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marinejcksn
12-12-2008, 11:53 PM
White House Promises to Head Off Carmaker Collapse

With Congress gridlocked and the economy floundering, the Bush administration declared Friday it would step in and prevent the "precipitous collapse" of the U.S. auto industry and the disastrous national economic impact of the hundreds of thousands of job losses sure to follow.

The day after the sudden demise of emergency legislation in Congress, administration officials said no decisions had been made on the size or duration of the new rescue plan, or what type of concessions, if any, would be demanded from the struggling automakers, their workers, stockholders or others.

In a reversal, the most likely option under consideration involved billions of dollars originally ticketed for the bailout of the financial industry. President George W. Bush had long declared that money off-limits to the beleaguered automakers.

General Motors Corp. and Chrysler LLC have warned they are running out of cash and face bankruptcy without some form of assistance. Ford Motor Co., which is in somewhat better shape financially, has been seeking access to a line of credit.

Urgent requests for White House intervention to save the automakers came from President-elect Barack Obama, Republican and Democratic members of Congress and outside groups.

"Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms," White House press secretary Dana Perino said after the failure of a $14 billion bailout bill in Congress. The legislation died when Senate Republicans demanded upfront pay and benefit concessions from the United Auto Workers that union officials rejected.

Perino added, "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."

MORE (http://www.newsmax.com/headlines/bush_auto_rescue/2008/12/12/161218.html)

marinejcksn
12-13-2008, 12:01 AM
Thanks to Newsmax for the story. So apparently, Heir Bush is going to say screw you to Congressional Republicans (and yes, even some Democrats) who helped crush the bailout and just do it anyway. Government of, by and for the People my ass. :rolleyes:

linda22003
12-13-2008, 07:25 AM
I think he did it to give the Republicans "cover" for voting for their interests. Bush has nothing to lose, and this way the Republicans get credit for voting the right way.

Sonnabend
12-13-2008, 07:29 AM
How is he a "King"?

This is within his powers as President, is it not?

marinejcksn
12-13-2008, 08:52 AM
Nothing in the Constitution as I understand it gives him the power to do this. It could be implimented via Executive Order, but as it stands I haven't read where he's got the power under Article Two to just bypass Congress and do whatever the hell he wants.

Whatever kind of legacy he hoped to have for doing several good, Conservative things (along with some flops, nobody's perfect), Bush is flushing it all down the crapper in his final year. :mad:

biccat
12-13-2008, 09:27 AM
Nothing in the Constitution as I understand it gives him the power to do this. It could be implimented via Executive Order, but as it stands I haven't read where he's got the power under Article Two to just bypass Congress and do whatever the hell he wants.
The original 700b was passed, and I'm guessing Congress had some provision in there about "executive discretion" or something similar. The money has been properly authorized by Congress, the President was likely given authority to determine how (at least some of) it is spent.

Lager
12-13-2008, 11:26 AM
Bush, the lame duck is leaving soon. Not just republicans, but democrats in congress also get to keep their hands clean of this by dropping the decision in his lap. Those who might be sticking around in government through next year really don't want to have anything to do with either a yea or nay vote on this. It's self interest over the interests of the country.... once again.

lacarnut
12-13-2008, 12:19 PM
These few billions to keep the automakers afloat for a few months is like flushing money down a rat hole. They will come back for 2, 3 and 4 times the amount that they are seeking now. GM has 50 billion dollars worth of bonds that they have to pay back. In other words, these companies have been borrowing money for years; their finances are in a mess. If that is not a Ponzi scheme, I don't know what is.

Even if the the unions accept new work rules, pay cuts, retirement cuts, hospitalization cuts, the American automakers will not be able to be as profitable as the Jap automakers here because of the burdensome retiree benefits. The only solution is bankruptcy.

Airlines that went into bankruptcy did not go out of business and neither will GM. They unloaded their debt and cut expenses by doing so to make themselves solvent. I think the media and the automakers are playing this fear mongering game.

Bush should keep his RINO ass out of this and let the free market work. Pretty soon the government will nationalize every major industry if these bailouts continue. States like CA and NY will be coming to DC to tap into the money tree also.

marinejcksn
12-14-2008, 12:57 AM
They will come back for 2, 3 and 4 times the amount that they are seeking now.

This is an important part of the issue Lacar & I'm glad you mentioned it. Even Barneys Frank let it slip that the 34 Billion they're seeking is just the tip of the iceberg, he said in an interview it could be 50, 75 billion, that he "didn't know". GM says they're pissing away cash at a rate of 5 Billion A MONTH, so this 34 billion (actually 25 billion, split between them & Chrystler since Ford wants a 9 Billion LOC in case the other 2 go down) would keep them afloat for what, a little over 3 months? Then what? They'll be right back at the trough asking for more cash.

The Governor of Michigan Jennifer Granholm (who's destroyed the state, by the way) called the Conservative Republican senators who shot down this welfare bill "Un-American". Now, correct me if I'm wrong, but wasn't there a HUGE stir when MSLSD and the liar Chris Mathews (screwball on Screwball) tried to make it seem like Michelle Baughman called Obummer's policies un-American? Anyone else remember how they tried to railroad her out of office? Pelousy denounced her in public, the democrat hit machine launched millions of dollars into the election coffers of her opponent....anyone else remember that rotten garbage?

But Jen Granholm....no....she's allowed to say Conservatives are "Un-American" and the media doesn't blink. Why? Because she's a liberal moonbat, that's why. :rolleyes:

Troll
12-14-2008, 01:47 PM
Boy, I can't wait until 2012 to vote a Republican back in the White House. What a disaster.