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Deadlock Over Detroit Bailout May Soon End
CNN.com ^ | 6 Dec 08 | Dana Bash

Posted on 12/05/2008 11:11:13 PM PST by Doofer

WASHINGTON (CNN) -- Help may soon be on the way to the struggling U.S. auto industry after House Speaker Nancy Pelosi backed off her opposition to using funds from a fuel-efficiency research program for a bailout, two congressional officials said Friday.

The significant move from Pelosi signals that the deadlock over rescuing Detroit may be over.

Congressional Republicans and President Bush support the idea of tapping the $25 billion advanced technology fund. Two officials familiar with compromise talks told CNN that the working target is $15 billion to $17 billion in bridge loans, intended to fund the struggling Big Three automakers through March.

However, one senior Democratic congressional source told CNN that House and Senate committee staff will meet over the weekend to write a bill to provide $20 billion to $25 billion in assistance to the U.S. auto companies.

This aide said the "mathematicians were working" at how to reprogram the money by reducing a subsidy to come up with a figure that would be available for loans, despite an earlier report that only $7.5 billion was available from the fund passed last year for fuel efficiency research.

This aide said the bill could be on the House floor as early as Tuesday, but thought it was more likely that the Senate would vote on the bill first.

"They need to get Republicans on board and send an important signal for House members to vote for this," the aide said.

The officials cautioned that talks are still very fluid and that there are still other options on the table and many details to discuss.

(Excerpt) Read more at edition.cnn.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: bailout

1 posted on 12/05/2008 11:11:13 PM PST by Doofer
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To: Doofer
$25 billion advanced technology fund.

What the heck is this?

2 posted on 12/05/2008 11:13:17 PM PST by Doofer
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To: Doofer

where is the Republican congressional and party leadership?


3 posted on 12/05/2008 11:18:18 PM PST by volslover
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To: Doofer

If Nancy Pelosi and the Sierra Club are the de facto new CEO of GM, you can be sure I won’t buy what they are selling.

Hybrids???

I want something that goes real fast and gets really shitty gas mileage.


4 posted on 12/05/2008 11:19:29 PM PST by Eric Blair 2084 (Alcohol, Tobacco and Firearms shouldn't be a federal agency...it should be a convenience store.)
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To: volslover
where is the Republican congressional and party leadership?

Out for breakfast, lunch and dinner...

5 posted on 12/05/2008 11:26:52 PM PST by Doofer
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To: Eric Blair 2084

no matter how bad things are, they can always be worse.
Unfortunately many are going to learn this lesson in way they will never forget.


6 posted on 12/05/2008 11:52:27 PM PST by genghis
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To: Doofer
What the heck is this?

That $25B is just play money the Democrats threw at the carmakers ostensibly to R&D "green" cars. Whatever. The idea was to pander to their enviro-wackjob constituency while using Detroit carmakers to launder their campaign dough through the UAW at the same time. (yawn) Nothing new about that.

What's interesting is that the rats had to wink and nod at the right greenies and reassure them that they'll end up well greased after January 20th, so be patient and don't dump on us for this little charade.

7 posted on 12/06/2008 12:11:24 AM PST by Lancey Howard
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To: Doofer

That’s the money they already voted to give them to revamp the factories for greener cars. The money, evidently hadn’t been distributed yet (it was voted on in September) but Pelosi didn’t want to touch that money and wanted to give them “new” funds. Here’s a link from September that talks about the original “bailout” for technology improvement.

http://articles.latimes.com/2008/sep/25/business/fi-auto25


8 posted on 12/06/2008 1:49:38 AM PST by Dawn531
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To: volslover

Neither party in Washington listening to anything Americans say. They know better.


9 posted on 12/06/2008 2:07:15 AM PST by Lady GOP
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To: Doofer

I’m wondering why a man making $9.00 an hour should help out a man making $28.00 plus an hour. Where is the logic?


10 posted on 12/06/2008 3:01:20 AM PST by JamesA (He who hesitates is lost.)
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To: Doofer

The bailout will occur when Barney gets a Hummer!


11 posted on 12/06/2008 3:07:39 AM PST by Gaffer
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To: Doofer

“$25 billion advanced technology fund.”

Washington has been meddling in the auto industry for most of my life, and that spans most of the US Auto industry. Congressional mandates over emissions, safety, size and weight and a thousand other things have burdened the manufacturers and the consumers alike, and allowed foreign auto makers to catch and surpass our domestic market in both quality and afordability. Now they will rescue the industry in a similar fashion to giving a drunk an unlimited supply of booze.


12 posted on 12/06/2008 3:10:39 AM PST by billhilly (Sayonara Detroit)
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To: Gaffer

That is funny as hell, but Barney has already had too many Hummers.


13 posted on 12/06/2008 3:12:56 AM PST by billhilly (Sayonara Detroit)
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To: volslover

14 posted on 12/06/2008 3:52:53 AM PST by johnny7 ("Duck I says... ")
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To: Doofer

15 posted on 12/06/2008 4:04:09 AM PST by rhema ("Break the conventions; keep the commandments." -- G. K. Chesterton)
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To: Doofer
The officials cautioned that talks are still very fluid and that there are still other options on the table and many details to discuss.

Political speak for lets try this balloon first.

16 posted on 12/06/2008 4:56:39 AM PST by org.whodat (Conservatives don't vote for Bailouts for Super-Rich Bankers! Republicans do!)
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To: Doofer
US Automakers are multinational corporations who sell and manufacture cars all over the world. Some of these cars are years ahead of American models in design and others are very gas efficient. So the question is, why aren't other nations trying to “bail out” Ford and GM? Are they having the same sales problems in other locales? Is it a problem of of LEFT (fuel economy) or the credit crisis (Car Loans)? If they close US plants can they import cars using their overseas manufacturing plants and existing dealerships?

The answer, I think, is that Congress has failed to translate the influx of money to banks to consumers to get loans, etc. The Fuel efficiency crisis may be an “American” thing as GM has very efficient cars in other nations but they are not for sale in the US. GM has their hand in other companies all over the world, but we have Congress who wants to be on TV.

Cars wear out and we have to buy them from someone, who will it be?

17 posted on 12/06/2008 7:20:22 AM PST by keving (We get the government we vote for)
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To: Eric Blair 2084

they’ll do anything except allow the use of cheaper, higher mileage, clean-burning, low engine wear gasoline that is not controlled by big oil, big gasoline, and big auto.

Schumpeter, Schumpeter, Schumpeter.

We must bow to bigness and preserve it forever, no matter how it take from regular folks.

It’s kind of like the Egyptian priesthood.

The important thing is to make the pyramids in Detroit bigger.


18 posted on 12/06/2008 8:02:36 AM PST by AmericanVictory
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To: keving

GM makes this car and it gets 113 MPG and can go 140 MPH:

http://www.flixxy.com/fuel-economy-performance-car.htm


19 posted on 12/06/2008 12:00:05 PM PST by keving (We get the government we vote for)
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