Reid seeks to lower expectations for auto bailout

Associated Press ^ | November 19, 2008 | Ken Thomas

[Zakeet]

The top Senate Democrat sought Wednesday to lower expectations for legislation this week to help endangered domestic carmakers, saying it would be the Bush administration's job to save the industry if Congress doesn't.

"The Congress need do nothing" if it can't agree on a bill to speed $25 billion in new loans to the industry, Sen. Harry Reid of Nevada told colleagues. While he told the Senate he still hoped lawmakers could agree to an auto deal in the "next day or two" of the current lame-duck session, he added: "If we can't do it here legislatively, I would hope that the secretary of Treasury would listen loud and clear because they could take this into their own hands and do what I think is appropriate from their perspective."

The rescue plan appeared stalled on Capitol Hill, even as the heads of General Motors, Ford and Chrysler returned for a second day to plead for relief and as their congressional backers urged colleagues not to punish them for past mistakes.

[Snip]

In sometimes contentious testimony, Wagoner was pressed on when GM would run out of money if the loans weren't extended.

He said he couldn't say precisely, but that the company now was burning through "$5 billion each month."

Still, with the $25 billion emergency package, "We think we have a good shot to make it through this," Wagoner said. He said he anticipated that, if the package is approved, GM would qualify for about $10 billion to $12 billion of the money.

[Snip]

The financial situation for the automakers grows more precarious by the day. Cash-strapped GM said Tuesday it would delay reimbursing its dealers for rebates and other sales incentives and could run out of cash by year's end without government aid.

[Azzurri]

These guys all donated to McCain or Romney in the past election. Their hands are basically tied due to decades of labor agreements that they had nothing to do with. The real corporate thieves are the Wall Street bandits who partied hard and donated to Democrats to keep their shenanigans under wrap. It's not clear to me why conservatives continue to run these guys down...they have made the restructuring cuts necessary to keep their business going...it was Wall Street largesse that collapsed the world around them before their efforts could take hold.

[Recovering_Democrat]

Harry Reid: Miserable Failure.

[RightWhale]

how the “Big Three” will do anything different from how they are currently operating

They can do car conversions for those who have lost their house and need a place to live for the next ten or so years. HUD can pay for the conversions and also build car-house parks in every city over 50,000.

[Fred]

Looks like the big 3 are on their own until the Olapdog shows up.