Auto Bailout Hearings: Live Blog TwoBy
Moody analyst Mark Zandi is killing the automakers. Her says that $34 billion wonl;t be enough and that it will take more like $75 billion to $125 billion because of how low industry sales will stay, buyers won’t come back to the Big Three brands because of bad publicity, etc. He also is casting a lot of doubt on their ability to deliver on their plans and promises. He suggests lending them $34 billion in exchange for stock warrants, and to give the money in two tranches. He is advising against a Chap. 11. If after the first tranche, the benchmarks aren’t met, then he says cut off the money. Zandi’s testimony is confusing and I’sm sure is going to be the subject of much of the afternoon. He is basically saying it will never be enough, but give it to them anyway?
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