GOP to Detroit: Drop dead. Obama wants auto czar.

[n2doc]

Looks like there will be no auto bail out with this Congress and this president. The NYT reports today:

The prospects of a government rescue for the foundering American automakers dwindled Thursday as Democratic Congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck session next week.

Nor does it appear that Bush supports any action. What does this mean? “Some industry experts fear that one of the Big Three automakers will collapse before then.” This is GOP tough love.

Again, I don’t know that anybody should shed too many tears for the Big Three/Medium Two, but I would at the very least accelerate the $25 billion retooling loan to them — only with major strings attached (see “Why bail out the car companies when they bailed out on us?“). It looks like Obama agrees, according to today’s Washington Post piece, “Obama Ties Automaker Rescue to Regulation“:

http://climateprogress.org/2008/11/14/gop-to-detroit-drop-dead-obama-wants-auto-czar/#more-4222


snip:

Again, bankruptcy is probably a better near-term option than simply handing the car companies a blank check (see Pearlstein: “A Detroit Bankruptcy Beats a Bailout”). But helping Detroit make a rapid transition to high fuel efficiency cars and advanced hybrids would be the best option of all.


My comment:Amazing how we can hand trillions of dollars to companies who produce nothing of tangible value, while saying drop dead to companies with millions of workers (direct and indirect). Bushworld in action.

[Triana]

1. The SOONER we can get the bu$hit's ass out of our face on these issues....

...the better.

I totally agree with NO bailout for automakers without stipulations and regulations. We NEED to help them retool for fuel efficiency and environmentally friendly vehicles to jumpstart (pun intended) the move towards that. AND another stipulation must be that NONE of the jobs created by this effort are sent overseas. That is the only way a bailout for US automakers should be arranged. Obama could/would do it. But NOT with the BFEE in the way. They'd rather see them fail than DO anything sensible to save them.

[Democrats_win]

2. The "wisdom" of George W.orst Bush. Look how letting Lehman fail worked out.

That's what began it all. Wonder how letting Detroit fail will work out? As our "grate" leader George W.orst Bush says, "History shows..." Of course he can't remember the history of two months ago! That history shows we lost $2 trillion. Bush may be run out of office yet.

[stray cat]

3. I've got mixed feelings on the auto industry bail out -

I'm against giving them cash or even letting the current leadership profit by it - maybe it would be better to let companies start from scratch to build efficient safe cars.

[bdamomma]

4. true, but what about those workers who will loose jobs.

[skeewee08]

5. I am from Michigan (now live in Oklahoma_

my Grandfather and Father both worked for GM, I have family & friend's that are still employed and I tell you, the workers don't need to be punished for CEO incompetence. There will be a lot of men & women that will loose their jobs if we don't help them out. Just think of the men & women who work in the plants.

[Winterblues]

6. When they claim Chapter 11 they don't have to pay their vendors

Small business that supply parts and transportation will just get screwed and they are already hurting badly. Is that what you want when you suggest it may be for the best for the Auto makers to declare bankrupcy? The big wigs will not get hurt even the slightest. They will still keep ghetting their enormous salaries but the workers will lose their pensions and retirement..

[Initech]

7. No more handouts!!! Look at how AIG abused theirs!

Unless we heavily regulate how these bailouts are spent and monitor every single penny spent, no more freebies!

[This One]

8. Why not nationalize GM and use it to create green cars?

Makes more sense than loaning $25B to a company with a market cap of $1.8B.