DO YOU THINK the AUTO BAILOUT SHOULD MAKE AUTO STOCKS ATTRACTIVE

[janeobi2]

WHAT'S YOUR VIEW

With the announcement coming from the white house on the approval of the controversial auto bailout for the auto industry to the tune of $17.4 billion . This announcement have led the US stock market to climb to the positive territory. Also the auto stocks are in the green as investors bid for their own share. With the current global crisis which presents a tough challenge to the survival of the auto industry even with the released funds. A deflated economy with record of millions of job losses which i don't think will be regarding putting their money down for purchasing cars at this point in time. Industry with huge debt on their neck and under pressure to deliver.
As an investor tell me, will u be bidding for ur own share and why?
If not, then why?   

 BELOW IS THE CONTENT OF THE NEWS RELEASE
The funding is available for GM and Chrysler, but not Ford, with $13.4 billion to be paid out in December and January, while the last $4 billion must be approved by Congress since it would come as part of the second installment of TARP. A description of the plan shows that GM and Chrysler must use the money to become financially viable, and if they end up in the same spot later on, taxpayer financing will not be provided later on.

Other terms of the plan include:

Firms must provide warrants for non-voting stock.
Firms must accept limits on executive compensation and eliminate perks such as corporate jets.
Debt owed to the government would be senior to other debts, to the extent permitted by law.
Firms must allow the government to examine their books and records.
Firms must report and the government has the power to block any large transactions (> $100 M).
Firms must comply with applicable Federal fuel efficiency and emissions requirements.
Firms must not issue new dividends while they owe government debt.
Targets:

Reduce debts by 2/3 via a debt for equity exchange.
Make one-half of VEBA payments in the form of stock.
Eliminate the jobs bank.
Work rules that are competitive with transplant auto manufacturers by 12/31/09.
Wages that are competitive with those of transplant auto manufacturers by 12/31/09.

[pectceo]

Great post. Very professional.

Before now I bought some shares of GM, Chrysler and Ford when they were at their critical low. I know the US government at the moment is trying to avoid by all means further job cuts. The trio are a great employer of labour and their bankruptcy can cause lots of further crisis for the US and the government.

I am planning flipping my shares because I see further challenges coming before the close of the first quarter of 2009. I see the trio also making it through the recession period.

My further buying of the auto shares will be after observing President Obama economic policies and how fast is he going to act.