Political analysts are having a field day with this bailout business. Do Democrats want the multi-billion dollar automakers’ rescue pack to fail along partisan lines, so they can blame the fall-out on Diego the Republicans– before there are no Republicans left to blame? Are the Republicans stonewalling the bailout because they’re against the bailout on principle, or because they don’t think it will work, or so they can blame the Democratically-controlled Congress? Or even, God forbid, the lame duck President? (Praise be to GM for dropping Washington into the legislative soup between regimes.) I don’t pretend to know what’s in the hearts of our elected representatives, assuming that this vital organ even exists within their cash-padded chest cavities. Anyway, the AP reports that White House “Spokeswoman Dana Perino says the Democratic proposal [to tap into the existing Wall Street bailout fund] would lead to partisan gridlock because the $700 billion rescue package was never intended to help automakers and shouldn’t be now. For that reason, she told The Associated Press that the White House is now actively asking Congress to accelerate loans it first approved in September.” WTF?
So it’s not OK to change the Wall Street bailout bill for Detroit because it would it violates the intent of the law but it is OK to change THE OTHER ONE because…? You know, the bill that was passed by Congress specifically to fund fuel-efficient vehicles, and nothing BUT fuel-efficient vehicles? “Removing those limits from the $25 billion loan package approved in September ‘would be a huge bait and switch,’ said Ann Mesnikoff, director of the clean cars campaign at the Sierra Club.” Yeah, no shit. So… fuhgeddaboutit. Besides, the Congress has already moved on.
“The bill Democrats are writing [to be revealed Monday] would insert the government squarely into the car companies’ operations,” the AP reports. “It would require that the companies submit a plan for long-term viability in exchange for the loans, share a portion of future profits with the government and reimburse taxpayers before any other shareholder, according to aides familiar with it.
‘We certainly want to make sure that there’s a plan how are you going to get out of this mess,’ said Sen. Charles E. Schumer, D-N.Y.”
Note the use of the word “you.”
The Dem’s have control of the house and the Senate. Let us see what happens when they put the legistlation forward.
Bush will veto it. This is just the Dem payoff to the UAW. Many more to come to the enviros and others. This is guaranteeing an economic crash.
“It would require that the companies … share a portion of future profits with the government”
Nothing new about that. It’s called income tax.
“Spokeswoman Dana Perino … told The Associated Press that the White House is now actively asking Congress to accelerate loans it first approved in September.”
That is, asking Congress to amend a giveaway that was always intended just to help Detroit. The “fuel-efficient vehicles” restriction is basically a fig leaf anyway; all the D3 have to do is suitably categorize some of their engineering payroll. I can certainly understand the White House’s reluctance to open the $700 billion grand jackpot to everyone with a tin cup.
I notice that Chuck has referred to the whole Fannie Mae/Freddie Mac catastrophe that Congress wholeheartedly enabled in the manner of “What do you mean ‘We’ white man?”
So it will go for this impending asteroid smashup of government largesse/supervision over the automotive industry. If they are reading the NYT for advice (which I am sure they do), they better hurry before all the smart guys running that enterprise run it into the ground too.
I wonder if “Aruba Baby” Ricky will manage to beat Pinch to the best C11 attorneys in NYC. Goodness gracious, send ’em the damn $25 bil. already, it’s chump change in the grand scheme of things. (Luckily there is no ink charge here at TTAC, because this DW series would banko you guys too.)
GM’s management may have won some kind of cluelessness award, but combine our esteemed Congress with the pundits circling the NY/DC airspace and a cluster**** of mythic proportions will be had. Ricky will be looking up from the WSJ on his beachfront property in 2 years, and thinking “Man, they thought I was an incompetent fool………”
Ok, a series of random thoughts, but it is late Friday, what do you expect? Coherence?
George Bush is an embarrasment. Even to Republicans. The son of a spineless President.
“Read my lips…”
I think this is much ado about nothing. At least nothing Wagoner knows anything about. Given that the GM accounting system has ‘material weaknesses’, Wagoner doesn’t know if they’re running out of money or not. My theory is that GM ran out of money seven months ago. So let’s just keep going until we hit something, or Detroit Edison cuts off the power whichever occurs second. I like the statement from the PBGC Director today.
“GM has not been able to give us a straight answer about the funded status of their pension plan,” said PBGC Director Charles Millard. “We can’t successfully monitor the situation if they are not responsive.”
share a portion of future profits with the government
Ha! This assumes that there might be profits in the future.