Detroit Carmakers On The Clock For Bail Out Deadline

General Motors Corp. and Chrysler LLC press for late concessions from Detroit labor unions to work into turnaround plans that are due to the government on Tuesday. Congress has let them know they need to have a viable plan if they are to get any more money from the U.S. government and ultimately the American people.

President Obama has decided to give them a helping hand by killing the idea of a "Car Czar", and will now name a task force today to oversee the remaking of the U.S. auto industry.

According to a White House official, the Presidential Task Force on Autos and other Obama administration officials will act together deciding whether GM and Chrysler are making sufficient progress to keep the $17.4 billion in loans they already have received and field any requests for additional aid, including Chrysler's urgent bid for an additional $3 billion.

"The administration understands the importance of the American auto industry," said a White House official Sunday, speaking on condition of anonymity. "It wants to work with these companies as they seek to become viable and thriving businesses. But we're also clear-eyed about the magnitude of the restructuring going forward."

The team will be headed by Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers. It will include staffers from several agencies, including the departments of Transportation, Energy, Labor, Commerce and Treasury, and the Environmental Protection Agency.
The only outside expert hired by the administration so far is Ron Bloom, an adviser to the U.S. Steelworkers who had worked with unions in several industries on corporate restructuring and employee ownership plans.


Obama said Wednesday he's prepared "to offer serious help" to Detroit's auto industry, but only if its executives, workers and suppliers share the sacrifices necessary to keep the companies afloat in the worst U.S. market in decades. The White House official said no decisions on next steps for the industry, including Chrysler's $3-billion request, had been made yet.

The team already is reviewing a request for suppliers for up to $25.5 billion in federal aid, including more loan money to Detroit automakers to speed payments to suppliers. Steep cuts in production over the past few months have put many suppliers on the brink of collapse.

Source and more at USATODAY.com

Bush Bails Out Brothers In Detroit...To What End

In a statement before the markets opened, President George W. Bush said the government would be providing $13.4 billion in emergency loans to G.M. and Chrysler, with the possibility of another $4 billion in February. Ford has said it does not need immediate aid.

Now the question is will it be enough or is this a cancer that has gone too far. My brothers in Detroit you are getting an early Christmas gift use it wisely

Mr. Bush said an “orderly bankruptcy” — an idea floated by the White House on Thursday — was not possible, but said the automakers need to undergo major restructuring to become viable.

“The only way to avoid a collapse of the U.S. auto industry is for the executive branch to step in,” Mr. Bush said. “The American people want the auto companies to succeed, and so do I. So today, I’m announcing that the federal government will grant loans to auto companies under conditions similar to those Congress considered last week.”
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BUT DAMN #248 REAL ESTATE: Forget Chrysler & Ford Motor, I Need A Bail Out!

Yes this is the house that I wanted four years ago...
BUT DAMN!
It's now worth less and I'm making less.
This Brotha' right here needs a bail out.

I'm sick and tired of Banks, Airlines and now the "Big 3" of CHRYSLER ,FORD AND GENERAL MOTORS asking for a bailout/ hand out, relief, whatever you want to call it. My mortgage balance is 530,300. the monthly payment is $3,300. And now a house down the street just sold for only 270,000. Why pay for a house that is not worth the balance sheet.

Brother I feel your pain and I don't want to give you false hope that once Obama gets in things will turn right around. I can only say that you need to hold on to what good credit you have right now. Here are some simple answer and question that will get you on the way to possible relief.

If I can’t pay my mortgage, why should I call my mortgage lender/servicer?

Your mortgage lender can help you identify the options available to you, should you have trouble paying your mortgage.

When should I call my lender?
You should contact your lender as soon as you know you will have difficulty meeting your mortgage payments. You do not have to wait until your interest rate re-sets, nor do you have to wait until you are already behind in your payments. In fact, the sooner you call, the more options will be available to you. No matter what your situation is, CALL TODAY.

What if I don’t want to call my lender?
Call the Homeowners HOPE™ Hotline – 1.888.995.HOPE. This hotline is staffed by HUD-approved credit counselors who can guide you through possible options.

What is a loan workout?
Either a loan modification or a repayment plan.

What is a loan modification?
A modification occurs any time any term of the original loan contract is permanently altered. This can involved a reduction in the interest rate, forgiveness of a portion of principal or extension of the maturity date of the loan.

What is a repayment plan?
A plan that allows the borrower to become current and catch up on missed payments that are appropriate to the borrower’s circumstances

The Organization HOPENOW was our source and they have hotline counselors willing to to talk with you FREE, so check them out. This is the link but the nuymber is listed above.

Finally, theree are also FREE government links that have their own sites and have some answers.
Fannie MaeFreddie MacHome Loan Learning CenterHomeownership Preservation FoundationMyMoneyManagement NeighborWorks America

High Flying Big 3 Automakers Turned Down By Congress...Told, "Next Visit, Take The Bus!"

Maybe it was the combined 800 point drop in the DOW over the last two days, Perhaps it was their lack of a financial game plan, but it probably was a continued lack of financial sensibility, which made Congress yesterday turn down Chrysler, GM and Ford for the 25 billion bailout loan they were asking for. Each day of testimony was more frustrating than the previous over lack of a spending plan by either of the three car companies. But the 'nail on the coffin' had to be the many phone calls Congress members were getting over the separate private jets each CEO took to arrive in Washington D.C. for the hearings. Perception is everything.

General Motors Corp(GM.N) will return two of its leased corporate jets amid intense criticism in Washington this week on the luxury travel arrangements of its chief executive. Really too little too late, as G.M CEO Rick Wagoner was in the capital to testify on the company's dire financial situation but then was blasted by lawmakers for flying on a private jet to ask for public funds and failing to make personal sacrifices in exchange for federal assistance.

Chief executives from Ford Motor Co(F.N), and Chrysler LLC, who were also there to plead for $25 billion in federal aid, came under fire too for flying to Washington in private jets.
Wagoner and Ford CEO Alan Mulally want to say they are required by their companies to fly by private aircraft for security reasons, according to company documents filed with the U.S. Securities and Exchange Commission.

A Chrysler spokesman said the automaker also leases or charters jets. He, however, declined to comment on whether the company was rethinking the use of private jets for executive travel, saying it was a "private matter."

Well if it is a 'private matter'..., then Chrysler CEO Robert Nardelli needs to take his broke butt back to Detroit and stop asking for Public Money. Hello! I myself am from Detroit and a lot of my friends are back in Detroit working for one of the "Big 3" automakers and frankly I'm embarrassed.

Congress has given them 12 days to return with a budget, a spending plan and vision for cars that will better compete in the world.