Thursday, December 11, 2008

The BIG 3’s auto bail out is a joke.

As of now.

The house bill H.R. 7321 loans $14 billion at the rate of 5% for each of the first five years, after that the rate will be 9%.  The President shall designate one or more from the Executive branch.  The  designate shall have private expertise in such areas as economic stabilization, financial aid to commerce and industry and financial restructuring, energy efficiency, and environmental protection. Where in the h#$% will the White House find this person? 

Those that take part in the bridge financing will give warrants to the government, these warrants shall give the President’s designee the right to receive nonvoting common stock or preferred stock.  Warrants that are common stock will have value that is equaled to 20 percent of the aggregate amount of all loans provided.  The common stock warrant price of each company shall be the 15 day moving average of the company that is requesting assistance as of December 2, 2008.  Preferred stock Warrants may also be issued.
  
The Secretary of Energy will make $7.1 billion available to the President’s designee.   The Secretary of Energy will also reserve $500 billion.

1 comment:

MDSF said...

The designate shall have private expertise in such areas as economic stabilization, financial aid to commerce and industry and financial restructuring, energy efficiency, and environmental protection. Where in the h#$% will the White House find this person?

I'm guessing the appointee will be someone with experience testifying before Congress and some administrative experience whose Rolodex will contain names of people with these various qualifications in various quantities.

What's George Mitchell doing now that baseball's above reproach again?