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 ...
Ahhhh. A “Government ownership stake” in corporations.
Otherwise known as National Socialism?
Damn! Here we go again! The politicians screwed up social security and the RATS are going confiscate our 401K plans & IRAs to bail out social security. Now the RATS are saying their “thank yous” to the unions for their osama votes by raiding the original bailout. Arg!
HAVEN’T GOT TIME FOR THE PAIN Lyrics
Artist(Band):Carly Simon
(Carly Simon/Jacob Brackman)
All those crazy nights when I cried myself to sleep
Now melodrama never makes me weep anymore
‘Cause I haven’t got time for the pain
I haven’t got room for the pain
I haven’t the need for the pain
Not since I’ve known you
You showed me how, how to leave myself behind
How to turn down the noise in my mind
Now I haven’t got time for the pain
I haven’t got room for the pain
I haven’t the need for the pain
Not since I’ve known you
Suffering was the only thing that made me feel I was alive
Though that’s just how much it cost to survive in this world
‘Til you showed me how, how to fill my heart with love
How to open up and drink in all that white LIGHT
Pouring down from the heaven
I haven’t got time for the pain
I haven’t got room for the pain
I haven’t the need for the pain
Not since I’ve known you
I’ll have more respect for mccotter if he opposes this bailout too. He’s from MI.
I’ll have more respect for mccotter if he opposes this bailout too. He’s from MI.
It makes no sense. How exactly is that going to bring down the price of a car that no one wants and certainly doesn’t want at that price?
Instead, it’s an incentive to keep doing what they’re doing.
Big Labor, Big Pay, Big Benefits.
Bush let Bernanke, Paulson and the democrats open up the treasury vaults and they won’t be closed until it’s empty.
Then they will demand “Congressional hearings” of the corporate executives demanding an answer to why they went bankrupt.
The combined market capitalization of GM and Ford is about $5.61 Billion.
Talk about tossing good money after bad.
Buying votes for RATS!
Buying votes for RATS!
As part of any US auto industry bailout, each participating US company will be required to produce a new car, to be named after the bailout’s architect: Barney Frank. The “Barney” must meet strict energy and design mandates: be a two door sedan without front doors and front seats. Motorists enter the Barney from the rear and drive from the back.
Let them go bankrupt.
No bailout for the UAW’s golden parachute pension plan. Which is what this really is.
Holy crap. Who spiked Boehner's Cheerios this morning?? He sounds like he is pro-capitalism here.
I'll bet the "ownership" part is that we get to own GM's pension fund.
Why don’t they just change their Corp. status to “Bank Holding Co.?”
The bailout is not for the management of the big 3 automakers.
It is for UAW. Just turn the costs of the agenda that UAW imposed upon the US-based automobile manufacturers over to the Pension Benefit Guarantee Corporation, another “government-supported enterprise”, and excuse the auto manufacturers’ corporate management from having to continue to fund these pensions. That way, GM, Ford and Chrysler can go back to the business of being manufacturers, and cease to be pension and health benefit administrators.
This would be a “transfer payment” that would actually benefit US competitively, by lifting what has been largely an “unfunded mandate” on the auto manufacturers.
The bailout is not for the management of the big 3 automakers.
It is for UAW. Just turn the costs of the agenda that UAW imposed upon the US-based automobile manufacturers over to the Pension Benefit Guarantee Corporation, another “government-supported enterprise”, and excuse the auto manufacturers’ corporate management from having to continue to fund these pensions. That way, GM, Ford and Chrysler can go back to the business of being manufacturers, and cease to be pension and health benefit administrators.
This would be a “transfer payment” that would actually benefit US competitively, by lifting what has been largely an “unfunded mandate” on the auto manufacturers.
This is the problem. We don't have any Pub leadership willing to point out the underlying problem, but instead are just trying to make sure the govt. makes money.
The problem is it costs GM 50% to 120% more to make a car than their competitors. Putting money into the company doesn't change the underlying problem of cost. The solution is obvious, cut cost.
If they want to stay in business the unions are going to have to cut salary & benefits, the retirees are going to have to cut pensions & health benefits and management will have to cut salary and options. The alternative is to declare bankruptcy and let a judge sort it out.
Michigan has the highest unemployment and lowest growth for a reason.
Does this mean I get a new Cadillac for free?
So that’s what it was about from the start. Nationalizing the biggest American industries. The biggest dogma of communism is that private ownership of the means of production is bad, and must be transferred to the government.
And that’s what the dems are doing. And Bush helped them.
test
And I suppose all the unions will get what they demand...bailout for 100% retirement and medical
And whatever else they want.
And I suppose all the unions will get what they demand...bailout for 100% retirement and medical
And whatever else they want.
Every Republican should vote against every bad piece of legislation that is put forth from these dopes. Do not be attached to anything from them.
I was thinking how no one buys the bailout B.S. now. “Wolf” has been cried too many times. If any of the investors thought a bailout would help, the stock market wouldn’t be tanking so badly.
Well, the Commies do have cover for their bad decision making, at least until Jan. 20, 2009; blame it on Bush.
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
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