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Sunday, February 15, 2009

Guess who's going to save GM and Chrysler

Tim Geithner and Larry Summers.

Comments (4)

shouldn't geithner be focusing on other issues, like the broad economy?

Having a "car czar" from outside the industry is as academically brilliant as replacing the board of Weyerhaeuser with the Sierra Club.

Obama is keeping ultimate control of the panel right beside him instead of farming it out, which is good for accountability. And if you read the story it's pretty clear that Bloom is the man who is going to be in the muddle with this thing, with his chief task being to get the companies and the union to agreement while also wringing concessions from their creditors. Bloom is an interesting guy:

"Ron Bloom has served as Special Assistant to the President of the United Steelworkers (USW) since 1996. His responsibilities include overseeing the union's collective bargaining program, with an emphasis on issues facing the union in its dealings with financially troubled companies and companies undertaking corporate transactions. He also coordinates the union's dealings with investors in both public and private companies. Prior to joining USW, Bloom was a founding partner of Keilin & Bloom, which focused on financial transactions in which unionized employees played a role as stakeholders. He previously served as a vice president of Lazard Freres & Co. LLC, working on corporate transactions. Bloom received a bachelor's degree from Wesleyan University and an M.B.A. from Harvard Business School."

To: Detroit
From: Tim Giethner

Re: Solution

You can shore up your cash flow by omitting the internal revenue service payments you have been remitting. Continue withholding FICA and other taxes from employee paychecks, and then keep the cash until you are appointed to a subsequent administration's cabinet, at which time you can promise to make good on your "oversight."

This should boost your cash flow 25-40%. As a cabinet nominee, all penalties and interest would be waived, so don't worry about that.


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