President Bush announces bailout for GM and Chrysler

Shortly after 9AM EST today, President Bush announced that the federal government will be providing a bailout for GM and Chrysler.

They will be providing 13.4 billion in December. They will also be providing an additional 4 billion in February. The funding for the automakers will be provided from the 700 billion Troubled Asset Relief Program, which was originally intended for the ailing financial sector.

The President claims that if by March 31st the companies cannot show that they are financially viable, they will have to repay all monies lent by the federal government. This call by Bush is being presented as an opportunity to buy time for the companies to restructure.

The plan also puts limits on executive compensation and frivolous spending such as corporate jets. It also requires that automakers follow fuel efficiency, emission standards and open books to government scrutiny.  Will Chrysler adhere to opening their books completely to the government. They weren’t willing to present a credible restructuring agreement to Congress a few weeks ago, but they will all of a sudden support total transparency now? It seems that the “big two” have finally realized that they do not hold the cards to the deck in this hand of play.

The big three have recently temporarily suspended production in over 59 plants until January because of their current financial troubles.

It seems that desperate times have called for desperate measures but will this plan work?

President Obama Wastes No Time On Government Transparency

Continuing his obvious mastery of the internet during the primaries and general election, President Obama has created a new website to allow everyday citizens to keep an eye on what is going on with the transition in the White House. The website, www.change.gov , allows viewers to apply for a job, share their stories from election night, and get information about the transition to power.

CNN.com interviewed Andrew Raseij, founder of TechPresident.com, who said:

“I wouldn’t be surprised if Barack Obama starts doing a weekly YouTube video and also fireside chats for the 21st century by allowing people to filter up questions to him that he might answer.”

Obama has already stated that he is looking to appoint a CTO (Chief Technology Officer) to the White House, could this be the birth of a new era of transparency and openess to the Office of the Presidency?

President Bush speaks on Georgia, Russia bombs Tbilisi

President Bush held a press conference at 5:20pm EST. He went on to state that he had “evidence that Russia has plans to bomb Tbilisi’s civilian airport. That information is true.”

President Bush in the Rose garden

This following reports out of Georgia that the airport had been bombed along with radar installations throughout the country.

If the bombing of the Tbilisi airport occurs that is militarily significant. The United States, and the European Union have announced their intentions to send humanitarian aid to Georgia. Tbilisi was the one airport from which aid could have arrived and been distributed. There are also thousands of Americans stuck in Tbilisi and that would leave only land routes to escape. A convoy has been scheduled to leave Tbilisi for tomorrow with Americans and Europeans on board, we’ll see if it leaves.

President Bush called Russia’s actions ” a dramatic and brutal escalation” those are some tough words to use against Prime Minister Putin. He went on to say this was “Unacceptable in the 21st century.” and that “Russia is losing its standing in the international community.” It seems that was a direct shot at PM Putin.

Violence Escalates in Georgia

Wojtek Grzedzinski/Napo Images

Welcome to Tbilisi,
Violence has escalated fiercely and Georgia and Russia are at all out war. Russian jets have begun bombing civilian buildings in South Ossetia to drive out the Georgians. At the same time rebels in Abkhazia have launched an attack on Georgia from the west. Russia’s escalation can be attributed to what President Medvedev said recently his goal was; “to force the Georgian side to peace”.

Russian PM Vladimir Putin stopped by the Russian front on his way back from Beijing. Both sides have been arguing over who controls South Ossetia’s capital, with Moscow saying it has “liberated” Tskhinvali.