Posted on 12/12/2008 7:04:08 AM PST by meandog
Bush changes mind, may save auto giants
Facing the potential bankruptcy of iconic American firms, President Bush on Friday abandoned his longstanding objection to using using the Wall Street bailout fund to help save G.M., Ford and Chrysler.
A frustrated Republican congressional official said: "If only they had said this last week, we could have saved ourselves a full week."
Ten hours after the Senate rejected a separate lifeline for the automakers, White House Press Secretary Dana Perino said in a statement it would be "irresponsible" to let the companies crash. So she said Bush will "consider other options," including the $700 billion Troubled Assets Relief Program that Congress created for the Treasury Department in October.
"Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms," Perino said in a statement. "However, given the current weakened state of the U.S. economy, we will consider other options if necessary – including use of the TARP program — to prevent a collapse of troubled automakers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."
(Excerpt) Read more at politico.com ...
Once you lose your auto industry you will not easily get it back. That’s a significant chunk of America’s manufacturing sector at risk: leaving that to crash and burn has got to have a long-term effect on America’s industrial capabilities. I would have thought that effect to be a bad one.
What alternatives does Bush realistically have to doing some sort of bail-out?
I was just listening to the UAW President, Ron Gettlefinger, whining about the fact that there where Senators that wanted the unions to give up some things. The fact that they where unprepared to give up anything.
Quite honestly, the fellow p**sed me off. My thought’s are that if this guy would be willing to personally take a pay cut - and all other union lard-a**es along with him - I might think about listening to their proposals.
Bush - what a disappointment this fellow has been. He never seems to have missed an opportunity to stick his hand into the American public’s pocket. It makes one wonder if zero is going to be much worse?
They will still hate and mock him.
As I posted elsewhere :
“I can deal with a depression..
I can’t deal with a Socialist Government..
To me that would be the last straw..
I would have to look to Thomas Jefferson for advice
on handling a non responsive and possibly illegal government “
Don’t you mean Jorge W. Arbolito?
Reagan would’ve fired them.
Seems there was a movie about some college kids trying to convince folks that “Bernie”, was still alive.
Think of Bernie as the big 3, and Congress and the White House as the college kids.
You can’t “SAVE” someone who’s already DEAD!!!
Yes...I know I’m screaming!
Idiot.
You ain't seen nothing yet!
Why?
And, parenthetically, why are politics and mainstream news the only two industries where it's acceptable to beg the question as a matter of course?
HF
I think the auto executives are smart. They saw a source of revenue that's going to have practically zero accountability and they're trying to get a piece of the pie. Smart, but not ethical.
I think this guy is starting a war;/
Amen. It’s about time to water the tree.
Mr. Bush hasn't changed his MIND, at all - only his tactics. He has been single-mindedly determined to bail-out the U.S. auto industry since their recent "troubles" were made public (and probably before).
Being forced to use funds from the previous " bankers' and billionaires' " bail-out to achieve this IS a bit of a set-back; but the bankers and billionaires can always come back LATER to further engorge themselves at the public trough.
NO BAILOUT!!!!!!!!!! If they can’t survive on their own, let them go into Chapter 11 and reorganize, or go out of business!
Out of the Big Three, I think Ford is the one who will survive. They’ve got a good CEO, some amazing products coming (most notably, the Ford Fusion Hybrid), and have already been moving towards efficiency.
If they can’t settle it out of bankruptcy, then they need to:
-Declare Chapter 11
-Eliminate their debt
-Wipe out the pension/healthcare obligations
-Eliminate the union contracts and impose new ones, with much lower (but sustainable) pay rates
-Bring Ford’s Camaçari-style manufacturing to the USA, no matter how much the UAW whines, cries and screams
-Find a way to break up the UAW, once and for all!
It’s like people think “bankruptcy” equals “vanished into thin air”. Just like people, if corporations go bankrupt, they don’t cease to exist.
Let ‘em go bankrupt - the sun will still be shining the next day.
Earth to Gettlefinger...UAW will lose all the jobs. Nobody can buy cars cause they are broke you dope. They better wise up or they will all be unemployed soon.
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