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Dodd: Dems Can't Pass Auto Bailout This Year
November 13, 2008 5:46 PM
ABC News' Z. Byron Wolf Reports from Capitol Hill: An architect of the original bailout bill said Thursday Democrats lack the votes to pass bill giving auto companies a piece of the $700 billion bailout pie next week.
"I want to help them if we can, but I'm not going to give anyone a blank check, so we're going to try and do something if we can next week. I don't think the votes are there. Candidly, I don't think we have the votes to get that done. With no big change between now and next Wednesday, I'm skeptical," said Sen. Chris Dodd, D-Conn., who chairs the Senate Banking Committee.
Even after January, Democrats will have to gain some Republican support in the Senate to pass a new rescue package for the automakers -- and that is looking less likely.
Republicans worry that every time Congress passes a rescue package for a new industry, others will line up to create a bailout soup kitchen line.
"Those are not illegitimate concerns obviously," said Dodd, "And you want to put conditions on any resources provided to an industry that hasn't managed itself very well, but its not going to serve any of our interests if a major automobile manufacturer goes out of business between now and Jan. 20th if we could step in and keep them vibrant, we might allow them to survive."
So, while the aim and focus of the TARP is elastic and evolving, it is looking less likely that the auto industry will get in on the action.
Democrats in the House and Senate made clear earlier this week that they'd like to see some of the $700 billion go to help the troubled U.S. auto industry, which directly and indirectly employs 1 in 10 U.S. workers.
But, Republicans Thursday indicated they will be less willing to sign a big new check for Detroit than they were to prop up the financial industry earlier this year.
"People up here don't get it," fumed one Senior Republican Thursday. "Bailouts are less popular than Congress."
Be it a rescue or a bailout, any new loans to the auto industry would represent another huge outlay of taxpayer dollars and that is what frustrates Republicans, when there are no taxpayer guarantees the new money would keep the auto industry solvent.
"Spending billions of additional federal tax dollars with no promises to reform the root causes crippling automakers' competitiveness around the world is neither fair to taxpayers nor sound fiscal policy," said House Republican Leader John Boehner in a statement Thursday.
And if Republicans band against a bailout for the auto industry, Democrats admit there is no way it can pass this year, and it might be tough next year too.
House Financial Services Committee Chairman Barney Frank, D-Mass., an architect of the $700 billion rescue package, is said to be crafting a sub-rescue package for the auto industry, which would cut a check from that $700 billion to the prop up the U.S. automakers. Frank's committee will grill the CEOs of the Big Three American automakers in a hearing next week.
But, Congress authorized $25 billion in preferred loans to the auto industry earlier this fall. The money is tied up in red tape and must be used to update facilities for production of more fuel efficient vehicles.
Rather than dipping into the $700 billion originally aimed at Wall Street and the financial industry, Republicans would rather re-tool those loans to make them more immediately available and not constrict their use to creating more fuel efficient vehicles.
Mitch McConnell, the Republican leader in the Senate (and the most powerful Republican in the land when President Bush is no longer president) has not rejected the idea of a bailout for the auto industry.
But his spokesman Don Stewart said Thursday that Congress should consider how to use the billions in loans already thrown at the auto industry before allocating new money.
“Earlier this year, Congress acted in a bipartisan way to help the auto industry and protect jobs. The Congress passed and the president signed legislation authorizing $25 billion in low-interest loans to help American automakers re-tool their facilities to make the fuel-efficient cars of the future. It may be that there are changes that need to be made in order to expedite these low-interest loans. Other ideas have been floated and all will receive a review as we approach the Senate’s return next week," said Stewart.
Democrats realize that until January, when Barack Obama becomes President, they can't get anything done without the cooperation of Republicans first in the Senate and ultimately in the White House, where President Bush is no fan of another bailout/rescue.
November 13, 2008 in Dodd, Chris, Vote 2008: Democrats, Vote 2008: Republicans, Washington, White House | Permalink | User Comments (28)
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We should all as a nation show our true patriotism and support our country, while being "Conservative".
You should be saying "Yes" on a vote to Bailout the "American Auto Makers". I know Ford and GM both met the request of "President Clinton and VP Gore" to build hybrids that ran on the unlimited supply of natural gas here in the United States. Many of our countries municipalities have purchased their vehicles and benefited from the cost saving "CNG" provided, while cleaning up the environment with virtually no Emission. Massachusetts has shown the initiative to "Go Green" with Mass Highway Department vehicles. I believe Mass has over 15% of their vehicle now running on "CNG". Why haven't the news programs and the rest of the conservative radio shows talked about the easy ways to fix this country's economic headaches. You guys use words like Pro-Growth, Conservative, Patriotism and Environmentally Responsible. Do the people of this nation, news channels and conservative radio industry believe in any of those words or just like saying them? I think all of them could be used in the same paragraph believe it or not regarding the U.S. Auto Industry.
We need someone to finish mandating the installation of "CNG" gas stations that the Republican Party has side tracked for so long (twelve years). So that they could keep collecting their dividends from their Exxon Stocks. That was a shame! We could have freed of the U.S. need from foreign oil a long time ago. Which would have lowered our home heating oil costs, the price of diesel fuel to the trucking industry, as well as this nation’s consumption of gas as we know it. That would lower the cost of gas worldwide. Not to mention if congress required each town to have as least one gas station put in the "CNG" (Compressed Natural Gas) pumps, there would be construction jobs created nationwide (Massachusetts too), taxes, building permits and fees collected by cities and towns to spur every State’s local economy. Drilling for more oil will only continue the oil industry's strangle hold on our nation. Gas stations could bid for the rights to their city or town's "CNG" station. If that was not fair we could draw straws, LOL.
Each station willing to install the "CNG" pumps could receive a tax break for their trouble and a thank you from the "Green Team of America". Maybe the rest of you would stop bashing each other and take this fight to your State's Congressman or Senator. There must be someone on the other side of this monitor of mine that believes in rebuilding America from the ground up. It starts with the "CNG" tanks for the public to fill up at being installed all around this great country of ours. GM, Chrysler and Ford have been patiently waiting for almost fifteen years for our government to follow though with the promises to the “Big Three” to go green with “CNG” within the next ten years (Said in 1997/1998). Electric “Hybrids are nice, but do not create enough power for larger vehicles for long over the road trips with a load in or behind them (Towing). “CNG” engines have virtually the same amount of pulling power as a similar equipped gas engine. Well, ten years have come and gone for the “Big Three” and no government support yet to go green. Let's get started for once instead of just talking about it!!!
The U.S. Auto Makers are building quality autos. If the world thought as negatively as you and the general pubic, Mercedes Benz would have never purchased Chrysler several years ago. They could see the quality, but had to sell off Chrysler when they realized how the media in this country are bias in their belief that only foreign automobile manufacturers build a competitive/quality car or truck. They saw the market share of Chrysler continue to drop off even with the Mercedes "High Quality" name tag behind them. That is also a shame!
After 9/11 the "Big Three" donated 12 Million plus dollars to the relief efforts, Toyota and Honda Gave Zero. There is something to be proud of, true "Patriotism". During World War II, GM shut down their Plants and changed over to build the United States of America tanks to protect our country. Maybe it is our turn to return the favor.
The Big Thee deserve a "Bailout" and the media support for once in the last ten years! We as nation should stop being our own worst enemy! That is why the world has stopped looking at the United States as a leader.
Posted by: KP | Nov 15, 2008 2:38:36 PM
The only reason possible to bailout the auto industry is 1: to alleviate the impact on the mutual funds owned by millions through personal accounts, ira's and pensions and 2: to prevent a larger increase in unemployment if the auto industry goes under. The auto makers by all rights should go bankrupt for the mismanagement, giving in to the UAW each time there was a contract, perpetuating the nanny state endorsed by UAW and the Dems, and for creating products that no one wants to buy. Of course the Dems will give the unions exactly what they want as a payback for the union support. Unions are special interests and they only want as much money as they can get and the Dems will cave in every time. Welcome to the world of Democratic control.
Posted by: jschmidt | Nov 15, 2008 2:58:03 PM
I make about $14 per hour and it infuriates me that taxes might be taken out of my check to pay for some walking-dead dinosaur company like GM and $73 per hour UAW workers. They refuse to make quality vehicles with good gas milage that are more affordable than the completition. They are just an international company like Honda in Ohio (Mexico plants, etc). When our kitchen puts too much salt and ruins a dish we don't pick out each grain -easier to wipe the slate clean and start over again without all the baggage. If they get a bail out, I want one too. Bailing out is moral hazard -it rewards bad decisions -look it up. We need to put our efforts into fresh new companies that have a more environmental focus. It makes me want to almost cry that the guuvment just wants to reward the status quo of wall street fat cats auto execs & UAW members that feel entitled. Sure the transition will be painful -but as the song says it has to be a catastrophe (temporary) TO GROW!!! Go USA -down with GM. If GM is gone it does not mean that people will stop buying US cars so the domino effect is overstated.
Posted by: Matt Boynton | Nov 16, 2008 12:52:46 AM
There should be No Auto Bailout, Ever!
Let the Little Three go into Bankruptcy!
Force them to streamline their
operations, cut the outrageous wages
paid to workers from $78 an Hour at
least in half and cut the benefits
big time! Then Force the Little Three
to actually compete with Toyota, Honda
etc by making fuel efficient cars that get at least 30 MPG, 35 MPG would be
better! No More Bailouts!
Posted by: reaganfan | Nov 16, 2008 6:14:30 PM
Thank you Ashley, you are correct. What makes me laugh is how people keep said how GM and Ford are not building fuel efficient car and trucks. GM has the most vehicles getting over 30 MPG. Ford is not far behind. Honda Ridgeline is small truck, but only gets 16-17 miles per gallon. Say what you want, but both full size Ford F150 Pickup and Chevrolet Silverado 1500 Pickup are much larger and still get 21 MPG. Do you know this is the only country in the world that sells itself short when looking at the quality of their Automobiles. Mercedes Benz sold off Chrysler after they realized, no matter how good the quality has become, the media and the idiots in this country that listen to them will make it hard to overcome market conditions. That is a Shame!!
Posted by: KP | Nov 17, 2008 7:33:18 PM
I can't wait to see and listen to all of you baby boomers starting to collect Social Security and will have a shortage sooner, rather than later. Only you morons belief there is ever a surplus in the Social Security Trust Fund. You need jobs here in the U.S. to pay in each year for the money to be there next year. They Zero that account out every year after they calculate who qualifies to recieve it the following year. God you guy know so little and claim to know so much. LOL, as they say, the person to speaks the loudest/most, most likely knows the least.
Posted by: KP | Nov 17, 2008 7:33:47 PM
I'll laugh when the rest of you have your mother and father living with you. Not, because their no longer of sound mind. It will be because their Social Security check isn't enough to cover their average living expenses. You voted to finish off their IRA/Mutual Funds invested in the U.S. Auto industry. Hope you have an extra bedroom and a few extra thousand dollars you can throw their way. They'll need it, LOL
Posted by: KP | Nov 17, 2008 7:40:34 PM
i heard that there was a suggestion to give the taxpaying people 60 thousand dollars to each person or family to buy an american made green vehicle instead of just giving the money to the auto dealerships and this way the autodealers would still get the money threw us buying a car , and i also heard it would cost less to do it, i personally think if i am going to pay taxes on some bail out , it would be nice to have a piece of it
Posted by: nicci | Dec 9, 2008 2:09:22 PM
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