Bush changes mind, may save auto giants

Politico ^ | | 12/12/08 9:36 AM EST | By MIKE ALLEN

[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."

[bronxboy]

The point is not if the contracts are workable. I have no doubt they will be changed, but whether Gettlefinger could change the contracts personally. He can’t. The GOP new this. This is why people in my area are so angry. It was disingenuous and showed they were not really trying to reach and agreement. The White House studied the laws which is why this was placed in the loan agreement as a target.

[gogeo]

The point is not if the contracts are workable. I have no doubt they will be changed, but whether Gettlefinger could change the contracts personally. He can’t. The GOP new this. This is why people in my area are so angry. It was disingenuous and showed they were not really trying to reach and agreement. The White House studied the laws which is why this was placed in the loan agreement as a target...

New to what? Dealing with the Almighty UAW?

No one is asking Gettelfinger to agree to anything anymore. No serious person expects any kind of cooperation from the UAW.

I suspect at some point they will be told how it will be. The choice then will be simple...they are either with the program, or not...and the public is watching.

Most of the public doesn't know or care about the UAW. That's changing...and the impression is not a good one.