November 20th, 2008
09:50 PM ET

The Road ahead: Slippery when wet

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2008/US/11/19/autos.ceo.jets/art.auto.ceos.ap.jpg caption="Chrysler CEO Robert Nardelli, left, and Ford CEO Alan Mulally testify on Capitol Hill on Wednesday."]
Ali Velshi | Bio
CNN Senior Business Correspondent

– Reid cancels the auto bailout vote because he doesn’t have the 60 votes to pass it; Congress (Pelosi, Reid, Frank) says we want to help but you need to show us a viable plan for what you’ll do with the money, we gave money out before and got burned when companies didn’t use it in the way they were supposed to; show us a plan for how you plan to use the money by Dec. 2nd and if its good we’ll reconvene Dec. 8th to vote on it.

– Will these companies be able to come up with a plan before Dec. 2nd. They didn’t present a plan this week to congress, Ford seems to have the best chance and is least in trouble, GM is in major trouble and could blow throw the entire $25 billion itself in 5 months will want all/most of the money, and Chrysler is a private company so its completely unclear on what they’re finances are like or what kind of plan they’ll come up with but it will mean opening up their books and private dealings to scrutiny, unheard of for a private company but necessary if they want public funds

– The auto industry had this week’s hearings to paint the worst case scenario and hope they’d get money as a result and they didn’t get the money, so now what, they have to try to come up with specifics on how the money would help them save their company/save jobs and become more viable; this is a complicated task for just two weeks

– Unemployment numbers are high, they’re scary, they’re accelerating (in terms of the number of jobs that we’re losing); next new numbers will be out Dec. 5th and they’ll definitely be worse, the numbers are getting worse and worse; the numbers also don’t even include the number of people who are unemployed but not receiving unemployment; the number of unemployed keeps growing and these people have very little hope of finding another job bc there just aren’t enough jobs, especially in certain sectors (auto, manuf, etc); and being unemployed means they can’t buy things, they can’t pay mortgages, etc, downward spiral.

Filed under: Ali Velshi • Bailout Turmoil • Economy • Raw Politics
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