11 December 2008
This is Going to Get Ugly
Well, it appears that the Republicans have successfully filibustered the auto bailout, with the aid of Max Baucus (DINO-MT), though to be fair to Baucus, his objection was to a particularly egregious tax loophole, the SILO (Sale-In Lease-Out), which basically allowed municipal transit agencies to sell their rolling stock, and lease it back, so that companies could get undeserved tax breaks for a cash payments to said agencies.
As to the Republicans, it comes down to two things, they have transplants in their states, and they want to break the UAW.
I expect to see the Big e (Big 2½) and the transplants to start having problems with their suppliers withing a week, because if I were supplying parts to an automaker right now, I'd be demanding cash on delivery, not 90 or 120 days net.
This will get ugly, and if Harry Reid had any balls, he would make the Republicans actually stand up and talk, and not just throw up his hands when he loses the vote.
As to the Republicans, it comes down to two things, they have transplants in their states, and they want to break the UAW.
I expect to see the Big e (Big 2½) and the transplants to start having problems with their suppliers withing a week, because if I were supplying parts to an automaker right now, I'd be demanding cash on delivery, not 90 or 120 days net.
This will get ugly, and if Harry Reid had any balls, he would make the Republicans actually stand up and talk, and not just throw up his hands when he loses the vote.
Labels:
Auto Industry
,
Congress
,
Legislation
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