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Democrats at work to tap bailout for automakers(maybe republicans can learn from pain)
yahoo ^ | November 13,2008 | KEN THOMAS, Associated Press Writer Ken Thomas, Associated Press Writer – 5 mins ago

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 ...


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
KEYWORDS: 110th; automakers; bailouts; bigthree; ford; generalmotors; help; manufacturing
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Inspiring I guess. Pelosi has one hell of a nerve to try this after Financial Bailout political trap GWB and her setup for republicans. Does she need many republicans for this?
1 posted on 11/13/2008 11:03:49 AM PST by sickoflibs
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To: sickoflibs

Ahhhh. A “Government ownership stake” in corporations.

Otherwise known as National Socialism?


2 posted on 11/13/2008 11:06:16 AM PST by WayneS (HELP! My beloved Commonwealth is becoming MARYLAND!)
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To: sickoflibs

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!


3 posted on 11/13/2008 11:07:25 AM PST by lilylangtree (Veni, Vidi, Vici)
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To: sickoflibs

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


4 posted on 11/13/2008 11:07:53 AM PST by Red Badger (Hey! Look on the bright side! At least Joe Biden is out of the Senate!..........)
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To: sickoflibs

I’ll have more respect for mccotter if he opposes this bailout too. He’s from MI.


5 posted on 11/13/2008 11:09:26 AM PST by ari-freedom (So this is how Liberty dies... with thunderous applause)
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To: sickoflibs

I’ll have more respect for mccotter if he opposes this bailout too. He’s from MI.


6 posted on 11/13/2008 11:09:42 AM PST by ari-freedom (So this is how Liberty dies... with thunderous applause)
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To: sickoflibs

Related...

http://exposingtheleft.blogspot.com/2008/11/big-three-woes.html


7 posted on 11/13/2008 11:09:52 AM PST by traderrob6
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To: sickoflibs; P-Marlowe

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.


8 posted on 11/13/2008 11:10:48 AM PST by xzins (Retired Army Chaplain Pro Deo et Patria)
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To: sickoflibs

Bush let Bernanke, Paulson and the democrats open up the treasury vaults and they won’t be closed until it’s empty.


9 posted on 11/13/2008 11:10:58 AM PST by AU72
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To: sickoflibs
Maybe the dems could bypass the companies and send the money straight to the unions?
10 posted on 11/13/2008 11:12:24 AM PST by SwinneySwitch (ObamaNation - beyond your expectations.)
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To: sickoflibs
Just a question...Since no one can afford to buy cars, why are we bailing out companies that make cars? Are we all going to end up with a new car in every driveway as a gift from Obama?
11 posted on 11/13/2008 11:14:10 AM PST by Dixie Yooper (Ephesians 6:11)
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To: sickoflibs
Maybe the dems could bypass the companies and send the money straight to the unions?(/s)
12 posted on 11/13/2008 11:14:32 AM PST by SwinneySwitch (ObamaNation - beyond your expectations.)
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To: sickoflibs
They will give them the money and then demand they build cars that are 3-way hybrid, 67 mpg, zero polluting, uglier than sin, homo-friendly, bio-fueled with 31 airbags, no AC, a radio that is locked to the Obama channel, 53 mph max speed and sell them for $3,117.

Then they will demand “Congressional hearings” of the corporate executives demanding an answer to why they went bankrupt.

13 posted on 11/13/2008 11:15:04 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: sickoflibs
Maybe the dems could bypass the companies and send the money straight to the unions?(/s)
14 posted on 11/13/2008 11:15:24 AM PST by SwinneySwitch (ObamaNation - beyond your expectations.)
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To: sickoflibs

The combined market capitalization of GM and Ford is about $5.61 Billion.

Talk about tossing good money after bad.


15 posted on 11/13/2008 11:15:45 AM PST by Jacquerie (All Muslims are suspect.)
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To: sickoflibs

Buying votes for RATS!


16 posted on 11/13/2008 11:16:19 AM PST by Logical me (Oh, well!!!)
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To: sickoflibs
Maybe the dems could bypass the companies and send the money straight to the unions?(/s)
17 posted on 11/13/2008 11:16:36 AM PST by SwinneySwitch (ObamaNation - beyond your expectations.)
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To: sickoflibs

Buying votes for RATS!


18 posted on 11/13/2008 11:17:07 AM PST by Logical me (Oh, well!!!)
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To: sickoflibs

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.


19 posted on 11/13/2008 11:20:31 AM PST by Bertha Fanation
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To: sickoflibs

Let them go bankrupt.

No bailout for the UAW’s golden parachute pension plan. Which is what this really is.


20 posted on 11/13/2008 11:21:09 AM PST by Argus (Stuff Compassionate and Maverick - just try plain old CONSERVATISM again)
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To: sickoflibs
"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.

Holy crap. Who spiked Boehner's Cheerios this morning?? He sounds like he is pro-capitalism here.

21 posted on 11/13/2008 11:21:29 AM PST by Recovering_Democrat
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To: sickoflibs
in exchange for a government ownership stake in Detroit's car companies.

I'll bet the "ownership" part is that we get to own GM's pension fund.

22 posted on 11/13/2008 11:21:32 AM PST by j. earl carter
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To: sickoflibs
Jorge will sign anything that makes him able to spend more. He is addicted to spending as a "crack-ho" is to crack.
23 posted on 11/13/2008 11:24:36 AM PST by org.whodat ( "the Whipped Dog Party" , what was formally the republicans.)
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To: sickoflibs

Why don’t they just change their Corp. status to “Bank Holding Co.?”


24 posted on 11/13/2008 11:25:48 AM PST by Boiling Pots (Time to dump Bush/McCain "conservatism" in the trash heap of history.)
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To: sickoflibs

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.


25 posted on 11/13/2008 11:28:06 AM PST by alloysteel (Molon labe! Roughly translated, "Come and take them!" referring to personal weapons.)
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To: sickoflibs

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.


26 posted on 11/13/2008 11:28:52 AM PST by alloysteel (Molon labe! Roughly translated, "Come and take them!" referring to personal weapons.)
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To: sickoflibs
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?"

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.

27 posted on 11/13/2008 11:30:32 AM PST by wmfights (Elections have Consequences!)
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To: sickoflibs

Does this mean I get a new Cadillac for free?


28 posted on 11/13/2008 11:32:25 AM PST by razorback-bert (Save the planet...it is the only known one with beer!)
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To: sickoflibs
This is ridiculous.
29 posted on 11/13/2008 11:36:00 AM PST by Eric in the Ozarks
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To: sickoflibs
With the add on to the title, I was wondering if Republicans needed to learn to apply for a bail-out of their own.
30 posted on 11/13/2008 11:36:39 AM PST by garyb
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To: sickoflibs
Does piglosi need the GOP for anything? Not unless some of her own cross party lines, and I am told she makes the tow the line. If not they go to the shed for a beating, or loose their chairmanship.
31 posted on 11/13/2008 11:37:57 AM PST by Cheerio (Barack Hussein 0bama=The Complete Destruction of American Capitalism)
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To: sickoflibs

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.


32 posted on 11/13/2008 11:38:27 AM PST by Leftism is Mentally Deranged (liberalism = serious mental deficiency)
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test


33 posted on 11/13/2008 11:42:27 AM PST by Roscoe Karns
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To: sickoflibs

And I suppose all the unions will get what they demand...bailout for 100% retirement and medical

And whatever else they want.


34 posted on 11/13/2008 11:49:44 AM PST by soycd
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To: sickoflibs

And I suppose all the unions will get what they demand...bailout for 100% retirement and medical

And whatever else they want.


35 posted on 11/13/2008 11:54:59 AM PST by soycd
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To: sickoflibs
Normally I'd say no to any bailouts, but after Bush and the pubbies went along to rescue their fatcat friends, it would take gall to save Wall Street and let Main Street fail.
36 posted on 11/13/2008 11:56:08 AM PST by E. Cartman (Will Bush, Bernanke or Paulson let Uncle Sam handle their personal wealth?)
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To: sickoflibs
Normally I'd say no to any bailouts, but after Bush and the pubbies went along to rescue their fatcat friends, it would take gall to save Wall Street and let Main Street fail.
37 posted on 11/13/2008 11:56:39 AM PST by E. Cartman (Will Bush, Bernanke or Paulson let Uncle Sam handle their personal wealth?)
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To: sickoflibs

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.


38 posted on 11/13/2008 11:57:04 AM PST by rlferny
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To: sickoflibs
I'd tell them NUTS...unless these Company's can show why this isn't throwing good money after bad. Have the business plan and Union Concessions in hand....then we talk.
39 posted on 11/13/2008 11:58:54 AM PST by DAC21
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To: sickoflibs

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.


40 posted on 11/13/2008 11:59:26 AM PST by austinaero
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To: sickoflibs
Pelosi has one hell of a nerve to try this after Financial Bailout political trap GWB and her setup for republicans.

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?

41 posted on 11/13/2008 12:01:00 PM PST by pnh102 (Save America - Ban Ethanol Now!)
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To: sickoflibs

This is not a bailout for the auto makers. It’s a bailout for the unions.


42 posted on 11/13/2008 12:06:46 PM PST by kempo
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To: sickoflibs

Well, she’s gotta pay off the unions for their support of Obama.


43 posted on 11/13/2008 12:09:28 PM PST by mvpel (Michael Pelletier)
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To: sickoflibs
Boehner has it exactly right. A bailout package designed by Reid and Pelosi will be the legislative equivalent of putting a smiley face bandaid on a lacerated artery.

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.

44 posted on 11/13/2008 12:11:18 PM PST by blau993 (Fight Gerbil Swarming)
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To: sickoflibs

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.)


45 posted on 11/13/2008 12:17:51 PM PST by griswold3
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To: sickoflibs

Somebody was saying that GWBush set out to destroy the GOP. It sure seems that way especially in the last 2 years.


46 posted on 11/13/2008 12:18:14 PM PST by eleni121 (EN TOUTO NIKA!! +)
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To: sickoflibs

Why tap into the fund? Why not just cough up another $700 billion?


47 posted on 11/13/2008 12:19:18 PM PST by stevem
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To: sickoflibs

This should have a number of replies? But they are not showing


48 posted on 11/13/2008 12:29:02 PM PST by bronxboy
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To: sickoflibs

ping test


49 posted on 11/13/2008 12:38:12 PM PST by sickoflibs ( Those who don't learn from (real big) mistakes are losers forever)
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To: sickoflibs

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


50 posted on 11/13/2008 12:38:26 PM PST by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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