Republicans Let Down America On Automaker Bailout

Discussion in 'Economy' started by JimofPennsylvan, Dec 12, 2008.

  1. JimofPennsylvan
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    JimofPennsylvan VIP Member

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    The Senate Republicans failed America again in their obstruction on the U.S. automaker
    bridge loan legislation, they again twisted their conservative ideals to seek political advantage on a matter of vital importance to America. The Democrat’s and the White House’s plan was a great plan which would have created enormous and almost certainly compelling pressure on the U.S. automakers to restructure and become long-term viable. The Republican senators’ insistence that the UAW “immediately” accept the same compensation terms as foreign automakers workers was unreasonable, unwarranted and arbitrary and so was the Republican senators’ insistence that U.S. automakers “immediately” reduce their debt by two-thirds. The Republican senators turned this whole matter into a competition and not a matter where the American people’s interest were being best served. The three to four dollar difference in U.S. automaker workers wages over foreign automakers wages was not sufficient enough to justify blocking this rescue plan for the U.S. automakers, with respect to health insurance the UAW absolutely needed to dramatically improve the co-pay terms of the plan and dramatically improve the percentage of the premiums they pay to make their insurance plan a mainstream type but a requirement to convert to foreign automaker workers high deductable insurance plan was totally uncalled for; these high deductable insurance plans are better than nothing for workers faced with the option of having no health insurance but these high deductable plans from a practicable standpoint result in people not seeing doctors when they should where serious health problems can be picked up - a plan to put the American people into high deductable health insurance coverage is a plan which fails the American people. A requirement the U.S. automakers “immediately” reduce their debt by two-thirds was wrong because it was unrealistic for the debt amounts at issue here are tens of billions of dollars the respective parties need to be given some months to work out a cut in the debt load in that general amount. The republican senators should have agreed to kick all these issues to the U.S. automaker czar, the legislation would have created, who could have handled all these matters in a reasonable and professional matter and satisfactorily protected the American people’s interests.

    This whole matter involving Republican grand standing here smells. It sure seems that Republican senators have two standards one for their allies in the financial industries and another for ordinary working people where initiatives helping ordinary working people are held to a higher conservative principles standard. I haven’t seen Republican senators grand standing over the stupid costly course taken by the U.S. government to retire AIG’s swaps where the U.S. government allowed the swap counterparties to retain the $15 billion dollars of collateral on the swaps if they agreed to cancel the swaps even though the U.S. government bought the underlying securities for the swaps at face value (the government should have just traded equivalent Treasury bonds for the underlying securities and had a law passed just voiding the swaps as unnecessary). The U.S. government has engaged in a cluster foul-up with the Freddie and Fannie bail out, instead of just backing the Fannie and Freddie debt for a time like an abundance of experts called for which would have dramatically increased Fannie and Freddie profit margins, the government has gone on this buying spree of hundreds of billions of dollar of Fannie and Freddie debt which more likely than not will “not” save the U.S. government from having to come in and loan these GSEs’ tens of billions of dollars to remain solvent. Furthermore, the Senate Republicans have obviously with their behavior on this issue forgot to remember how terrible stewards they were with U.S. taxpayers money when they were in power in Congress during the first six years of the Bush Administration, they have no business making their pompous, arrogant and irresponsible grandstanding.


    The Republican senators say the answer to the auto industry dilemma is to have a prepackaged bankruptcy, in and out of bankruptcy fast. Common sense would indicate unless they can get in and out of bankruptcy in a week, their reputation with consumers is going to be severely hurt. Moreover, and this is a galactically size moreover, there is no time to negotiate a prepackaged bankruptcy. GM is burning through cash they will run out by the end of this month and have to enter bankruptcy, by the end of this month one couldn’t even acquire a list of all the requirements of all GM’s creditors for them to agree to sacrifice their interests so GM could exit bankruptcy. This pre-packaged bankruptcy idea is a wolf in sheep’s clothing idea it’s a plan to at best imprudently down size the U.S auto industry.

    The U.S. automaker bailout has always been about jobs and saving an important manufacturing segment of the U.S. economy. If the U.S. automakers go into bankruptcy and if one U.S automaker goes into bankruptcy they all will, at best it will result in the downsizing of the industry where the US auto industry will long-term look like an industry that directly employs 150,000 people instead of the 300,000 plus people which is readily achievable if the U.S. government comes through with the $35 to 40 billion the industry is asking for as bridge loans. The Republican members of the U.S. Senate have failed to learn their lesson they have to start caring about the middle class and working people, it is not acceptable that they not learn this lesson. The American people will not forget the Republican senators’ crucial failure here.
     
  2. SwingVoter
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    SwingVoter VIP Member

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    I voted for Obama, and cannot believe his idiocy got re-elected in 2004, but I will not forget the GOP Senators standing up the Socialists yesterday, very impressed.

    Country was built on self-reliance, not crying with the UAW when you don't get your way.
     
  3. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    No, this bailout was stealing from the American taxpayer to prop up more failed businesses. Any Senator or Congressman that opposed it did their duty to their constituents.
     
  4. catzmeow
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    catzmeow BANNED

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    This was a bad plan. If anything, these need to be structured like a bankruptcy, with broad oversight given to a judge to completely change these companies from top to bottom, and rewrite labor agreements.

    I'm GLAD that my DEMOCRATIC congresscritter voted against it. :clap2:
     
  5. WillowTree
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    WillowTree Diamond Member

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    Dayyuuummm,, all the Democrats have wanted for the last eight years was to bring down Bush, this country and the Republicans,, now they are a bitching cause the Republicans are trying to bring down the Unions.. I'm laughing soo hard..





    :clap2:


    nasty bunch of people,, now they want what's good for America
     
  6. editec
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    editec Mr. Forgot-it-All

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    We had 750 billion to give to the banking class, with no string attached.

    but we don't have any money to keep the auto industry going?

    Yeah, right.

    No class war in America, huh?
     
  7. Ravi
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    Ravi Diamond Member

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    I think it is pretty funny that any of the few regulations on industries that the Republicans manage to enact...like pollution control, energy efficient cars, etc...get at least a decade to be phased in. Here they seem to want autoworkers to all commit suicide tomorrow.
     
  8. GHook93
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    GHook93 Aristotle

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    I am hoping you are correct and they are correct, but I'm wary on it! It scares me to think of the economy getting any worse, since its in pretty bad shape as-is! The big 3 going down will take many with it. Sometimes people have to really sit back and say, be careful what you wish for.
     
  9. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    It's certainly not going to be a good time for many people. But bailing out failed businesses will simply make the recession worse and longer. But there's a reason a recession is also called a "correction." It has to happen so that the market can re-allocate resources. It's like a doctor prescribing an unpleasant treatment, you don't like it, but you have to do it to get better.
     
  10. WillowTree
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    WillowTree Diamond Member

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    oh, and btw the Republican Senators in the South have every right and every obligation to represent and protect their constituents interests... That right dosen't belong to fucked up Michigan.. bobo
     

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