Congressional Democrats are pushing legislation to send $25 billion in emergency loans to the beleaguered auto industry in exchange for a government ownership stake in the Big Three car companies.
There's a word for this, soviet, no that's not it. Socialism! That's the word I was trying to think of.
House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., hope for quick passage of the auto bailout during a postelection session that begins Monday.
Looks like Bush will have to pull that veto pen out one more time before he leaves office.
Legislation being drafted by Rep. Barney Frank, chairman of the House Financial Services Committee, and Sen. Carl M. Levin, D-Mich., would dip into the $700 billion Wall Street rescue money, approved by Congress last month, for the auto aid.
Why use it for what it was meant for when we can use it to buy votes um I mean help the auto industry in Michigan?
Any effort to throw the companies a lifeline could run into GOP roadblocks that could derail it in the Senate. In that chamber, Republicans, including some who believe their votes for the Wall Street bailout hurt, and in some cases doomed, their re-election bids, are loath to agree to any new money.
Glad to see these guys finally got the message. Too bad it didn't happen until after they had their tails handed to them in two consecutive elections for the first time since the Great Depression.
Treasury Secretary Henry Paulson said Wednesday the auto sector was "critical," but that the financial industry rescue was not designed for car companies.
"Any solution has got to be leading to long-term viability" for auto companies, Paulson said.
He also suggested Congress could try to use the loan program already in place to help the companies.
Wait their is a program already in place to help and the dems want to start another loan programs why?
Democrats say those loans were designed to help automakers adapt to new fuel standards, not to stave off the financial disaster the companies now say is imminent.
You know I'm all for higher fuel efficiency vehicles, but if it's between that and saving the company I say we delay the focus on fuel efficiency until we get the industry back on it's feet.
Not to mention it's not like this happened overnight has White House Spokesperson Dana Perino pointed out. "Look at the history of these companies, decisions they've made over time that got them to where we are today."
I got it the industry should ask the UAW for some concessions so that they can stay in business. You know if the companies go out of business no one has a job right UAW? However Why would the UAW accept those terms if the government is just going to give the industry money anytime it's in trouble?
Auto executives, labor leaders and other industry proponents are mounting an intense lobbying effort for a bailout. They want an immediate $25 billion loan to keep the companies operating and a separate $25 billion to help cover future health care obligations for retirees and their dependents.
I'm all for taking care of your employees, but if the companies hadn't agreed to ridiculous contacts with the unions that they couldn't possibly afford we may not be in this situation.
Pelosi on Tuesday urged "immediate action" for the industry. Her request came less than a week after GM and Ford posted bleak third-quarter earnings reports. GM, the nation's largest automaker, posted a $2.5 billion quarterly loss Friday and warned that it may run out of money by the end of the year without government aid.
Democratic leaders will need to win over some skeptical lawmakers who question whether a bailout would cause changes in the auto industry or simply lead to more handout requests from other industries.
Hey I stupidly supported the first bailout thinking that it had to be done. Fool me once shame on you fool me twice shame on me. I say the Republicans left in congress should do everything they can to stop this bailout. Or who knows who will come knocking next?
http://news.yahoo.com/s/ap/20081112/ap_on_go_co/auto_bailout
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Look, no one likes any of this. But I don't think the Dems will have trouble passing this bill, and I'll bet good money Bush will sign it. You want to know why?
ReplyDeleteBecause nobody wants to be left holding the bag when GM goes under and takes hundreds of thousands of jobs with it.
As for the healthcare costs GM is burdened with, I agree, it's bad for business. That's why we need the massive health care reform the Dems have been trying to pass since Truman was in office.