The Bail Out Era…? 9 November 2008Posted by marisacat in 2008 Election, DC Politics, Democrats, Inconvenient Voice of the Voter, U.S. House, U.S. Senate, WAR!.
I should assume that some one from Detroit assumed the position in front of Nancy.. ?? The position that Paulson last held..?? On his knees before Madame Speaker..??
Reid, Pelosi Urge Treasury to Extend Aid to Automakers
By Lori Montgomery
Washington Post Staff Writer
Sunday, November 9, 2008; A01
With the nation’s automotive industry hemorrhaging cash, congressional leaders called on the Bush administration yesterday to offer government assistance to the car companies as part of the Treasury Department’s $700 billion emergency rescue program.
The call came one day after General Motors, the nation’s largest auto manufacturer, announced another multibillion dollar loss for the third quarter and said it was running out of money fast. Ford, the second-biggest car company, also reported heavy losses. Unless the government steps in, analysts warned, GM could face bankruptcy, endangering the livelihoods of about 100,000 North American autoworkers and hundreds of thousands of others whose jobs depend on the industry.
In a letter to Treasury Secretary Henry M. Paulson Jr., House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry M. Reid (D-Nev.) asked Paulson to “review the feasibility . . . of providing temporary assistance to the automobile industry during the current financial crisis.”
The letter notes that Congress granted Paulson broad discretion to use the bailout money to “restore financial market stability. A healthy automobile manufacturing sector is essential to the restoration of financial market security,” the letter continues, as well as to “the overall health of our economy, and the livelihood of the automobile sector’s workforce.”
OhKay! If we all declare ourselves bankers can we all instantly keep bankers hours? That would work for me…
A plan is in the works at the Treasury to use bailout money to take ownership stakes in a wide array of companies beyond the banking sector. But Treasury officials have indicated that participants in its recapitalization program must be financial firms subject to federal regulation. That means GMAC, GM’s auto financing arm, may be eligible for quick help, but GM itself may not.
I am working on some nickname having to do with drooling yeses as they ransack the taxpayer…
In recent days, top auto industry executives have been making the rounds in Washington, trying to shake loose federal cash from a variety of sources. And there are strong indications that Democrats, newly empowered in Tuesday’s election, are inclined to oblige.
And yes.. I did notice:
Obama’s team of economic advisers includes Michigan Gov. Jennifer Granholm (D) and former Michigan congressman David Bonior, who is considered a strong candidate for Labor secretary. With Granholm on stage with him Friday, Obama said his transition team is already working on “policy options to help the auto industry adjust, weather the financial crisis and succeed in producing fuel-efficient cars,” either under existing law or through the passage of “additional legislation.”
Bonior no doubt needs something massaged after all that support for the new dad.
And, I am left supporting red tape, in all its glory:
In the meantime, however, the automakers have gotten little but sympathy. Congress recently voted to fund a $25 billion low-interest loan package intended to help the car companies retool their factories to produce fuel-efficient vehicles that meet tough new emissions standards. But that money has been hung up by red tape. Obama and other Democrats have discussed providing another $25 billion in loans, bringing the total federal aid to $50 billion. But unless the Bush administration agrees to work on an economic stimulus package when Congress returns to Washington later this month, that money would have to wait until at least January.
From The Hill:
Pelosi and Reid on Thursday met with representatives of the auto industry, stating that they “left the meetings convinced that our nation’s automobile industry – the heart of our manufacturing sector – and the jobs of tens of thousands of American workers are at risk.”
However, while lobbying that funds be made available, Reid and Pelosi also urged that Paulson “impose strong conditions on such assistance in order to protect taxpayers and maximize the potential for the industry’s recovery.”
“An automobile industry that is forward-looking and focused on ingenuity, competitiveness, and the creation of green jobs for the future is essential to its long-term viability,” they wrote.
Maybe if you subject the automakers to an 8 on the Richter scale earthquake they might get forward looking… basically, the dirty not-so-little secret was 30 years of presumably predictable income from financing cars matched with poor R & D and reinvestment.
Maybe they can accidentally get around to extending unemployment benefits… and working out a bail out for states (we’re one of them) already about to deplete the funds for those benefits…
Can we get in line for change? Too? Even if we are near the end of the line, at least it is something..? Right?
[I am thinking of a new category for post Jan 20.. something along the lines of "Change of Life"]
LOL There’s always privilege and ease for the insiders… I did get a kick out of this photo at LAT on presidential pets..
The 11 o’clock news here mentioned that the biggest turn out tonight was in San Diego, 10,000 marched against passage of Prop 8…