Wednesday, December 17, 2008

Blue Cross/Blue Shield Weighs In on "Big 3 Bailout"

When you understand that Blue Cross/Blue Shield is historically a union-labor-based organization, you understand why a number of people are getting this email:

I am asking for your help in supporting our automotive partners, GM, Chrysler and Ford, in their efforts to receive much-needed bridge loans from the federal government. As the Senate failed to pass a loan package last Thursday, I'm asking you to e-mail the White House directly and ask them to intervene in this process.

The success or failure of the autos has far-reaching implications that affect every Blues customer and employee in some way. These are unprecedented times, and I appreciate your participation in this process.

Daniel J. Loepp

President and CEO

Of course, I used the link in the note and suggested that the President should NOT award a "bridge loan" to GM and Chrysler.

First off, it will not be a "bridge loan." It will be a "pier loan." (Ask Citibank about those...) The term "bridge loan" is pure propaganda--those who use that term are asking you to believe that the "loan" is only needed until 2010, when the UAW will renegotiate their contracts and ***voila*** suddenly, cashflow will turn positive for GM/Chrysler.


Rick Esenberg reminds us that in 2005, when car sales were extremely good, GM managed to lose money. "Cash flow" is irrelevant, my friends, when you're taking losses at the rate GM does.

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