It’s flip-flop week over at Automotive News. While Editor David Sedgwick pulls a Volt-face, publisher Keith Crain is flopping around the bailout issue with the grace of a freshly-landed steelhead. Just a short week ago, Crain took to his keyboard to pen a paean to the Detroit bailout. “Have the auto companies made bad decisions in the past three decades that have led them to this period of peril? Of course they have, and they continue to make bad decisions. But it is in the best interest of the United States to have a strong and viable domestic automobile industry.” This week, the AN strongman has a new take on bailouts, written under the headline “Somebody Should Just Say No.” In fairness, Crain hasn’t properly flip-flopped, he’s just being hypocritical. He may be the biggest backer of Detroit’s federal teat-nuzzling (“hoon”), but when it comes to Wall Street bailouts, the man is all principle. “Those Wall Street companies bought portfolios of bad home loans to make money,” growls Crain. “The companies are at risk because of their bad judgment, and they should take their losses.” In other words, America needs an auto manufacturing industry, but the financial centers that run the world economy we can give or take. “Let’s not jump into decisions that will increase the indebtedness of the American people,” says Crain, arguing that the auto-industry loans will definitely be paid back. And if “the mess on Wall Street is only a distraction from a thorough study of our manufacturing base,” why does Crain think the Wall Street bailout is getting top billing? Because Treasury Secretary Henry Paulson “made millions” on Wall Street and is “compromised.” As opposed to Keith Crain who never made a dime off America’s auto biz, and is as neutral and incorruptible as Solomon himself? Money-grubbing is never fun to watch, but this is just getting ugly.
Find Reviews by Make:
Read all comments
It looks like there is very little appetite for bailouts among taxpayers/voters.
If the automakers need capital they should look for it elsewhere… even if that means asset sales or takeovers.
It is completely consistent to support relatively small, restricted, subsidies to update US factories (no matter who will eventually own them), but to oppose using 28 times as much taxpayer money for a blank check to buy worthless mortgage, auto loan and credit card debt from US and foreign financial institutions.
The Wall Street bailout is important to the Big Three – irresponsible loans from big banks is how the Big Three stay in business, and how their customers buy cars – so Crain’s alleged inconsistency is no evidence of being in the auto industry’s pocket. If he was really in the pocket of the auto industry he would support both bailouts.
I have a lot of disdain for the south, but between the southern House of Representatives Republicans standing up against immigration reform and standing up against the $700 billion bailout I’m starting to become rather fond of them.
Ewww! Worst photo ever!
Soon the government will be broke. Won’t have no money for bailouts. USA Death Watch continues.
no_slushbox : I have a lot of disdain for the south
Okay, I’ll bite. What do you have against the South that isn’t wrong with the rest of the country?
Ryan Knuckles
I should have said southern politics, or more specifically evangelically driven politics. But I’m trying to give credit where it’s due – a small minority of Republicans (primarily in the House and from the south), in defiance of Bush, are trying to adhere to the traditional conservative values of secured borders and small government (even when it’s Wall Street that needs a bailout or business that’s desperate for the cheapest possible labor).
Fiscal conservatives vs. Bush’s “Compassionate Conservatism”.
I hope this is the start of something big.
I think politicians can only be good at what they do if they hate politicians. Hey.. I’m qualified in that regard.
It’s well-nigh impossible to fathom the motivations of politicians. Politics and show business are twins, usually of the siamese type. What does ‘conservative’ mean? Certainly not out Constitution nor our environment. Somehow all this concern on the part of conservatives (Repulicans) seemed to arise coincident with McCain’s falling poll numbers and his need to show his leadership talents.
Hey, take that $700B to the private citizen. Using the gov’t to carefully dole it out to conquer consumer debt first, mortgages second (unless the person is in danger of losing their house) and only for debt that existed as of June 2008 with $25K per household would go a long way.
I mean if we are transferring wealth, why not to the little guy and let that trickle UP to the rich guys instead of the trickle down economics they go on and on about.
@no slushbox: even a broken watch is right twice a day…
So far as I can tell southern politics = pork barrel politics. I’m not surprised southern republicans are opposed to bailouts for MI or NY based industries. When its subsidies for tobacco plants, cotton plants or german car plants it’s a different story.