White House breathes new life into auto bailout

Marketwatch ^ | Dec. 12, 2008 10:28 a.m. EST | y Rex Nutting & Greg Robb, MarketWatch

[Ernest_at_the_Beach]

WASHINGTON (MarketWatch) -- The Treasury Department said Friday that it would step in and lend funds to the Big Three auto makers until Congress has time to consider a long-term rescue package next year.

Talks on a rescue package broke down in the Senate late Thursday night, making action on a bailout impossible until 2009.

"Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," Treasury spokeswoman Brooklyn McLaughlin said in a statement.

White House spokeswoman Dana Perino said the funds to aid the sector would come from the Troubled Asset Relief Program.

The decision to use TARP funds is a shift in the White House's previous position that the $700 billion should be used only to stabilize the financial sector. However, the head of the Government Accountability Office testified last week that the wording of the legislation was flexible enough to authorize loans to the auto industry.

"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," Perino said. "Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms."

Perino also said the government wouldn't offer a blank check.

[Ernest_at_the_Beach]

pingaroo

[Ron H.]

Bush is bound to screw things up even more before gets out of Washington.

[Nonstatist]

Impeach Bush.

[screaminsunshine]

Gee I thought Bush was a Republican all these years and he was really a Democrat.

[philsfan24]

bush should be thrown out of the party for this. this is the final straw. he is no conservative and no republican.

[peyton randolph]

More compassionate conservatism (big government liberalism with a Texas twang). He’s pretty generous with our money. Trying to play Hoover to Obama’s FDR.

[mnehring]

I noticed that the moves on the stocks have leveled out (Ford even moved into positive territory, up almost 3% the last time I checked), GM is now down only about 1% so someone is expecting a move. GM was down as much as 30% this morning.

[rabscuttle385]

[Deo volente]

Perino also said the government wouldn't offer a blank check.

Tell us another whopper, Ms. Perino.

[sickoflibs]

You see that republicans were setup in September voting for this.

[BGHater]

Over a month left.

Still time for the WH to give TARP money to:

-Credit Card companies
-Homeowners
-Las Vegas Casinos
-Speculative Real Estate
-Florida Condos
-Student Loans
-Illegal Aliens

[P8riot]

NO means NO! Call the whitehouse switchboard 202.456.1414.

[Ernest_at_the_Beach]

Interesting little banner just above the article at Marketwatch...everyone should watch it for a bit as it flashes various statements from the different parties.

[Rum Tum Tugger]

I think that’s it’s pretty clear that if Dubya hasn’t become the worst president in history, he’s certainly one hell of a competitor.

[olrtex]

It is hard to see why we should support the Republican Party.

[Slapshot68]

I hate the UAW. Apparently, they’d rather lose their jobs than accept a decrease in pay that would put them on par with foreign competitors.

[Puppage]

Because Congress failed to act...

They acted. Just not the way these ass clowns wanted.

[TSgt]

Bush is either the most arrogant man in the world or the dumbest. And to think that I voted for him twice and donated to his campaign. I’m going to go vomit now.

[PEACE ENFORCER]

.....Did anyone notice there was a pay increase for Judges slipped into this sham of a bill???