Consider the dilemma of the Democratic Party: Do they support a couple hundred thousand aging UAW workers that vote reliably and are tied economically to the GM retirement and healthcare plan? or do they support the thousands of young voters recently attracted to the party who will be the source of funding for any GM, F bailout for generations going forward?
GM General Motors: Pershing’s Ackman says GM should be allowed to fail – Globe and Mail (2.89 -0.47) -Update-
Globe and Mail reports hedge fund manager William Ackman, an activist investor known for pushing companies to do their jobs better, said U.S. automaker General Motors should not be bailed out but enter bankruptcy. “What should happen is they should do a prepackage bankruptcy,” Mr. Ackman, who runs Pershing Square Capital Management, told television journalist Charlie Rose. A publicist for Mr. Rose made the comments available before his interview show will be aired on PBS Tuesday evening. Mr. Ackman, who does not own GM shares, said the company has “been hamstrung for years because it has too much debt, and it has contracts that are uneconomic.” “And the way to solve that problem is not to lend more money to GM,” the fund manager told Mr. Rose.
And:
Democratic aides: Pelosi supports automakers help – AP
AP reports that Democratic aides say Speaker Nancy Pelosi intends to seek legislation to provide relief to the battered auto industry, and wants it done in a post-election session of Congress likely to convene in the next few days. Pelosi is not expected to specify how large a bailout she wants. The aides who described her views Tuesday did so on condition of anonymity, saying they were not authorized to discuss it publicly. The speaker’s decision comes a few days after General Motors warned it is rapidly running out of cash, and Ford announced its situation was only slightly better. President Bush would have to agree to sign the legislation, which would be passed well before President-elect Obama takes office. (GM, F)