Word from the Washington Post is that autoworkers are “angry.” Why should they be angry? They’ve been paid far too much (compared to autoworkers in, say, India) for far too long. Now their gravy train seems to be stalled on a sidling and they want the government to “to something” to get it going again.
It isn’t fair for the feds to bail out Wall Street but not Detroit, they say.
Elsewhere in the news, Bloomberg has asked the Fed to reveal what it did with the $2 trillion in emergency loans it passed out. Surely, the money went to the Fed’s clients – banks, and financial institutions generally. How? To whom? What were the terms? The Fed wouldn’t say. It refused the Freedom of Information Act petition on several grounds.
“Blank check for banks, pink slips for Detroit,” is how Gretchen Morgenson explains it in the New York Times.
The UAW has a point, of course. Neither industry should be bailed out. But if you’re going to throw money around in Manhattan, why not toss some to Detroit?
But the autoworkers can stop kvetching. Detroit will get its bailout too. Just wait.
for the Daily Reckoning Australia