White House, Dems Finalize Deal for Automaker Bailout

[WillowTree]

WASHINGTON -- Majority Democrats and the Bush White House finalized a deal to spend $14 billion on emergency loans for struggling U.S. automakers, congressional officials said -- despite fierce opposition from some Republicans.

On Wednesday, the White House revealed elements of the $14 billion "bridge financing," which would give until March 31 for the Big Three automakers to have a plan to make the firms "viable" or "the government gets its money back."



GOP Senators Jeopardize Auto Rescue Bill - FOXNews.com Transition Tracker


Congressional Republicans, left out of negotiations on the package, are expressing grave reservations and may seek to block it. Sen. David Vitter, R-La., promised to filibuster the measure, which could delay a final vote for days.

He said the package has an "ass-backwards" approach to curing what ails the U.S. auto industry.

 

[Southpaw]

To me, the auto bailout is a bit like a high school track team competing for state finals.

The seniors on the team were great last year but they partied all off-season and showed up fat and slow. The juniors and on down were slow last year but trained hard and are now the fastest on the team. The coach decides to focus all his time and attention on the seniors and forget about the rest, even though it is highly unlikely the seniors can get in shape in time for the race.

Basically, there is no reason to prop up the losers and make sure they finish. In the long run, it just encourages them to be lazy.

 

[Xenophon]

Do something right for a change mitch, lead the fillibuster on this crap.

 

[dilloduck]

Do something right for a change mitch, lead the fillibuster on this crap.

Dole it out to them a dollar at a time and the very second they stray from the narrow path that should be set for them, tell em no more.

 

[Caligirl]

Why are we giving more to GM than the company is worth?

 

[BlackAsCoal]

If the American auto companies fail .. depression starts almost immediately.

I hear more whining about LOANING .. WITH PRECEDENT .. a few billion they'll nedd to restructure, than I've heard about the TRILLIONS they gave away to the banking industry.

The automakers can't go to the banks for the loans they need because that industry is still in shambles hundreds of billions of dollars later .. and the government doesn't even know what happened to the money.

Republicans should stand in the way of loans to the automakers and allow the last manufacturing jobs in America to go away and allow millions of Americans to lose their jobs. It will prove to be the final nail in their coffins.

It will be interesting to listen to the whining of those who now say let them die.

 

[Caligirl]

Republicans should <snip> allow the last manufacturing jobs in America to go away and allow millions of Americans to lose their jobs.

I have heard that national intelligence estimates are that by 2025 the only important role of the US in the world is production of arms and protection of select countries.


Depressing.

Sorry, no link.

 

[WillowTree]

It dosen't matter how much money you shove at them, it only prolongs the agony.. it's not the taxpayers problem that Detroit screwed up a whole industry!

 

[BlackAsCoal]

I have heard that national intelligence estimates are that by 2025 the only important role of the US in the world is production of arms and protection of select countries.


Depressing.

Sorry, no link.

Unfortunately we've been on that course for a long time.

 

[Caligirl]

What do people suggest?

If we have to give money, I would like to see money given to start ups like the places in Silicon valley that are making electric cars like this:

http://www.teslamotors.com/

Build up a manufacturing base for the electric car industry, and help California's economy at the same time .

Another good idea is to have the oil companies, who profited from the low mileage of recent cars, put up the 14-35 billion. For them it is pocket change.

 

[BlackAsCoal]

It dosen't matter how much money you shove at them, it only prolongs the agony.. it's not the taxpayers problem that Detroit screwed up a whole industry!

Irrespective of your flawed comment .. a depression WILL be the taxpayers problem.

 

[WillowTree]

Irrespective of your flawed comment .. a depression WILL be the taxpayers problem.

we are having a depression with or without the auto companies,, stop using fear tactics..

 

[WillowTree]

What do people suggest?

If we have to give money, I would like to see money given to start ups like the places in Silicon valley that are making electric cars like this:

Tesla Motors

Build up a manufacturing base for the electric car industry, and help California's economy at the same time .

Another good idea is to have the oil companies, who profited from the low mileage of recent cars, put up the 14-35 billion. For them it is pocket change.

what I would suggest is letting all three of the auto companies and giving them a choice, either file bankruptcy and restructure or we will use our limited resources and buy you out and then we will restructure. If the American taxpayer has to pony up this much money then we should own the fricking industry. Then we can merge all three operations into one functioning automaker,, and maybe just maybe produce a fuel efficient, affordable automobile that isn't a piece of shit.. Remember the VW bug? that was Germany's shinning glory..

 

[irie]

Irrespective of your flawed comment .. a depression WILL be the taxpayers problem.

How is a comment flawed??? Logic perhaps, but a flawed comment?

 

[irie]

The biggest joke of the whole thing is the feds want to appoint a car czar who has final say on any decisions the big 3 may make. Now thats scary!

 

[sealybobo]

Irrespective of your flawed comment .. a depression WILL be the taxpayers problem.

Sharing this with Willow is a waste of time so I thought I'd share it with you. See, GOP is evil!!!!

Congress Bails Out Those Who Shower before Work, but Not Those Who Shower after Work
Right-wing Republicans and conservative pundits have made it clear they want Federal aid denied to the Big Three so that the firms go bankrupt. Then the companies can renege on pensions they guaranteed to retirees and can break salary and benefit promises to workers in current contracts.
They want the unions broken. They want retirees’ benefits slashed and union workers’ wages and benefits cut, which, of course, will enable the foreign auto makers — whose U.S. plants are non-union — to reduce their wages. It’ll be an all-American race to the bottom, rather than the preferable opposite, where workers and retirees are treated with dignity and respect for their hard labor.
None of those conservatives, however, is calling for Citigroup’s Charles O. Prince III, who took down Citigroup at a cost of untold billions to taxpayers, to return his $1.7 million pension, office and car and driver.
Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee, said, for example, “I do not support the use of U.S. taxpayer dollars to reward the mismanagement of Detroit-based auto manufacturers.”
Shelby, of course, has a lot to lose if Michigan does well. His home state of Alabama gave HUGE tax breaks to foreign car companies Mercedes-Benz, Honda and Hyundai to locate factories there — hardly a free market approach.
When the representatives of blue collars went to Congress hat in hand, lawmakers insisted that to get loans automakers would have to present viable business plans. Congress didn’t impose similar conditions, however, when Bernanke and Paulson went to Congress seeking grants for reckless white collar firms.

For the whole thing go to:
The Hill Blog» Blog Archive » Congress Bails Out Those Who Shower before Work, but Not Those Who Shower after Work

 

[BlackAsCoal]

Sharing this with Willow is a waste of time so I thought I'd share it with you. See, GOP is evil!!!!

Congress Bails Out Those Who Shower before Work, but Not Those Who Shower after Work
Right-wing Republicans and conservative pundits have made it clear they want Federal aid denied to the Big Three so that the firms go bankrupt. Then the companies can renege on pensions they guaranteed to retirees and can break salary and benefit promises to workers in current contracts.
They want the unions broken. They want retirees’ benefits slashed and union workers’ wages and benefits cut, which, of course, will enable the foreign auto makers — whose U.S. plants are non-union — to reduce their wages. It’ll be an all-American race to the bottom, rather than the preferable opposite, where workers and retirees are treated with dignity and respect for their hard labor.
None of those conservatives, however, is calling for Citigroup’s Charles O. Prince III, who took down Citigroup at a cost of untold billions to taxpayers, to return his $1.7 million pension, office and car and driver.
Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee, said, for example, “I do not support the use of U.S. taxpayer dollars to reward the mismanagement of Detroit-based auto manufacturers.”
Shelby, of course, has a lot to lose if Michigan does well. His home state of Alabama gave HUGE tax breaks to foreign car companies Mercedes-Benz, Honda and Hyundai to locate factories there — hardly a free market approach.
When the representatives of blue collars went to Congress hat in hand, lawmakers insisted that to get loans automakers would have to present viable business plans. Congress didn’t impose similar conditions, however, when Bernanke and Paulson went to Congress seeking grants for reckless white collar firms.

For the whole thing go to:
The Hill Blog» Blog Archive » Congress Bails Out Those Who Shower before Work, but Not Those Who Shower after Work

That was perfect .. and if the automakers are allowed to fail, those words will become a mantra throughout this country.

thanks

 

[NOBama]

IMO, the country isn’t going to go into a depression if GM goes into chapter 11, although that’s what many a DC insider would like us to believe. The fact of the matter is, chapter 11 was designed specifically for the purpose of corporate reorganization.

I’ve not heard one valid argument as to why DC wants to abandon current laws and procedures. Could it be that a lot of politicians are indebted to the company or even the UAW? Ya think?

“Loaning” money to save jobs is the most ridiculous thing I’ve even heard of and to date, I’ve not heard one valid argument as to why GM can’t take the Chapter 11 route, which was designed for this purpose. I heard a good one on the news yesterday; some senator (don’t recall who) reasoned that “other countries are doing it”. Simply outrageous.

Loaning money to GM in order for them to become solvent any time soon is akin to believing in clean coal technology, IMO.

This whole depression scenario is nothing more that a scare tactic. What happens if GM don’t survive AFTER we loan them this money and they can’t pay it back? The way I see it, he risk of lending it to them by far exceeds the risk of NOT lending it to them.

 

[BlackAsCoal]

we are having a depression with or without the auto companies,, stop using fear tactics..

A right-winger .. "stop using fear tactics"



Damn this board is funny.

You mean millions of American workers suddenly out of work facing an environment where there is little work to be had .. that's "fear tactics?"

OK

 

[BlackAsCoal]

IMO, the country isn’t going to go into a depression if GM goes into chapter 11, although that’s what many a DC insider would like us to believe. The fact of the matter is, chapter 11 was designed specifically for the purpose of corporate reorganization.

I’ve not heard one valid argument as to why DC wants to abandon current laws and procedures. Could it be that a lot of politicians are indebted to the company or even the UAW? Ya think?

“Loaning” money to save jobs is the most ridiculous thing I’ve even heard of and to date, I’ve not heard one valid argument as to why GM can’t take the Chapter 11 route, which was designed for this purpose. I heard a good one on the news yesterday; some senator (don’t recall who) reasoned that “other countries are doing it”. Simply outrageous.

Loaning money to GM in order for them to become solvent any time soon is akin to believing in clean coal technology, IMO.

This whole depression scenario is nothing more that a scare tactic. What happens if GM don’t survive AFTER we loan them this money and they can’t pay it back? The way I see it, he risk of lending it to them by far exceeds the risk of NOT lending it to them.

I'm betting you haven't heard one valid argument because they don't make valid arguments on FAUX News.

How's this .. who is going to buy a car from a company in bankruptcy?

That valid argument has been stated many many times .. in fact, it is the very argument of why they structured the loans they way they have.

Turn off Faux, get valid arguments.

Additionally, I put the words "with precedent" in caps for the impaired .. and the evidence of that can be found in the 1979 LOAN GUARANTEES to Chrylser .. which repaid the 1.5 billion dollars loans off by 1983, along with the $350,000 in interests. Chrylser recovered and now makes great cars. They are victim to a faltering economy, just like EVERYBODY else .. including foreign automakers who know that if the Big 3 are allowed to fail, they're in serious trouble themselves.