Posted on 12/12/2008 7:04:08 AM PST by meandog
Bush changes mind, may save auto giants
Facing the potential bankruptcy of iconic American firms, President Bush on Friday abandoned his longstanding objection to using using the Wall Street bailout fund to help save G.M., Ford and Chrysler.
A frustrated Republican congressional official said: "If only they had said this last week, we could have saved ourselves a full week."
Ten hours after the Senate rejected a separate lifeline for the automakers, White House Press Secretary Dana Perino said in a statement it would be "irresponsible" to let the companies crash. So she said Bush will "consider other options," including the $700 billion Troubled Assets Relief Program that Congress created for the Treasury Department in October.
"Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms," Perino said in a statement. "However, given the current weakened state of the U.S. economy, we will consider other options if necessary – including use of the TARP program — to prevent a collapse of troubled automakers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."
(Excerpt) Read more at politico.com ...
bttt
oh sh!t that pic was funny!
Not true-many plants have been shut down. A few were turned in to Condos (Tarrytown New York). However, the vast amount sit empty. This is a popular misconception that someone will step in and begin the auto industry anew. It has never happened and will never happen. If the big three go away, the US has lost the domestic auto industry forever. Don’t expect the transplants to hang around long if this occurs. They are already releasing statements about how their North American operations are threatened by a big three bankruptcy...gives them a good reason to leave in my opinion.
“Just as the Eastern Europeans realized that Communism was a failure, we need to realize that our Free Trade/Globalist policies are failures. The American economy needs to be re-Americanized”
That may be the smartest thing I’ve read in a long time.
Sen. Corker did not add the date thing which killed the compromise. This was added by the Southern GOP Sen. who are beholden to the foreign transplants. The big three union is already taking big pay cuts, the big issue is legacy costs. The workers are at the same level already unless you add the legacy costs and divide by the number of active workers only. You know the government will assume pension responsibilities for these costs. In 2011, the union takes over this responsibility and have already agreed to take equity rather than cash. This is a best case scenario for taxpayers. Ah but why you ask can’t they do this now...the answer is there are laws which govern pension responsibilities; it must be done through the judicial system. The UAW is in court now working on this. This is a very complicated issue, but the bottom line is this’ do we want to manufacture goods in this country?’ I say yes.
I agree with you - I think the people orchestrating the “bailouts” are proceeding with that in mind.
However, I think the thing is being sold to the sheeple by subtly and not so subtly implying that bankruptcy is equivalent to disappearance.
“We’ve got to SAVE the automakers.” As if bankruptcy would mean that they would disappear.
don’t take a genius does it?..Americans may wake up to that fact, but millions of legal immigrants and illegals still benefit from it ..
and lets face it Bush wants them here to vote.
rarely in history a countries leaders sold the wealth of the nation in such a bold display of treason that none shall even call it such.
Well said....the fact that a lot of this Free Trade has pretty much stripped wealth from America
I get a bigger kick out of those continuing to justify Free Trade and Globalism. There was one talk show host (who is quite popular on FR) claiming that “FDR was a protectionist”
Oh my....FDR was the one that got this whole thing started....I guess everyone forgot about Bretton Woods and the other global economic meetings FDR had during WW II
Oh, and that “PROTECTIONIST” term....the term used by FTs/Globalists when they cant come up w plausible reasons to continue the current American wealth diaspora. Of course, many FTs/Globalists are quite protectionist for Communist China, Mexico, and others, with their FT/Globalist agenda
Well done. You hit all of the liberal talking points.
Welcome to FR.
Sorry, my facetiousness-meter must’ve been on the fritz due to the seething anger I’m feeling over my president selling out my children for a bunch of whining car big-wigs and union thugs. You’re right, there’s nothing about a bail-out that fixes the self-inflicted gaping open sores that exist within the US auto manufacturers. Either capitalism and free markets are resilient or not—right now, our government is acting like none of them believe in the free markets anymore.
They have no faith in our ability to create new jobs, new wealth, new industries...which is a sad day. Their gloom and doom responses are disheartening and a little bit frightening. “We’re going to have riots...” Geez...what do they know that they’re not telling us?
I did? You mean, I put out the Bush White House talking points on why we need all these bailouts?
Let them file Chapter 11 so they can restructure their contracts, INCLUDING THE UAW CONTRACTS, that are bankrupting these companies.
Hey look at K-Mart, they filed, restructured, (closed some stores) and they are fine now.
The UAW is bankrupting the Big 3 as well as the fact that banks are not loaning people $$ to buy cars. Dealers are screaming because they are turning sales away because of the banks not lending.
This post, and the majority of your posting history says one thing.
TROLL!
I agree. My FU emails will increase no doubt. Free traders promised America that we would not lose jobs...We lost jobs. Now they tell us we don’t need those jobs anyway. The free trade globalists have much to answer for-they not only were wrong, they lied through their teeth and refused to admit their many mistakes. ‘Illegals take jobs America won’t do’...tell that to the thousands of Americans seeking jobs who lined up at a chicken plant in GA after the illegal workers were arrested. ‘We will be the idea people.’Tell that to Techies . who have lost many jobs to H1B visa holders who are needed to to do the jobs America is to stupid to do according to free traders like Gates of Microsoft. There are liars, damn liars and then the liars of free trade fame who have bankrupted this country.
No problem.
We appear to be firmly on the same side on this one.
I, for one, am stocking up on non-perishable food and ammunition.
There are only so many “industries” which can be “bailed out” before our entire country collapses.
The current and may I add, the future occupant of the Oval Office have no minds.
“We need to revive manufacturing”
Manufacturing does quite well when Big Brother manipulators get out of the way.
“The auto industry is essential to this country”
The Auto industry is NOT sacrosanct...it survives Only if the consumers freely support THE PRODUCT IT MAKES..and for a while now the consumer does not! Manufacturers need to throw off the burdens of unionized parasites AND RIDICULOUS GOVERNMENT REGS so they can have a chance to revive themselves.
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