Obama Pushes for $50 Billion for Automakers, Oversight Czar

[NOBama]

Nov. 13 (Bloomberg) -- President-elect Barack Obama is pushing Congress this year to approve as much as $50 billion to save cash-starved U.S. automakers and appoint a czar or board to oversee the companies, a move that would require President George W. Bush's support, people familiar with the matter said.

Obama's economic advisers are now convinced that if General Motors Corp. doesn't get a financial lifeline soon, it will have to file for bankruptcy by the end of January. And if the companies don't get almost $50 billion, Obama will be dealing with the issue again by next summer.

Any czar or board would be patterned after the bailout of Chrysler in 1979 and New York City in 1975. Advisers such as former Federal Reserve Chairman Paul Volcker and former Treasury Secretary Lawrence Summers are said to be telling Obama that the cash is urgently needed now.

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This is bad. This yoyo wants to give the auto makers 50B. WHY? What can they do to change anything with that money? What will they have to show for the 50B when it's gone? Will we have new production lines pumping out 60mpg, CNG vehicles, at a price people can afford? I don't think so, in fact, I don't think they think so.

It seems as though we're going to sponsor these companies only to keep the people working for them employed. How can this help the economy other than to defer the inevitable? Granting the auto companies 50B can only ensure that we'll grant them another X amount of money in the future - the near future.

Unless the auto makers can outline a reasonable and acceptable plan that gets them back into the business of selling cars, this will be like flushing money down a huge toilet.

We need to intervene, to let our representatives know that this is a terrible plan. We cannot continue to save jobs by printing money and it giving it to the companies they work for. We might as well just give the money directly to the people, let these companies fail, and watch new companies arise out of the ashes.

 

[editec]

Good for him.

Better than giving it bankers.

At least the Auto industrialists will do something productive with it.

You people talk about investing in a green technology, and then you bitch when we actually do something about making that happen.

I'm hoping that the American Auto industry is funded well enough, and encentivized intelligently enough to actually CHANGE our world.

 

[sealybobo]

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This is bad. This yoyo wants to give the auto makers 50B. WHY? What can they do to change anything with that money? What will they have to show for the 50B when it's gone? Will we have new production lines pumping out 60mpg, CNG vehicles, at a price people can afford? I don't think so, in fact, I don't think they think so.

It seems as though we're going to sponsor these companies only to keep the people working for them employed. How can this help the economy other than to defer the inevitable? Granting the auto companies 50B can only ensure that we'll grant them another X amount of money in the future - the near future.

Unless the auto makers can outline a reasonable and acceptable plan that gets them back into the business of selling cars, this will be like flushing money down a huge toilet.

We need to intervene, to let our representatives know that this is a terrible plan. We cannot continue to save jobs by printing money and it giving it to the companies they work for. We might as well just give the money directly to the people, let these companies fail, and watch new companies arise out of the ashes.

You'll tell us why we can't and we'll show you that YES WE CAN. Watch and learn.

 

[bigdaddygtr]

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This is bad. This yoyo wants to give the auto makers 50B. WHY? What can they do to change anything with that money? What will they have to show for the 50B when it's gone? Will we have new production lines pumping out 60mpg, CNG vehicles, at a price people can afford? I don't think so, in fact, I don't think they think so.

It seems as though we're going to sponsor these companies only to keep the people working for them employed. How can this help the economy other than to defer the inevitable? Granting the auto companies 50B can only ensure that we'll grant them another X amount of money in the future - the near future.

Unless the auto makers can outline a reasonable and acceptable plan that gets them back into the business of selling cars, this will be like flushing money down a huge toilet.

We need to intervene, to let our representatives know that this is a terrible plan. We cannot continue to save jobs by printing money and it giving it to the companies they work for. We might as well just give the money directly to the people, let these companies fail, and watch new companies arise out of the ashes.

I bet you had no problem with the bailout of the Airlines after 9/11 did you?

 

[NOBama]

Good for him.

Better than giving it bankers.

At least the Auto industrialists will do something productive with it.

You people talk about investing in a green technology, and then you bitch when we actually do something about making that happen.

I'm hoping that the American Auto industry is funded well enough, and encentivized intelligently enough to actually CHANGE our world.

You need to get out of the woods, man. Posting useless dribble that doesn't even address the issue is evidence of it too.

Giving the auto industry 50B is going to do NOTHING but keep people working until the 50B runs out. Are you planning to run out and buy a new Chevy, Ford, or Chrysler becuse we're giving the companies money? Well, you might, I but I sure as hell won't.

We need to let these companies fail in order that new companies can arise that actually have the technology to address our problems. The real kick in the pants is, there are companies out there that can address this problem and we're collectively ignoring them.

Ed, a good definition of insanity is to: Keep doing the same thing while expecting different results.

 

[BaronVonBigmeat]

Good for him.

Better than giving it bankers.

At least the Auto industrialists will do something productive with it.

There is no evidence of this. Chrysler has already been bailed out twice, and they have not changed their ways. In fact, bailing them out will only reinforce their bad habits. It's called "moral hazard".

Detroit's fundamental problem is, they cannot make money on small cars. This is mainly due to labor costs. The other huge problem is their health care costs from pensions. They need to declare bankruptcy simply so that they can break their union and pension contracts. Until that's done, no one is going to buy them out because it's a hopeless obstacle to their recovery.

But union members and pensioners vote, so there will probably be an endless river of cash coming from washington.

You'll tell us why we can't and we'll show you that YES WE CAN. Watch and learn.

Hope you know something that the French and the Russians didn't know about owning and running car companies.

BTW, this whole corporate/government "partnership" thing--you guys do realize that this is, by definition, economic fascism, don't you? Like, real Mussolini type stuff? Fascism isn't just goosestepping and jew killing. I thought the left was supposed to oppose fascism.

 

[driveby]

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This is bad. This yoyo wants to give the auto makers 50B. WHY? What can they do to change anything with that money? What will they have to show for the 50B when it's gone? Will we have new production lines pumping out 60mpg, CNG vehicles, at a price people can afford? I don't think so, in fact, I don't think they think so.

It seems as though we're going to sponsor these companies only to keep the people working for them employed. How can this help the economy other than to defer the inevitable? Granting the auto companies 50B can only ensure that we'll grant them another X amount of money in the future - the near future.

Unless the auto makers can outline a reasonable and acceptable plan that gets them back into the business of selling cars, this will be like flushing money down a huge toilet.

We need to intervene, to let our representatives know that this is a terrible plan. We cannot continue to save jobs by printing money and it giving it to the companies they work for. We might as well just give the money directly to the people, let these companies fail, and watch new companies arise out of the ashes.

I'm with ya, this is a terrible idea. Maybe we can have one of the messiah's cronies run this idea by him. Any American that buys an AMERICAN MADE car will receive a $1500.00 rebate check from the messiah himself. Maybe it won't be a long term solution for the US auto industry, but i think it could stimulate the industry right away.

 

[Paulie]

We need to let these companies fail in order that new companies can arise that actually have the technology to address our problems. The real kick in the pants is, there are companies out there that can address this problem and we're collectively ignoring them.

Ed, a good definition of insanity is to: Keep doing the same thing while expecting different results.

This is good stuff right here. People think that these big corporations are somehow necessary to the country's survival, simply because they are the ones who have always been at the top throughout the past 70 years. That's ridiculous. When a business fails, there will always be another one to replace it. I say let the Big 3 eat shit, and watch as new companies take their place.

Liberals want to see a free market in action, THAT would be the quintessential free market right there.

 

[Zoomie1980]

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This is bad. This yoyo wants to give the auto makers 50B. WHY? What can they do to change anything with that money? What will they have to show for the 50B when it's gone? Will we have new production lines pumping out 60mpg, CNG vehicles, at a price people can afford? I don't think so, in fact, I don't think they think so.

It seems as though we're going to sponsor these companies only to keep the people working for them employed. How can this help the economy other than to defer the inevitable? Granting the auto companies 50B can only ensure that we'll grant them another X amount of money in the future - the near future.

Unless the auto makers can outline a reasonable and acceptable plan that gets them back into the business of selling cars, this will be like flushing money down a huge toilet.

We need to intervene, to let our representatives know that this is a terrible plan. We cannot continue to save jobs by printing money and it giving it to the companies they work for. We might as well just give the money directly to the people, let these companies fail, and watch new companies arise out of the ashes.

Don't mind giving them some help, but by God that money would come with massive STRINGS attached, mainly, gut your Unions, send the UAW packing and pay the GOING RATE with NO PENSIONS like the rest of working class America!!! We let the airlines cave, for the most part, why not the Auto companies.

Afterall, all they make is CRAP anyway.....