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Everybody knows by now, that after ZIRP , next we will have NIRP...
But many are asking themselves what is going to happen next after the Big 3 Bailout?...
Here is the answer provided by an insider:
http://www.tickerforum.org/cgi-ticke...glepost=899285
That was predictable ...
In the next few days Hank Paulson will present us a new initiative derived from TARP....
The Car Rental Asset Plan or .... CRAP ....
But many are asking themselves what is going to happen next after the Big 3 Bailout?...
Here is the answer provided by an insider:
http://www.tickerforum.org/cgi-ticke...glepost=899285
The second letter will really boil your blood!
My wife works for a major car rental company and shared with me 2 letters that the CEO joyfully sent all employees. She told me I was not allowed to distribute them, so no one tell her. They are in .PDF form, but I do not know how to upload them here so I will copy and paste. I hope she does not get in any trouble from me releasing this.
Here is the first:
(My question....whats so honorable about these people)
After forwarding this letter to me she told me that their auto supplier(not naming so I don't give her company away) will be dumping close to 2,000 cars on all top locations. The inventory at the manufacturer level is too great and they need to reduce it. She told me that according to their contract they were obligate to accept these new cars, despite no need and no use for these cars. For the first time since she can remember they have more cars than reservations on a holiday.
Here is letter #2: (GET THIS - THEY want to be eligible to tap FED money!!!)
My wife works for a major car rental company and shared with me 2 letters that the CEO joyfully sent all employees. She told me I was not allowed to distribute them, so no one tell her. They are in .PDF form, but I do not know how to upload them here so I will copy and paste. I hope she does not get in any trouble from me releasing this.
Here is the first:
December 8, 2008
Honorable Nancy Pelosi
Offi ce of the Speaker of the House of Representatives
H-232 Capitol Building
Washington, D.C. 20515
Honorable John Boehner
Offi ce of the Republican Leader
H-204 Capitol Building
Washington, D.C. 20515
Dear Speaker Pelosi and Leader Boehner:
As Congress considers whether to provide federal assistance to Ford, General Motors and Chrysler, we believe it is critical that you appreciate the important role of the Big 3 in the U.S. economy. Although historically the Big 3 has by their own admission been slowto react to changing market conditions, they clearly were on the path toward substantive change prior to the collapse of the credit markets. Couple the credit crisis with the deteriorating levels of consumer confi dence and rising unemployment, and it becomes apparent that one or more of the Detroit-based automakers will likely fail without federal
assistance. The ramifications of even one manufacturer failing would impact many related industries and pose a signifi cant threat to the overall economy, which is why we support temporary federal assistance for the Big 3 automakers.
The U.S. automotive industry supports over three million jobs in all 50 states, invests over $12 billion annually in research and development and provides products that are fundamental to the functioning of key industry sectors within the U.S. The rental car industry is the largest purchaser of vehicles from the Big 3, purchasing approximately 1.8 million vehicles per year. The failure of the Big 3 would significantly impact the rental car industry by further reducing vehicle residual values, increasing the
cost of rental car fi nancing, and limiting a critical source of vehicle supply to the industry.
We support temporary access to government financing that will enable the Big 3 to remain viable. Federal assistance should be conditioned upon the Big 3 taking appropriate steps to right size their cost structures in a timely and orderly manner. Federal assistance should also be coupled with a mechanism to ensure an appropriate level of accountability to protect taxpayer dollars.
Thank you for your consideration of our views.
Sincerely,
Ronald L. Nelson
Chairman and Chief Executive Officer
Avis Budget Group, Inc.
Mark P. Frissora
Chairman and Chief Executive Officer
The Hertz Corporation
Andrew C. Taylor
Chairman and Chief Executive Officer
Enterprise Rent-A-Car
Scott L. Thompson
President and Chief Executive Officer
Dollar Thrifty Automotive Group
cc: The Honorable Barney Frank, Chairman, Committee on Financial Services
The Honorable Spencer Bachus, Ranking Member, Committee on Financial Services
Honorable Nancy Pelosi
Offi ce of the Speaker of the House of Representatives
H-232 Capitol Building
Washington, D.C. 20515
Honorable John Boehner
Offi ce of the Republican Leader
H-204 Capitol Building
Washington, D.C. 20515
Dear Speaker Pelosi and Leader Boehner:
As Congress considers whether to provide federal assistance to Ford, General Motors and Chrysler, we believe it is critical that you appreciate the important role of the Big 3 in the U.S. economy. Although historically the Big 3 has by their own admission been slowto react to changing market conditions, they clearly were on the path toward substantive change prior to the collapse of the credit markets. Couple the credit crisis with the deteriorating levels of consumer confi dence and rising unemployment, and it becomes apparent that one or more of the Detroit-based automakers will likely fail without federal
assistance. The ramifications of even one manufacturer failing would impact many related industries and pose a signifi cant threat to the overall economy, which is why we support temporary federal assistance for the Big 3 automakers.
The U.S. automotive industry supports over three million jobs in all 50 states, invests over $12 billion annually in research and development and provides products that are fundamental to the functioning of key industry sectors within the U.S. The rental car industry is the largest purchaser of vehicles from the Big 3, purchasing approximately 1.8 million vehicles per year. The failure of the Big 3 would significantly impact the rental car industry by further reducing vehicle residual values, increasing the
cost of rental car fi nancing, and limiting a critical source of vehicle supply to the industry.
We support temporary access to government financing that will enable the Big 3 to remain viable. Federal assistance should be conditioned upon the Big 3 taking appropriate steps to right size their cost structures in a timely and orderly manner. Federal assistance should also be coupled with a mechanism to ensure an appropriate level of accountability to protect taxpayer dollars.
Thank you for your consideration of our views.
Sincerely,
Ronald L. Nelson
Chairman and Chief Executive Officer
Avis Budget Group, Inc.
Mark P. Frissora
Chairman and Chief Executive Officer
The Hertz Corporation
Andrew C. Taylor
Chairman and Chief Executive Officer
Enterprise Rent-A-Car
Scott L. Thompson
President and Chief Executive Officer
Dollar Thrifty Automotive Group
cc: The Honorable Barney Frank, Chairman, Committee on Financial Services
The Honorable Spencer Bachus, Ranking Member, Committee on Financial Services
After forwarding this letter to me she told me that their auto supplier(not naming so I don't give her company away) will be dumping close to 2,000 cars on all top locations. The inventory at the manufacturer level is too great and they need to reduce it. She told me that according to their contract they were obligate to accept these new cars, despite no need and no use for these cars. For the first time since she can remember they have more cars than reservations on a holiday.
Here is letter #2: (GET THIS - THEY want to be eligible to tap FED money!!!)
December 8, 2008
Honorable Nancy Pelosi
Offi ce of the Speaker of the House of Representatives
H-232 Capitol Building
Washington, D.C. 20515
Honorable John Boehner
Offi ce of the Republican Leader
H-204 Capitol Building
Washington, D.C. 20515
Dear Speaker Pelosi and Leader Boehner:
As Congress considers whether to provide federal assistance to Ford, General Motors and Chrysler, we believe it is critical that you appreciate the important role of the Big 3 in the U.S. economy. Although historically the Big 3 has by their own admission been slow to react to changing market conditions, they clearly were on the path toward substantive change prior to the collapse of the credit markets. Couple the credit crisis with the deteriorating levels of consumer confi dence and rising unemployment, and it becomes apparent that one or more of the Detroit-based automakers will likely fail without federal
assistance. The ramifi cations of even one manufacturer failing would impact many related industries and pose a signifi cant threat to the overall economy, which is why we support temporary federal assistance for the Big 3 automakers.
The U.S. automotive industry supports over three million jobs in all 50 states, invests over $12 billion annually in research and development and provides products that are fundamental to the functioning of key industry sectors within the U.S.
The rental car industry is the largest purchaser of vehicles from the Big 3, purchasing approximately 1.8 million vehicles per year. The failure of the Big 3 would significantly impact the rental car industry by further reducing vehicle residual values, increasing the cost of rental car financing, and limiting a critical source of vehicle supply to the industry.
We view the Federal Reserve Board’s creation of the Commercial Funding Facility, designed to assist financial institutions which provide commercial paper and the Treasury Departments Term Asset Backed Loan Facility to boost consumer loans for automobiles and student loans as positive steps. While, in theory, these facilities should provide access to the credit markets enabling our companies to obtain financing for fleet purchases, we have instead been deemed ineligible for such programs as we are not fi nancial institutions
and our methods of fleet financing preclude us from program participation.
As Congress reviews large scale bail out options for automobile manufacturers, the car rental industry is seeking only a modest amount of support. We ask Congress simply to direct the Treasury Department to create a program similar to the Commercial Paper Funding Facility or the Term Asset Backed Loan Facility for which our companies can qualify and be deemed eligible participants. Our proposal would recognize that asset backed securities, such as variable funding notes with appropriate investment grade ratings, A-1/P-1 commercial paper with maturities as short as 30 days and A-2/P-2 rated
commercial paper are worthy of assistance until the credit markets ease up.
We urge you to take appropriate action and create a viable program within the Treasury department that supports these objectives and allows our industry—including our employees, suppliers and investors—to continue on the road to success.
Thank you for your consideration of our views.
Sincerely,
Ronald L. Nelson
Chairman and Chief Executive Officer
Avis Budget Group, Inc.
Mark P. Frissora
Chairman and Chief Executive Officer
The Hertz Corporation
Andrew C. Taylor
Chairman and Chief Executive Officer
Enterprise Rent-A-Car
Scott L. Thompson
President and Chief Executive Officer
Dollar Thrifty Automotive Group
cc: The Honorable Barney Frank, Chairman, Committee on Financial Services
The Honorable Spencer Bachus, Ranking Member, Committee on Financial Services
Honorable Nancy Pelosi
Offi ce of the Speaker of the House of Representatives
H-232 Capitol Building
Washington, D.C. 20515
Honorable John Boehner
Offi ce of the Republican Leader
H-204 Capitol Building
Washington, D.C. 20515
Dear Speaker Pelosi and Leader Boehner:
As Congress considers whether to provide federal assistance to Ford, General Motors and Chrysler, we believe it is critical that you appreciate the important role of the Big 3 in the U.S. economy. Although historically the Big 3 has by their own admission been slow to react to changing market conditions, they clearly were on the path toward substantive change prior to the collapse of the credit markets. Couple the credit crisis with the deteriorating levels of consumer confi dence and rising unemployment, and it becomes apparent that one or more of the Detroit-based automakers will likely fail without federal
assistance. The ramifi cations of even one manufacturer failing would impact many related industries and pose a signifi cant threat to the overall economy, which is why we support temporary federal assistance for the Big 3 automakers.
The U.S. automotive industry supports over three million jobs in all 50 states, invests over $12 billion annually in research and development and provides products that are fundamental to the functioning of key industry sectors within the U.S.
The rental car industry is the largest purchaser of vehicles from the Big 3, purchasing approximately 1.8 million vehicles per year. The failure of the Big 3 would significantly impact the rental car industry by further reducing vehicle residual values, increasing the cost of rental car financing, and limiting a critical source of vehicle supply to the industry.
We view the Federal Reserve Board’s creation of the Commercial Funding Facility, designed to assist financial institutions which provide commercial paper and the Treasury Departments Term Asset Backed Loan Facility to boost consumer loans for automobiles and student loans as positive steps. While, in theory, these facilities should provide access to the credit markets enabling our companies to obtain financing for fleet purchases, we have instead been deemed ineligible for such programs as we are not fi nancial institutions
and our methods of fleet financing preclude us from program participation.
As Congress reviews large scale bail out options for automobile manufacturers, the car rental industry is seeking only a modest amount of support. We ask Congress simply to direct the Treasury Department to create a program similar to the Commercial Paper Funding Facility or the Term Asset Backed Loan Facility for which our companies can qualify and be deemed eligible participants. Our proposal would recognize that asset backed securities, such as variable funding notes with appropriate investment grade ratings, A-1/P-1 commercial paper with maturities as short as 30 days and A-2/P-2 rated
commercial paper are worthy of assistance until the credit markets ease up.
We urge you to take appropriate action and create a viable program within the Treasury department that supports these objectives and allows our industry—including our employees, suppliers and investors—to continue on the road to success.
Thank you for your consideration of our views.
Sincerely,
Ronald L. Nelson
Chairman and Chief Executive Officer
Avis Budget Group, Inc.
Mark P. Frissora
Chairman and Chief Executive Officer
The Hertz Corporation
Andrew C. Taylor
Chairman and Chief Executive Officer
Enterprise Rent-A-Car
Scott L. Thompson
President and Chief Executive Officer
Dollar Thrifty Automotive Group
cc: The Honorable Barney Frank, Chairman, Committee on Financial Services
The Honorable Spencer Bachus, Ranking Member, Committee on Financial Services
In the next few days Hank Paulson will present us a new initiative derived from TARP....
The Car Rental Asset Plan or .... CRAP ....
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