In an online town hall meeting yesterday, President Obama warned job losses would get worse this year. Also, Obama tells the auto industry they need to share the pain of restructuring among manufacturers, bondholders, unions and suppliers..
Meanwhile, his auto task force signals willingness to loan more money. Chrysler and GM are asking for another $22 billion. The task force hinted that the money could be held back to force the stakeholders to come to a deal. The statements by Obama and the auto task force suggest unions and bondholders are still far apart on a deal. The deadline for a final deal was to be March 31, 2009. Don't expect the Obama Administration to get tough and hold the auto executives and the UAW to it. If GM and Chrysler could not reach a deal with the UAW and bondholders by March 31, 2009, they were supposed to be required to return the previously lent money and be forced into bankruptcy.