Posted on 11/13/2008 11:03:49 AM PST by sickoflibs
WASHINGTON – Congressional Democrats are marshaling support for a rescue package to pump $25 billion in emergency loans to U.S. automakers in exchange for a government ownership stake in Detroit's car companies.
That may lead them into a showdown with Republicans ..
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, and Sen. Carl Levin, D-Mich., are developing legislation that would let the auto industry tap into the $700 billion Wall Street rescue money, approved by Congress last month, to fund their business operations.
General Motors Corp., Ford Motor Co. and Chrysler LLC are lobbying Congress to approve the aid, citing an economic downturn that has choked off auto sales, frozen credit and made them vulnerable. GM, the nation's largest automaker, posted a $2.5 billion quarterly loss Friday and has predicted it could run out of cash by the end of the year without government help.
House Republican leader John Boehner of Ohio said Thursday he would oppose an auto industry bailout. "Spending billions of additional federal tax dollars with no promises to reform the root causes crippling automakers' competitiveness around the world is neither fair to taxpayers nor sound fiscal policy," Boehner said.
Boehner noted that Congress had already approved a separate $25 billion loan program to help automakers develop fuel-efficient vehicles. He questioned "what assurances will Democrats give taxpayers about their chances of getting their auto bailout money back?"
legislation could set up a faceoff during the president's final days in office.
House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., are hoping for quick passage of the auto bailout during a postelection session that begins Monday.
Bush is open to helping the industry, the White House says, but the administration has expressed reservations about using the bailout money beyond the financial sector.
(Excerpt) Read more at news.yahoo.com ...
Why not? The GOP was stupid enough to go with the Soviet-style welfare payment to the financial industry. How would it be any different to give a welfare payment to GM, Ford and Chrysler?
This is not a bailout for the auto makers. It’s a bailout for the unions.
Well, she’s gotta pay off the unions for their support of Obama.
Bankruptcy reorganization would be the best thing in the world for the auto makers. They could disaffirm, then renegotiate (with some real leverage) their ridiculous contracts with the UAW. They could put real pressure on the Congress to do away with the stupid rules that require them to design and build cars consumers don't want. They could shed some of their massive bureaucracy and emerge with a management structure that is lean and efficient. It may be "tough love," but bankruptcy would be the best thing for them.
Question.
What happens if the taxpayers bailout the Big 3 and no one buys their vehicles?
With prospects of double digit unemployment, who knows for certain they will still have a job in 72 months so they can make their payments?
(Honda announces they will reduce production by 90,000 vehicles for 2009.)
Somebody was saying that GWBush set out to destroy the GOP. It sure seems that way especially in the last 2 years.
Why tap into the fund? Why not just cough up another $700 billion?
This should have a number of replies? But they are not showing
ping test
Pelosi don’t need no steenkin republicans to pass legislation, she didnt need them for the bailout
But she “needs” someone to blame for the disastrous effects of the bad legislation she passes
so, yeah, for that she “needs” republicans
and in that regard, Boner and McCain were of great service
Bush Clinton Bush Obama Pelosi McCain ...whoever ...it’s
all the same. Two parties manipulating America to bring in
the new world order .. code words for global socialism.
(maybe Republicans can learn from pain)
Just some of them. Not Jorge. He hasn’t learrned a thing.
He’ll work for the auto buy-out and sign it, just like his daddy signed the tax incease.
Later, Pelosi, Obama, Biden, and Reid will blame the Republican Administration and the public will believe it. Tedious, isn’t it?
This bailout is one example of spreading the wealth.
It infuriates me that my tax dollars would go toward paying for an ex-auto worker’s retirement package that I could only dream about (i.e. 90% of base salary, full medical). I’d be willing to take time off to march on Washington if that happened.
hh
Prepare for the American Trabi.
“Does she need many republicans for this?”
Good question. The last time she needed about a third - both as votes and as political cover. Not sure this time. It probably depends on how many of the old bailout Nay Dems have union shops or big union contributors and how many Reps have UAW plants in districts.
I guess the DEMs have to pay back the auto unions for their $400,000,000 investment in Obama’s Presidency.
Anyone watch O’Reilly last night? Dennis Miller was on and what he said almost made me spit soda all over the screen- Him and Billy were talking about AIG- Dennis said AIG should probably go to prison for corruption, and Billy said Yup- and probably Barney Frank should go to prison too- Dennis then said “Yeah, but I think maybe Barney might not mind going to prison”
I bout lost it on that one- Everyone in the studio including camera people were laughing
Anyone watch O’Reilly last night? Dennis Miller was on and what he said almost made me spit soda all over the screen- Him and Billy were talking about AIG- Dennis said AIG should probably go to prison for corruption, and Billy said Yup- and probably Barney Frank should go to prison too- Dennis then said “Yeah, but I think maybe Barney might not mind going to prison”
I bout lost it on that one- Everyone in the studio including camera people were laughing
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