Mike Whitneyasked some interesting questions in his recent article, "You Ain't Seen Nothing Yet,"such as why won't Paulson support a bail-out for the Big 3 when he's throwing money at his banker buddies with no questions asked? He then provided an answer:
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There was a clue in Sunday's paper as to why Paulson is stiffing the car companies. According to UPI :

"GMAC Financial Services said Thursday it had applied to the U.S. Federal Reserve for bank holding company status, a step toward securing federal aid. The auto and home financing company said it had also submitted an application to the U.S. Treasury to participate in the Capital Purchase Program set up in the $700 billion financial firm bailout program known as the Emergency Economic Stabilization Act.

"As a bank holding company, GMAC would obtain increased flexibility and stability," the company said in a statement." (UPI)
He then asked a logical question:
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So why would GMAC want to become a bank holding company if General Motors is headed for the chopping block? Could it be that the government is working out a secret deal with management to put the company through Chapter 11 (reorganization) just so it can crush the union and eliminate their pension and health care benefits in one fell swoop?
And then answered his own question:

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You bet. Car workers will be reduced to slave wages just like they are in sunny Alabama where sharecropping has moved indoors. And--no surprise--the Democrats are right on board with this labor-busting charade. The auto industry isn't going to be shut down. That's just more fear-mongering like the blather about martial law and WMD. Detroit is going to be transformed into a workers gulag; Siberia on Lake Michigan, which is why Paulson is withholding the $25 billion. It's plain old class warfare.

Interesting theory, which will be proven one way or another before too much longer. It's a case of the Financial Economy (Wall Street)vs. the Real Economy (Main Street). I wonder which street will prevail?

Joe