Posted on 12/20/2008 5:29:34 PM PST by daisyscarlett
In his weekly radio address today, President Bush discussed the problems of the auto industry and the bailout he has proposed to help them. transcript
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PHOTO OF THE DAY (from Friday)
In his weekly radio address President Bush said, " "The actions I'm taking represent a step that we all wish were not necessary. But given the situation, it is the most effective and responsible way to address this challenge facing our Nation. By giving the auto companies a chance to restructure, we will shield the American people from a harsh economic blow at a vulnerable time. And we will give American workers an opportunity to show the world once again that they can meet challenges with ingenuity and determination, and emerge stronger than before."
Fact sheet In Focus: Economy
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 crisis has made these challenges even more severe. Now some U.S. auto executives say that their companies are nearing collapse -- and that the only way they can buy time to restructure is with help from the Federal government.
This is a difficult situation that involves fundamental questions about government's proper role. On the one hand, government has a responsibility not to undermine the private enterprise system. On the other hand, government has a responsibility to safeguard the broader health and stability of our economy.
Addressing the challenges in the auto industry requires us to balance these two responsibilities. If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers. Under ordinary economic circumstances, I would say this is the price that failed companies must pay -- and I would not favor intervening to prevent automakers from going out of business.
But these are not ordinary circumstances. In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action. The question is how we can best give it a chance to succeed. Some argue the wisest path is to allow the auto companies to reorganize through Chapter 11 provisions of our bankruptcy laws -- and provide a Federal loan to keep them operating while they try to restructure. But given the current state of the auto industry, my economic advisors believe that bankruptcy could now lead to its disorderly collapse -- sending our economy into a deeper and longer recession.
A more responsible option is to give auto companies an incentive to restructure outside of bankruptcy -- and a brief window in which to do it. My Administration proposed legislation to achieve this, but Congress was unable to get a bill to my desk before adjourning for the year. This means the only way to stave off a collapse of the auto industry is for the executive branch to step in. So yesterday, I announced that the Federal government will grant loans to auto companies, which will provide help to them in two ways.
First, the loans will give automakers three months to put in place plans to restructure into viable companies -- which we believe they are capable of doing. Second, if restructuring cannot be accomplished outside of bankruptcy, the loans will provide time for companies to make the legal and financial preparations necessary for an orderly Chapter 11 process that offers a better prospect of long-term success.
The terms of the loans will require the auto companies to demonstrate how they would become viable. They must pay back all their loans to the government, and show that their firms can earn a profit and achieve a positive net worth. This restructuring will require meaningful concessions from all involved in the auto industry -- management, labor unions, creditors, bondholders, dealers, and suppliers. If a company fails to come up with a viable plan by March 31st, it will be required to repay its Federal loans. Taken together, these conditions send a clear message to everyone involved in American automakers: The time to make the hard decisions to become viable is now -- or the only option will be bankruptcy.
The actions I'm taking represent a step that we all wish were not necessary. But given the situation, it is the most effective and responsible way to address this challenge facing our Nation. By giving the auto companies a chance to restructure, we will shield the American people from a harsh economic blow at a vulnerable time. And we will give American workers an opportunity to show the world once again that they can meet challenges with ingenuity and determination, and emerge stronger than before.
Thank you for listening.
As the camera is rolling, Miss Beazley plays with an ornament during the filming of BarneyCam VII: A Red, White, and Blue Christmas Dec. 3, 2008, in the East Room of the White House.
Miss Beazley runs down the Cross Hall as Barney follows Dec. 3, 2008, during the filming of BarneyCam VII: A Red, White and Blue Christmas.
Barney strolls down the Cross Hall checking on all of the great decorations Dec. 3, 2008, at the White House.
President George W. Bush pets Barney during the filming of BarneyCam VII: A Red, White and Blue Christmas in the Red Room Nov. 29, 2008 at the White House.
You are number uno today and win another toaster.
Wonderful Christmas of the First Couple and the First Pets!
I am going to miss Barney’s Christmas Cam next year. :(
Thanks for these great pictures, Daisy!
Yay!!! I can always use another toaster around here! :D
daisyscarlett: THANK YOU for posting tonight’s DOSE — what a pleasant distraction from all of the present wrapping I’m doing at the moment!
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MUST READ . . .
BUSH ON HIS RECORD
The president defends his democracy agenda and his economic interventionism.
By Kimberley A. Strassel
Air Force One
As he sits at his mile-high desk, clad in his Air Force One crew jacket, George W. Bush is as he has ever been: upbeat, focused, confident in his past decisions and in the future.
Terry ShoffnerThis is remarkable given the up and downs — lately downs — of his administration. Through it all, the president has acted on his own convictions, a trait that has inspired both violent critics and passionate defenders.
. . . I ask the president what he’s learned from his time in office — not from a policy perspective, but as a person. His answer is unsurprising from a man who has always talked openly of his faith — though that, too, has earned him criticism.
“I’VE LEARNED THAT GOD IS GOOD. ALL OF THE TIME.” [I am sooooooooooooooo going to miss this man!]
You can read the entire article here:
http://online.wsj.com/article/SB122973196721822961.html
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Just in case you missed my post from last evening:
MUST READ . . .
BUSH DAUGHTERS: WE’RE READY FOR DAD TO RETURN TO TEXAS
By Sandra Sobieraj Westfall
[This week’s People magazine features a 2-page spread on the First Family (they even placed it before the Obama’s similar spread!]
http://www.people.com/people/article/0,,20247796,00.html
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More on the photo:
PORTRAIT SHOWS BUSH RELAXED AND SMILING (which is exactly why I love it!)
http://news.yahoo.com/s/ap/20081219/ap_on_go_pr_wh/bush_portrait;_ylt=AqudcrcO45LSoibrCdEThzgD5gcF
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THANK YOU PRESIDENT BUSH . . .
BUSH THROWS DOWN GAUNTLET FOR OBAMA ON “RIGHT TO DIE” AND ABORTION WITH “CONSCIENCE RULE”
http://www.floppingaces.net/2008/12/19/bush-throws-down-gauntlet-for-obama-on-right-to-die-and-abortion-with-conscience-rule/
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BUSH THE UNION BUSTER
by Bill Dupray in: Capitalism, Congress, Conservatives, Economy
Looks like Bush has handed a last minute victory to Conservatives and Free Marketeers on his way out the door. The key provision of the $17 Billion bailout for the automakers is that union wages must be lowered to match the non-union wages of U.S.-based foreign car companies.
http://patriotroom.com/bush-the-union-buster/
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MUST VIEW . . .
PRESIDENT GEORGE W BUSH VISITS AEI
On Thursday, December 18, one month before he is to leave office, President George W. Bush visited AEI for a candid, informal conversation about the institution of the presidency with a special focus on his domestic policy initiatives. The subjects ranged from judicial appointees to education reform and from prescription drugs to immigration.
You will find a link to a video of this wonderful ‘chat’ here:
Click here to view the president’s address on C-SPAN.
http://www.aei.org/
Oh, I love the portrait, too. Very ‘cowboy’, just like we like him! I’m sure it will drive those with BDS even crazier, every time they walk by it!
The photo in the People magazine of our First Family is really nice. I was glad to see the girls opening up a bit..how poignant it was for Jenna to say to the effect that her Dad was a much loved governor of TX and he did not change when he came to D.C. Reading between the lines, I senses that she could not understand why he was not as popular as Prez as he was as Gov when he was the same decent guy.
That’s a great story about the girls. Yes, I guess they were naive, as was the President, somewhat, about how he’d be treated by the National Democrats. They are a vile bunch, as he’s learned. I’m thrilled he’ll be going back to Texas with his ethics and principles intact.
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