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GM gets the 'Pelosi bump'

House Speaker Nancy Pelosi came out in support of General Motors on the "too big to fail" side, and it paid off -- Bloomberg is reporting that GM rose in New York trading today. From the article:

"It's truly one of those companies that's too big to fail, and everybody understands that," said Nariman Behravesh, chief economist at IHS Global Insight Inc. in Lexington, Massachusetts. "If it does collapse, it could make the recession deeper and longer."

Incidentally, Nariman Behravesh was on Marketplace last week talking about what he thought were top priorities for the economic bailout. The auto industry wasn't one of them.

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The auto makers should not get one dime of my taxpayer money. It is a total joke that they are even being talked to. These people had over 25 year to come up with a better product instead they spent all of their money on lobbying against increasing the CAFE standards and alternative energy cars, while other countries were coming up with viable alternatives. No, because they refused to be proactive or move forward, they are being left behind and we are supposed to make up for their ignorance with our hard earned money. Forget it, let them go under. That is true capitalism, where if you don't have a sound product then you cease to exist. They can go into bankruptcy and them reform, hopefully for the better. That last thing this economy needs is capitalistic profits, which they had for a long time and socialized losses!

GM has been working for the better part of 10+ years to cut costs, and come up with that much better car to compete with the foreign car makers. no luck yet, and they are fading fast, to the tune of $2B in losses each month. how can we afford to finance a black hole of cash? and for how long? as i recall, americans used to ridicule the Europeans for taking the same approach on Air-Bus, and I don't think they make money yet either. doesn't the financing of a losing proposition go against every idea behind the capitalist idea?

I though this was capitalism where industry pays for tooling cost and executive pay? We are producing crappy products (import 80% from 3th world) charge a premium and still can not retool. Perhaps we need new executives with lower pay and higher morals.

Anything for a shilling. Thus, Nariman Behravesh is a shill', apparently recently hired by the automotive industry as Center for Automotive Research (read: industry shills) weren't getting their message across with a subtle acronym like CAR.

I think this financial bail out is a crock of s**t! I don't want my tax dollars used to bail out the lot of THIEVES in the financial district. These THIEVES created the problem by taking advantage of the consumer with their GREED, hush, hush don't ask, don't tell lending practices. I worked in escrow and was "forbidden" to disclose to the consumer that they were about to sign away everything they worked hard for, just to be put on the barrel and foreclosed upon.

I agree with Mike but it should not stop there it should include all of congress and any forturne 500 companies who consistantly rape their employees of any dignity or better yet measly wages that do not match the cost of daily living.

All this talk about creating jobs and how it starts with small buisness yet we are allowing the good for nothing government to force feed the citizens of the UNunited states a trillion dollar bill to save the large corporations with lay-offs in the thousands, so much for bailing out small business and creating jobs.

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