Economist extraordinairre Dr. Mark Zandi was on the panel today on the side of the automobile companies. In his expert opinion, the proposed $34B won't save the companies, but only sustain them through fiscal year 2009. He thinks there is a strong chance that they will be back for more money should this bailout be approved. Doesn't sound like he's really on their side, does it? However, he states that should these companies go bankrupt, the resulting damage to the US economy would cause FAR more damage than to approve the bailout now. For some reason, I feel confident in his findings. Maybe it's just the fact that he's an economist who doesn't work for the auto industry and could honestly be out to protect the economy. Like a superhero! Can we start an internet meme please?
The other guy who got my attention today was the senator from Tennessee, Bob Corker. This guy did his homework and it showed. He asked the best questions of all the senators I caught on C-SPAN today. Really tough material like pointing out that Ford and Chrysler have less market value than BMW, a niche car company. Or the fact that industry analysts believe that Chrysler jumped on the bailout bandwagon in order to survive just long enough to merge with or sell to another company? The auto boys were sweating and shaking in their boots when Senator Corker took stage.
It's disconcerting that this event may have more immediate and more serious effects on the country than the presidential election! Also, how many Americans are paying attention to this legislation? So many people are still bitching/celebrating Obama's victory...
I was surprised that A) the coverage of the bailout hearings was interesting to watch and B) that I was able to follow along and interpret some of this deeper meaning behind what these men debating!
P.S. Yes, I know I missed my blog update yesterday. All I can do is attempt to make it up with another post today or an extra one tomorrow. =P