least 20% down and a job . . . Grandpa says Great Grandpa rode a horse from Salt Lake City to Provo (it took all day) so he could work during the harvest . . . no KOA’s so Grandpa camped about anywhere there was public land . . . time for marshmallows . . . most people camped in tents and slept under the stars . . . Grandpa saw Sputnik . . . what was that . . . he saw lots we don’t see . . . doctor’s made house calls . . . what was that . . . the movies were $0.35 and a movie called Psycho scared him to death . . . he worked in the laundry and bowling alley during school and at Frosty’s Market and at a truck stop . . . he had a paper route . . . what was that . . . his bike only had one gear . . . there was no Safeway or Walmart . . . he liked camping a lot . . . and apple cider pressed right in the field and marshmallows . . . he liked his burnt . . . he made hobo stew . . . what was that?

I bet you know who that “someone” is. You and me . . . the American taxpayer. The latest bailout (and that is exactly what it is) stops the system as it was correcting for misguided or dishonest mistakes. It is so in keeping with the past decade’s or so – we don’t want anyone to feel bad – everyone’s a winner philosophy. Are we going to buy back the properties that foreign investors bought? Everyone bought these damaged mortgages as an investment, not in the community, not in a family but an investment in the money. Every investment carries a statement like this, “Not FDIC insured, no bank guarantee, may lose value. There is no assurance that any fund/stock/bond, etc. will make money. The prices and investment returns will fluctuate with changes in the market. When you sell, you may get less than what you paid. You can lose money investing in any fund/stock/bond, etc .”  

It will not end the problem of Wall Street’s too cosy relationship with Washington, DC. It does not fix the accounting rules that are wrong. It does not fix the problem of loosie, goosie regulations and relaxed rules. It doesn’t differentiate between the greedy, the illegal or just the unlucky. More importantly, this will not end the problem in the housing market. The inventory is still there – just a new owner.

Everyone knew this problem was there. From lending money with 0 down to let short sellers get away with an actual crime. And all we have done is put off the problem – you can’t have a country that can legally carry a 11+ trillion dollar deficit. It won’t last. The house of cards will fall down.