GMAC's in a stall with current negotiations

Keeping true to my objective in providing commentary on issues and news that *might or would in fact cascade its effects to my personal interest, I've decided to re-invent this blog to carry relevant opinion-base writing with said issues.

So, here's my first pick -- GMAC's possible bailout negotiation dilema...



Ailing US auto-giant GMAC looks damped and battered following another revisit to its almost confirmed bailout contract deal with the US Government. Since this writing, the general reception over the government's economic package to the US auto industry's giant 3 (three) has been somewhat lukewarm than what the rest of the world originally expected.

Another amendment on the terms of the deal means GMAC would need to put up its share of about USD 30 billiion in regulatory capitalization in order for it to be cited with the government's plans to absorb upt0 75 percent of its current (finance) base. Unfortunately for the thousands of US workforce being laid-off daily, this means that the pink slips will not be halted anytime soon as the management of GMAC comes up with its share of the deal.

I find that this bleak event in the US auto-industry is in stark contrast of the local auto-market here in the Philippines which is, believe it or not, reporting growth for Q4 of 2008.

Perhaps because in a country where majority of the people rely on offshore jobs, a certain complacency in the fact that "we will not be cut-off soon since where generating less than a quarter in staff overhead than our US counterparts" mentality brings the worst indifference to people.

Some of the local surveys points to only one thing... the filipino people couldn't care a rats-ass if the US auto-market crumbles to dust. I wonder why this is so? Is it because people who are interested on the US automarket dont have significant investment on it anyway and they've already jumped ship the moment the fire alarm rang?

I guess its mostly because people dont really understand that they will be, in one way or the other, be impacted by how the entire thing play out.

Just imagine that half of the world will be literally grind to a halt since 80% of parts and technology in the auto world comes from the US auto industry... Sure you might not care at all (unless your employer here happens to be one of the big 3) and argue that you're riding a PUJ built by Sarao or driving your japanese honda civic to work anyway, but just think about it... the technology, parts, and jobs ultimately circles back to the US auto-industry!

Believe it or not, the death of the US auto industry will spell problems to all including the common person driving the bus you ride to work everyday.

So, I guess that eventhough these capitalist bastards have been lambasting our sensibilities for the longest time (something which I share passionately with those anti-american demonstrators), we need to be informed about the developments that's happening in this area, in the hope that, worst comes to worst, we'll know when to start signing up for "caritela driving" lessons...