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Re: Obama Transition Said to Consider a ‘Prepack’ Auto Bankruptcy
This is DOA.
The complaints from the UAW, suppliers, and dealers will kill it.
The final "plan" will have a government VEBA contribution, a "bridge loan," and might have a tax incentive to boost sales. The UAW gets its VEBA contribution - sold to the electorate as "money we'd have to pay anyway through the Pension Benefit Guaranty Corp.", the companies get operating cash, and the GOP gets a tax cut, of sorts, that will help the home town car dealers.
Mr. Wagoner's successor will have to decide what to do with the bridge loan.
Possibly.
Cheers,
Ed
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