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White House Moves Toward Auto Bailout
Steven Mufson
Washington Post
Saturday, Dec 13, 2008
The Bush administration yesterday moved to pull Detroit’s automakers back from the brink, saying it would drop its opposition to tapping the $700 billion financial industry rescue package to help General Motors and Chrysler survive through year’s end.
The White House said it would explore all financing options, including drawing on the Treasury’s Troubled Asset Relief Program, which until now has been used exclusively to aid banks and other financial firms. The automakers and some members of Congress were also hoping that the Federal Reserve would make a loan to aid the firms and preserve tens of thousands of jobs. But the Fed has strongly resisted such entreaties and has said it would be “extremely reluctant” to lend to the companies.
“We need these loans, and we’re not particularly fussy about how we get the loans or where they come from,” said GM board member George M.C. Fisher, retired chief executive of Eastman Kodak.
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The White House announcement set off new rounds of negotiations over the terms of federal aid, such as whether the Treasury would require management changes and how big an equity stake the government would demand in return for the use of taxpayer funds.
General Motors and Chrysler say they need the money to avoid running out of cash before the end of the year and to avert a domino effect that would threaten the viability of a variety of smaller companies that supply parts to the big manufacturers.
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December 13th, 2008 at 7:46 am
Let them fall!
December 13th, 2008 at 9:10 am
Called the White House to tell them to STOP the Bailout of Detroit. Lotta good that will do as Bushhhhhh doesn’t want them to crash on his watch but crash they will. Government has initiated our monetary crisis and has NEVER had their hands held to the fire for bankrupting us. Hell, they have never bothered to balance the FED checkbook. You and I, on the other hand, have no choice but to balance.
Sooner or later (probably sooner) we are going to face a rebellion of epic propotions. Jefferson oft stated that was not a bad thing and sometimes needed to reign in our government gone WILD.
Who amongst you will kneel before the all powerful FED or will will you have the strength and stamina to stand up against this attrocious behavior. The clock is ticking.
I think that when we reach unemployment of around 25% the rebellion will begin.
Labor unions = votes for whomever supports them
Welfare recipients = same
Combine both and you have the Democrat voting base. You get the picture.
Wake up America, life as we knew it is gone for a very long time. We’ll only get it back when we reinstate the rule of law as definened by the founding Fathers Constitution and Decleration of Indepence.
It’s all just waiting to explode.
God help us all.
December 13th, 2008 at 9:29 am
You may think you want the Big Three to fail, but trust me, you don’t. I work for a supplier that sells to them, in addition to selling to Toyota, Nissan, Honda and Kia. If Chrysler and GM fail, the company I work for goes under and Ford will then fail because many other suppliers that sell to Ford also sell to GM and Chrysler. The foreign carmakers might also fold because of this.
In the past six years that I’ve worked for this supplier, yearly profits have shrunk from $12 million to less than $1 million. The reason? The Big Three have been trimming themselves down. Despite the crap you hear from Congress about it being their fault for not building eco-friendly matchbox-sized cars, the truth is they do have cars with comparable fuel efficiency and their quality is on par with the foreign automakers.
The Big Three have become whipping boys because people are pissed off about the $700 billion Wall Street bailout. If it weren’t for the Wall Street mess created and encouraged by government, they wouldn’t be asking the government for money.
If we lose the Big Three, this economy is completely toast. Up to 3 million jobs will be lost. Do you people really want that?
December 13th, 2008 at 7:34 pm
How can you bail anything out with Crane Paper, and that is all it is.
December 13th, 2008 at 7:42 pm
The Federal Reserve is owned by the very rich elite that you worship. That the Repubs gave tax breaks to and told you to get ready for trickle down time. The RICH own the FED and you still worship them and are scarred to hell of them.