Automakers' Perfect Storm

Summary


Meltdown in the financial sector. Recent spikes in oil prices. Democratic electoral gains throughout Washington, made possible in part by the political muscle of organized labor. Add it all up, what have you got? A perfect storm that will surely translate into an infusion of billions more in taxpayer life-support for the seriously - possibly terminally - ill U.S. car-makers.

Such an outcome may not happen during this week's lame duck session of the expiring 110th Congress. In fact, the smart money says enough Republican legislators will find offensive the idea of throwing good money after bad that they will preclude passage in the Senate this year of any bailout for Detroit that the Democrats manage to cobble together.

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Extract


Automakers' Perfect Storm

Even so, the increased numbers of Democratic legislators who will make up the 111th Congress and the evident support of the incoming Obama administration essentially assures there will be a rescue package for Ford, General Motors and Chrysler, known collectively...

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