KeithHennessey.com

Many of you are new to this blog since I wrote extensively about autos six weeks ago.  As background, I coordinated the auto loan process for President Bush last fall as the Director of the White House National Economic Council (the position now held by Dr. Lawrence Summers).  I wrote a series of posts on [...]

(Editorial note:  I was doing so well moving to shorter posts.  I fail miserably in achieving that goal here.  I went the comprehensive route instead.  I promise to return to shorter posts in the future.  Buckle up – this is a long ride.  I hope you find it’s worth it.) (Update:  There’s an important correction [...]

Tuesday I began with a simple example, which I am calling Large Bank. Yesterday we looked at TARP I, in which the government would buy troubled/toxic assets from banks. Today I will describe TARP II, the plan we (the Bush Administration) implemented, in which the government made direct equity investments in banks to help fill [...]

As I explained yesterday in part 4 of this series, the President delivered different substantive messages to General Motors and Chrysler.  I would like now to focus on one element of that message, because there’s an enormous hole in yesterday’s announcement, and it appears that the press missed it.  It appears that the Administration did [...]

In part one of this series I reviewed some background and long-term problems facing the U.S. auto manufacturers.  I pointed out that General Motors and Chrysler, and the Obama Administration, face a more immediate cash flow problem.  The Obama Administration is in the midst of rolling out the President’s new game plan.  I’d like to [...]

The Obama Administration is beginning to leak to the press their impending decision on loans to U.S. auto manufacturers.  I am writing in parallel to explain how you might think about such a Presidential decision.  There’s an obvious caveat that every President and each Administration are different, but I hope my explanation will at least [...]

Which matters more to you? Anger at failed AIG executives who are receiving bonuses while their employer is being bailed out by the taxpayer. Fear of what this or a future Congress might do once they cross the line and start breaking contracts retroactively for people who are politically unpopular. There are few more unsympathetic [...]

About Keith Hennessey About this blog About the National Economic Council About my work in the White House Photo credits Technical credits About Keith Hennessey I served as the senior White House economic advisor to President George W. Bush.  My job was to coordinate economic policy for the President, including macroeconomic issues, financial markets and [...]

President Bush spoke at 9:01 AM this morning in the Roosevelt Room, announcing his plan to aid two U.S. auto manufacturers.  Here are his remarks. THE PRESIDENT: Good morning. For years, America’s automakers have faced serious challenges — burdensome costs, a shrinking share of the market, and declining profits. In recent months, the global financial [...]