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Reid seeks to lower expectations for auto bailout
Associated Press ^ | November 19, 2008 | Ken Thomas

Posted on 11/19/2008 9:49:57 AM PST by 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.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: Michigan
KEYWORDS: 110th; automakers; bailouts; reid; unionmadejunk
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Auto industry executives, from left, General Motors Chief Executive
Officer Richard Wagoner; Chrysler Chief Executive Officer Robert
Nardelli; and Ford Chief Executive Officer Alan Mulally

Article Summary: Even the dumbest of Rats is beginning to realize the bailout is a sorry idea. Therefore, they appear to be falling back to Plan-B -- stall for now and hope the Big-3 go bust before Barry takes office -- and in any case, lay off the entire blame on Bush and the Pubbies.

1 posted on 11/19/2008 9:49:59 AM PST by Zakeet
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To: Zakeet

Aspiring welfare queens from left, General Motors Chief Executive Officer Richard Wagoner; Chrysler Chief Executive Officer Robert Nardelli; and Ford Chief Executive Officer Alan Mulally

2 posted on 11/19/2008 9:53:18 AM PST by pnh102 (Save America - Ban Ethanol Now!)
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To: Zakeet

They realize the GOP will filibuster-must punish those pesky unions and the Mid West. They have to wait for Pres.Obama before enacting a bailout. The Dems are smart enough to know that if GM fails before this, the economic chaos will be blamed on the GOP.


3 posted on 11/19/2008 9:53:27 AM PST by bronxboy
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To: Zakeet
Senator Reid: lower expectations to the shareholders and general public (auto consumers, etc.) and higher expectations for the United Auto Workers.

After all, the payment, I mean payback, is now due, eh?

4 posted on 11/19/2008 9:54:10 AM PST by vox_freedom (G K Chesterton: "If there were no God, there would be no atheists.")
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To: Zakeet

Ford will make it through this. GM and Chrysler? Will have to file for bankruptcy.

That’s a good thing though.

Not a dime of my money for corporate welfare!

And a nice side effect is that all of the UAW goons who would never vote for a Republican will be out of work, and Michigan will become even more of a third world country than it is now.

Becoming exhibit A of: What Liberalism does for you.


5 posted on 11/19/2008 9:54:10 AM PST by rom (Voted for Ron Paul in the primary. Voted against Obama in the general and FOR Palin.)
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To: Zakeet

Dingy Harry, the most important Senator of all time, unable to get his will rammed through a ‘Rat Senate, LOL.


6 posted on 11/19/2008 9:54:35 AM PST by Paladin2 (No, pundits strongly believe that the proper solution is more dilution.)
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To: Zakeet

the big 3 should save themselves. It’s not just about the unions; the Big 3 feels they can do whatever they want and congress will always come to the rescue because they are too important to fail.


7 posted on 11/19/2008 9:56:33 AM PST by ari-freedom (So this is how Liberty dies... with thunderous applause)
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To: Zakeet

1. There is no way on earth this will not be blamed on Republicans, no matter what. The ONLY exception is if they pull themsleves out of the problem with no bailout. Then The One gets the credit.

2. Has anyone heard ONE WORD regarding how the “Big Three” will do anything different from how they are currently operating to stop the hemorraging of cash?


8 posted on 11/19/2008 10:02:55 AM PST by subterfuge (BUILD MORE NUCLEAR POWER PLANTS NOW!!!)
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To: 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.

I think Reid is getting the message that Americans are tired of bail outs and this is why he is now hedging his bets. The fact that he is more concerned with the voters than his overarching principles demonstrates a true lack of leadership on his part. Of course, in usual fashion, if Congress does not pass a $25B bailout, then it will be Bush's fault!

9 posted on 11/19/2008 10:02:57 AM PST by mlocher (USA is a sovereign nation)
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To: rom
Not a dime of my money for corporate welfare!

Remember back in the day when Republicans would criticize social spending and the Democrats would counter that run away social spending was OK because Republicans supported "corporate welfare"? Don't hear that much any more.

10 posted on 11/19/2008 10:03:48 AM PST by Poison Pill
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To: Zakeet

Let’s see here, Waggoner says GM is burning through about $5 billion a month and that they would qualify for $10 to $12 billion of the $25 billion bailout. I didn’t do too well in high school algebra but by my calculations that means GM lives another 2.4 months, at best.

So Mr. Waggoner you’re going to return GM to profitability in 2.4 months when you’ve been in the red for how many years now?

This is just too surreal.


11 posted on 11/19/2008 10:10:39 AM PST by technically right
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To: Zakeet

They hear their constituents screaming “NO BAILOUT” but their union buddies are screaming the exact opposite. They are punting the issue into the next quarter..........


12 posted on 11/19/2008 10:10:41 AM PST by Red Badger (Never has a man risen so far, so fast and is expected to do so much, for so many, with so little...)
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To: Zakeet
Wagoner was pressed on when GM would run out of money

This is the only real question any Democrat on the hill wants to know. Translation: Will we have the president when the music stops?

13 posted on 11/19/2008 10:11:32 AM PST by Poison Pill
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To: Zakeet

Why don’t these clowns go to the banks for loans, seeing as the banks have just been given tons of cash to work with.


14 posted on 11/19/2008 10:14:25 AM PST by Cementjungle
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To: Red Badger
They hear their constituents screaming “NO BAILOUT” but their union buddies are screaming the exact opposite. They are punting the issue into the next quarter..........

Silly Democrat voters think they have some value to their masters other than helping them slime into positions of power. Once entrenched, Democrat voters are only useful for photo ops and NYT polls demanding more government power.

15 posted on 11/19/2008 10:14:40 AM PST by aWolverine
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To: Zakeet
The whole bunch should be at a parole hearing instead.
16 posted on 11/19/2008 10:26:01 AM PST by org.whodat (Conservatives don't vote for Bailouts! Republicans do!)
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To: Zakeet
Whats Wrong with using the $25 Billion already earmarked as GWB suggested.. ??

This is a Spin by the Rats so they can say:

“We inherited a crisis much worse than expected and so we must do this and that “

..blah blah f***ing blah..

BTW was it not GM who Killed the electric EV1 ??

17 posted on 11/19/2008 10:32:36 AM PST by Eagle50AE (Pray for our Armed Forces.)
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To: subterfuge
"1. There is no way on earth this will not be blamed on Republicans, no matter what. The ONLY exception is if they pull themsleves out of the problem with no bailout. Then The One gets the credit."

How can you blame the Bush Administration for people refusing to purchase Detroit automobiles??? I have NEVER purchases and American car because I know some union hack has his payoff embedded in the price. My car cash goes straight to Stutgart, Germany.
18 posted on 11/19/2008 10:40:57 AM PST by LetsRok
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To: bronxboy

No they think that driving all American manufacturing under will be great for environment.


19 posted on 11/19/2008 10:44:55 AM PST by alex
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To: LetsRok

How can you blame the Bush Administration for people refusing to purchase Detroit automobiles??? I have NEVER purchases and American car because I know some union hack has his payoff embedded in the price. My car cash goes straight to Stutgart, Germany.
**********************************************
Interesting take on the idea that it is patriotic to buy American cars. But at some point, as you suggest, the only honest vote left to us is the indirect vote we make with our dollars. This vote can be manipulated. We should use it.


20 posted on 11/19/2008 10:51:51 AM PST by Anima Mundi
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