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 ...
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.
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