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Put aside political double standards; Detroit automakers need bridge loan
mccotter.house.gov ^ | November 26, 2008 | Rep. Thaddeus McCotter

Posted on 11/26/2008 2:46:07 PM PST by ari-freedom

Back home after the congressional circus recessed with no relief for the working men and women of America's auto industry, I was driving past a Detroit assembly plant when Bob Seger blared from my speakers: "The big line moved one mile an hour So loud it really hurt The big line moved so loud It really hurt Back in '55 We were makin' Thunderbirds..." It wasn't the "big line" that was so loud it really hurt during the House and Senate hearings on the auto industry's bridge loan. What hurt were the condemnations and ridicule both political parties, late night talk shows and even "Saturday Night Live" delivered at the expense of America's auto industry. Implicit in their attacks was an inexplicable ignorance of the human cost we've endured throughout our auto industry's painful restructuring.

(Excerpt) Read more at mccotter.house.gov ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: automotive; bailout; bloodsuckers; chrysler; congress; ford; gm; obama; socialism; tobigtofail; uaw; unions
McCotter supports the auto bailout (watch him on the Fox Business channel)
1 posted on 11/26/2008 2:46:07 PM PST by ari-freedom
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To: ari-freedom
Is there not one pubbie who is willing to stand on principle and is capable of expressing WHY he is standing on principle?

McCotter sounded so good during the Socialist Bail-out bill debacle but it seems when the shoe is on the other foot, his principles don't mean much.
2 posted on 11/26/2008 2:48:51 PM PST by SoConPubbie (GOP: If you reward bad behavior all you get is more bad behavior.)
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To: SoConPubbie

he sounded good on the other bailout because he’s a populist against Wall Street and not because he’s a conservative in favor of the free market.


3 posted on 11/26/2008 2:52:42 PM PST by ari-freedom (No more candidates from 2008!)
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To: ari-freedom
It is a freaking loan. The government helped create the mess, with their regulation, so a loan is not out of order. The bail outs for the banks is just a tragic waste of money, but for some reason it is ok because bankers don't get their fingernails dirty.
4 posted on 11/26/2008 2:54:41 PM PST by Mark was here (The earth is bipolar.)
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To: Mark was here

Another freaking subprime loan.

Let’s give them a loan but only when they cut their dealers (GM has 7000 vs less than 1500 for Toyota) and cut wages and perks so they are in line with what other car companies pay their workers in right to work states.


5 posted on 11/26/2008 2:59:17 PM PST by ari-freedom (No more candidates from 2008!)
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To: ari-freedom
There is now, only NOW, 7.6 trillion tax dollars on the beggars' street in bailouts. For 300 million inhabitants of the US, that's $25,333.33 EACH. Discounting a third for old and young not earning taxable wages, add half of the remaining for those that actually get tax rebates on taxes they never paid, and the actual bill comes to $76,000 for each taxpaying American. Just exactly how many of us tax paying Americans make that kind of cash they can piss away on a temporary bailout.

This bailout trend will far EXCEED the US GDP and it will irreparably sink us into fourth-world status, if the Chicoms don't subsume us first. Hey Illegals, hey minorities, hey special interest butt pirates......how do you think the Chicoms are gonna treat you?

6 posted on 11/26/2008 2:59:37 PM PST by Gaffer
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To: SoConPubbie

I’m not a fan of a bailout but failure will bring disaster to the nations far greater than letting those banks fail. I wish it were simple but unfortunately it isn’t.

There are 3 parties that need to work something out. The UAW needs to work on a cheaper contract, the companies need to learn to run a business and the government needs to stop imposing regulations on them.

I’ve lived here all my life and seen my state go from an industrial powerhouse to a 3rd world basket case. The saddest thing is that all attempts to harm the union only results in more non union jobs being sent across the borders.


7 posted on 11/26/2008 3:01:16 PM PST by cripplecreek (The poor bastards have us surrounded.)
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To: Mark was here
It is a freaking loan. The government helped create the mess, with their regulation, so a loan is not out of order. The bail outs for the banks is just a tragic waste of money, but for some reason it is ok because bankers don't get their fingernails dirty.

A loan using my tax dollars.

Let them do Chapter 11.

They got themselves into this mess, let them get themselves out.
8 posted on 11/26/2008 3:09:53 PM PST by SoConPubbie (GOP: If you reward bad behavior all you get is more bad behavior.)
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To: cripplecreek
I’m not a fan of a bailout but failure will bring disaster to the nations far greater than letting those banks fail. I wish it were simple but unfortunately it isn’t.

There are 3 parties that need to work something out. The UAW needs to work on a cheaper contract, the companies need to learn to run a business and the government needs to stop imposing regulations on them.

I’ve lived here all my life and seen my state go from an industrial powerhouse to a 3rd world basket case. The saddest thing is that all attempts to harm the union only results in more non union jobs being sent across the borders.


Having said all that and given that the Democrats will be leading the charge on this and that the only rational fix to this problem is to adjust union salaries downward to match competitors costs, do you really think this will work?

Do you really think the real problem will be resolved with this process?
9 posted on 11/26/2008 3:12:02 PM PST by SoConPubbie (GOP: If you reward bad behavior all you get is more bad behavior.)
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To: SoConPubbie

No but it’s what I would demand if I were king.


10 posted on 11/26/2008 3:14:52 PM PST by cripplecreek (The poor bastards have us surrounded.)
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To: ari-freedom
he sounded good on the other bailout because he’s a populist against Wall Street and not because he’s a conservative in favor of the free market.

Well, color me surprised.

OTOH, I am in favor of Free Markets as long as they are FAIR markets where trading partners are held accountable for violating the tenants of Free, Open, Fair, Unfettered, and non-goverment propped-up industries.
11 posted on 11/26/2008 3:15:46 PM PST by SoConPubbie (GOP: If you reward bad behavior all you get is more bad behavior.)
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To: SoConPubbie
Put aside political double standards; Detroit automakers need bridge loan

No, they need a repeal of the law that allows people selling labor to collude and fix prices.
12 posted on 11/26/2008 3:16:41 PM PST by aruanan
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To: ari-freedom

A loan requires payback and it also means interest - do people really think that these companies will be able to pay back the loan when they burn through Billions/Month as is? If they don’t correct the Fundamental problems within the company they are just prolonging the inevitable


13 posted on 11/26/2008 3:17:06 PM PST by Lilpug15 (I'm Moving to Alaska...You can Keep THE CHANGE!)
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To: ari-freedom

When my Malibu needed all new plugs and wiring after 40,000 miles, I called the the dealership and complained that it wasn’t supposed to require a tune-up for 100,000 miles. They told me to call GM. I did and they said that their warranty wasn’t a warranty only a “guideline”. I just found out that there is a class action suit because their “Dexron” coolant didn’t work and caused engines like mine to blow mainifold gaskets which led to the need for new wiring and plugs.

They knew about the problems for years, but they let cars blow up because it was after their 36,000 mile warranty. The dealerships made money fixing the problems that GM created.

I will die without ever buying another Detroit made car. They should let the crap creators get loans from banks like everyone else. If they can’t, buh-bye.


14 posted on 11/26/2008 3:23:48 PM PST by Soliton (This 2 shall pass)
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To: ari-freedom

I am extremely disappinted in Rep. McCotter. The hero in the fight against the invading Socialist hoardes, at the Battle of TARP, has become a turncoat and joined the enemy in the Battle of the Detroit 3.

If the Detroit 3 were viable, the private sector would rush in to invest.

After going through Chapter 11 and getting out from under the oppressive UAW contracts, the Detroit 3 might be viable. But, but any taxpayer dollars ‘loaned’ to them, without under the status quo will only delay the inevitable and has zero chance of ever being repaid.


15 posted on 11/26/2008 3:26:02 PM PST by Above My Pay Grade
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To: ari-freedom

They have the hubris to expect a loan without stating how they intend to improve their business and repay the loan.

Buy Toyota, Honda and Nissan.


16 posted on 11/26/2008 3:28:44 PM PST by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: Mark was here

If all the Detroit 3 need is a loan, the UAW pension fund has more than enough to take over and bailout the Detroit 3.

If the UAW moochers are not willing to bet their pensions on the Detroit 3, with fabulous wealth as the payoff if it works out, why should the American taxpayers be willing to gamble their tax dollars, with no potential reward.

NO MORE BAILOUTS!


17 posted on 11/26/2008 3:32:02 PM PST by Above My Pay Grade
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To: SoConPubbie

well you can’t say “I’m going to be a socialist if everyone else is doing it anyway.” You have to show leadership and set an example to the rest of the world.
That’s what I like about Sanford. He kept his term limits pledge instead of saying “when in Rome, do as the Romans do.”


18 posted on 11/26/2008 3:33:16 PM PST by ari-freedom (No more candidates from 2008!)
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To: ari-freedom

They need to shed the unions and to go bankrupt regarding those pensions as well.


19 posted on 11/26/2008 3:33:58 PM PST by A CA Guy ( God Bless America, God bless and keep safe our fighting men and women.)
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To: Above My Pay Grade

I think he lost his chance to become a national conservative leader.


20 posted on 11/26/2008 3:34:20 PM PST by ari-freedom (No more candidates from 2008!)
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To: ari-freedom

Someone p[ointed out on Hannity yesterday that the current value of the stock in all three companies was about $7 billion. Far less than the cost of “bailout”.
Maybe someone needs to step up and buy the companies on the basis of NO MORE UNION CONTRACTS.


21 posted on 11/26/2008 3:42:16 PM PST by ridesthemiles
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To: ari-freedom

Bridge to what? A span that ends out in the middle of the water is called a pier, not a bridge. And the financial instrument the auto manufacturers are asking for is properly termed a “pier loan”. We can debate whether or not to give it to them, but first we should be honest about what “it” is.


22 posted on 11/26/2008 3:42:52 PM PST by GovernmentShrinker
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To: cripplecreek

There are 3 parties that need to work something out. The UAW needs to work on a cheaper contract, the companies need to learn to run a business and the government needs to stop imposing regulations on them.

IMO, you are dean on on all three counts.


23 posted on 11/26/2008 3:43:35 PM PST by ridesthemiles
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To: ridesthemiles

IMO, you are dean on on all three counts.””
DEAD ON...


24 posted on 11/26/2008 3:44:13 PM PST by ridesthemiles
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To: ari-freedom
I cannot recall the last time GM, Ford or Chrysler gave me a car. Screw 'em.

It's not my fault they let the unions run over them and couldn't figure out how to build a car lots of people wanted to buy.

25 posted on 11/26/2008 3:49:06 PM PST by muir_redwoods (B. O. Stinks!!!)
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To: cripplecreek

Maybe the automakers should re-organize as banking firms, then the government would literally throw money at them. It works well for Citicorp.


26 posted on 11/26/2008 3:50:56 PM PST by factoryrat (Better living through American Industrial Might.)
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To: GovernmentShrinker

a bridge to nowhere


27 posted on 11/26/2008 3:51:23 PM PST by ari-freedom (Turkeys belong on the Thanksgiving table, not in the White House.)
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To: ari-freedom

No they don’t. They are going to take that money out of the country to build cars in foreign countries. It is another wealth redistribution act for the globalists.


28 posted on 11/26/2008 3:51:57 PM PST by hedgetrimmer
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To: ari-freedom

Et tu, McCotter.

No one in DC is willing to stand for principle when the going gets tough. An auto bailout would provide some short-term relief in return for more long-term pain, which is the kind of expediency that got us into these multiple disasters in the first place.


29 posted on 11/26/2008 3:52:40 PM PST by quesney
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To: ari-freedom
Put aside political double standards; Detroit automakers need bridge loan

The Detroit Three (NO LONGER the "Big Three") are gonna' get
their loans/aids/taxpayer dollars.

The Dems simply put Wagoner/Mullaley/Nardelli through a show-trial
to create DVD material that will sell well in UAW homes.
(If the Dems really cared about America's industrial strength,
they'd have called these execs AND THE UAW to testify on live
TV years ago.)

They'll get their money. And in reality, NONE of them should
get a single red cent.
Except they are "too big to fail".
Even if they are shriveled images of what they were fifty years ago.
30 posted on 11/26/2008 3:59:31 PM PST by VOA
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To: ari-freedom

IMHO, the people of this country shouldn’t give one damn cent to anyone of these industries that are part of this $700 Billion bailout. This bailout should not exist in the first place. If these corporations make stupid decisions that cause their demise, let them fall. They have no one to blame but themselves for their poor judgement. They can’t blame the government, the unions, the markets, the economy, or any other scapegoat. Let them all fail. None of them are too big to fail. Maybe then they can take their hard learned lessons and come up with some better ideas for developing more robust industries.


31 posted on 11/26/2008 4:11:18 PM PST by factoryrat (Better living through American Industrial Might.)
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To: hedgetrimmer

They already relocated most of their suppliers out of the country. Ford and GM subsidiaries actually do pretty well in Europe, Asia, and Australia. It might be a wise move for them. Liquidate their assets in the U.S., kick 1/10th of the U.S. workforce to the curb, dump their pensions in Uncle Sam’s lap, and laugh their asses off as they prosper in more industry hospitable countries.


32 posted on 11/26/2008 4:22:59 PM PST by factoryrat (Better living through American Industrial Might.)
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To: ari-freedom
Let’s give them a loan but only when they cut their dealers (GM has 7000 vs less than 1500 for Toyota)

Bankruptcy is the only way to reduce the number of dealers and brands.

When GM discontinued its Oldsmobile brand, a huge number of Olds dealers sued GM and have been paid more than $1 billion so far.

The lawsuits over reducing dealers and brands would swamp GM.

Bankruptcy is the only viable option for GM. There is nothing else that makes any sense anymore.

33 posted on 11/26/2008 4:30:04 PM PST by NoControllingLegalAuthority ((Barack Obama...stuck on stupid and idle as the world races by him like a bullet train...)
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To: factoryrat

Right. They are still incorporated in the US and US taxpayers are still on the hook for them even though they have shifted their allegiance to foreign possibly enemy countries. A great deal, to be sure, but not for the US citizen.


34 posted on 11/26/2008 4:38:06 PM PST by hedgetrimmer
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To: ari-freedom
Let’s give them a loan but only when they cut their dealers (GM has 7000 vs less than 1500 for Toyota) and cut wages and perks so they are in line with what other car companies pay their workers in right to work states.

They can't cancel these contracts until they declare bankruptcy, which is why they should declare bankruptcy.

35 posted on 11/26/2008 4:45:40 PM PST by PapaBear3625 (Question O-thority)
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To: ari-freedom

It seems to me that Everyone says “We can’t let them fail”, I feel that is a bunch of crap! If it’s because of the thousands employed...why is that any different than a smaller company going out of business? Just because of the number of employees? I don’t think so....idk how we allowed the market (if it’s even true) to rely on the stink 3 to prop up this economy.

IMHO let them fail miserably and teach not just them but the UAW a lesson and get them out of the Libs’ pockets!!!


36 posted on 11/26/2008 5:12:38 PM PST by VanillaBlizzard (Welcome to the USSA (United Socialist States of America))
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To: factoryrat

Oh and by the way, why do you hate Americans?


37 posted on 11/26/2008 5:21:13 PM PST by hedgetrimmer
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To: VanillaBlizzard

the reason why the big 3 made so many mistakes is because they probably thought they were so important, the govt would just have to bail them out, no matter what they did.


38 posted on 11/26/2008 5:24:03 PM PST by ari-freedom (Turkeys belong on the Thanksgiving table, not in the White House.)
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To: hedgetrimmer

I don’t, I really don’t. The point I’m trying to drive home is that there is a coordinated effort to run manufacturing out of this country. In the last year, I’ve been seeing companies dropping like flies, not large corporations but smaller companies that employed the vast majority of local residents. These are companies that supply products to the auto industry, and they’re being lumped in with the “lazy UAW workers”, even though they’re not union, or receive anywhere near the same compensation. Then on top of it all, they get laid off because their employer was forced to build a plant in China, because GM or Chrysler want them to have manufacturing capability there. To sum it up for you, I don’t hate Americans, I hate seeing good, honest, hard working Americans being thrown to the wolves because they won’t work as slave labor for sh!t wages. If this is what the big three want, then it might be a good idea for them to pack up and move somewhere else. The transplant automakers have no problem dealing with these small companies, and in the long run it will work out best for them.


39 posted on 11/26/2008 7:18:23 PM PST by factoryrat (Better living through American Industrial Might.)
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To: factoryrat

Slave labor is also my concern. The arbiter of “free trade” the WTO specifically admonishes first world countries against discriminating against a potential ‘trade’ partner due to their political system. In other words, it was laid out long ago, to keep from trading with a communist country was against “free trade”. In 1996 Congress passed a resolution that trading with known slave labor countries, like China, was against American values, but that movement was quickly quashed by the Clintons, Dianne Feinstein et al.


40 posted on 11/26/2008 7:54:07 PM PST by hedgetrimmer
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To: Soliton
You've seen their new warranty scam, right? It's now up to 100,000 miles... but it's still the same 4 year time period. Most people won't drive 100,000 miles in 4 years. So, basically, since GM won't match the Hyundai warranty time period, GM doesn't think that their products will last more than 4 years.


41 posted on 11/26/2008 10:22:02 PM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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