Did the White House fake out Gettlefinger? Get him to turn down a somewhat unattractive deal from Corker by signalling that they were ready to tide GM over, and then pull the deal? I don't know that bankruptcy will destroy the UAW, but they probably won't have a lot of members and money left to campaign for Democrats in 2010.
What remains to be seen is whether GM really can't make it to January 21st without a cash infusion, or whether that was just a negotiating tactic. I tend to think they meant it, but these sorts of pleas are usually exaggerated to get the best possible deal, so it's impossible to know.
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Nah, the White House isn't that clever. Though they may have that effect through incompetence, i.e., being unable to coordinate a bailout effort.
I had the exact same thought, which is good: two makes a conspiracy theory, but one is just crazy.
I am sure that GM meant it when they said that they could not survive until 21st January without government money. However, I am equally convinced that they did not know. For as long as I can remeber, no precise financial estimate from GM management has been worth the hot air it was delivered with.
Have I missed something? Is there breaking news that the government isn't going to bail GM out?
GM could certainly make it to January 21, but they may declare bankruptcy anyway- who really knows what is going to happen?
However, the Democrats are desperate to get this done with Bush's signature on it, otherwise they will have to do the bailout by themselves come January 21.
Megan,
What makes you think the Bush administration isn't going to bailout the automakers?
Simple explanation. The White House is seaking leverage with congress. There is very little money left in the first tranche of the TARP. The White House wants the second tranche released. Only if this happens will GM get anything. To give GM money out of what little is left in the first tranch would be foolish since the banks are still a mess.
Could Bush be trying to make sure the axe falls on GM during Obama's watch by giving temporary funding?
Surely the simplest explanation is that the Bush administration would prefer not to have to give TARP money to the automakers at all, and so they're going to stall a little and see what the absolute minimum really is. In a few days they will probably offer up the minimum amount necessary to kick the problem down the road a bit.
I agree with CAL and DaveinHackensack -- I feel like I missed something here. I can't find any newsreports saying the White House is backing out of the stopgap plan announced last week.