- Daily Photo: Obama Jokes Around at G-20
- Blackwater gets replaced in Iraq
- Daily Photo: U.S. Marines Look Out for Taliban in Afghanistan
- Hillary Clinton the Tomboy and Her "Ah-Ha" Moment
- Obama Administration Sudan Envoy Headed to Region
- Daily Photo: Potential Flashpoint in Iraq
- Clinton Says New Afghanistan-Pakistan Plan Depends on Diplomacy
- Exclusive: Three Israeli Airstrikes Against Sudan
- Additional 4,000 Troops to Be Ordered to Afghanistan
- Daily Photo: Navy Submarine Trains in the Arctic
- Alarm Over North Korea Missile Prep
- Anti-Terror Stimulus? US Offers Rewards for Top Terrorists
- Daily Photo: Pakistani Women in Refugee Camp
- Condoleezza Rice Appears on "The Tonight Show"
- Diplomat and Aid Group Sound the Alarm on Darfur Camp Situation
- auto industry rescue
- Ballotwatch
- Biden, Joe
- Bush, George W.
- Clinton, Bill
- Clinton, Hillary
- Dodd, Chris
- Edwards, John
- Giuliani, Rudy
- Gravel, Mike
- Huckabee, Mike
- Hunter, Duncan
- Inauguration
- Iraq
- Kucinich, Dennis
- McCain, John
- Obama, Barack
- Palin, Sarah
- Paul, Ron
- Romney, Mitt
- Tancredo, Tom
- Thompson, Fred
- Veepstakes
- Vote 2008: Democrats
- Vote 2008: Republicans
- Washington
- White House
« Previous | Main | Next »
Pelosi, Reid to Seek Automakers Bailout Next Week
November 11, 2008 4:26 PM
ABC News' Jonathan Karl reports: House Speaker Nancy Pelosi says she'll seek assistance for Detroit automakers during a lame-duck session next week.
The idea is to pass a bill opening up some of the $700 billion bailout money for the automakers.
I am told Pelosi will also likely seek an extension of unemployment benefits but wait until January for a major stimulus package.
"In order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry, Congress and the Bush Administration must take immediate action," reads a statement by Pelosi.
"Emergency assistance to the automobile industry would be conditioned on executive compensation restrictions, a prohibition on golden parachutes, rigorous independent oversight, and other taxpayer protections to ensure that any companies that benefit from this assistance – and not the taxpayers – bear the full burden of repaying any costs that are incurred."
And now Senate Majority Leader Harry Reid says he "determined" to pass legislation helping the automobile industry next week during a lame-duck session of Congress.
Reid's statement offers no specifics and reminds us that until January "we still have the slimmest of majorities in the Senate; this will only get done if President Bush and Senate Republicans work with us."
On that point:
The White House is lukewarm to Pelosi's idea of using some of the $700 billion banking bailout money for the automobile industry. One senior White House official told me it's "a slippery slope" and asked rhetorically, "who's next?"
The White House would prefer Congress pass legislation loosening the restriction on the $25 billion in loans Congress made available to Detroit in September. That money, under current law, must be used for fuel efficient technology. So far, not one dollar of it has been loaned. The auto industry says it needs money to stay alive, not to embark on new projects.
"Why does Speaker Pelosi absolutely refuse to use the $25 billion actually appropriated for the automobile industry?" asks the official. Answer: environmental groups don’t want the money to be diverted.
Meanwhile, the auto industry likes Pelosi's approach, but sees it as a stopgap measure until the new Congress passes something more comprehensive in January. As one auto industry source working with Congressional leaders told me, "We're talking about a bridge loan, a bridge to the stimulus."
November 11, 2008 in Washington | Permalink | User Comments (287)
You can follow this conversation by subscribing to the comment feed for this post.
rodney: my future nephew works for GM, he is in Sweden for a year. He is a engine designer for them, he graduated two years ago from college. He is over there training them right now on how to build those economy ethanol engines. Makes my heart heavy to see GM pull out of the United States to do this. I just pray that our government can come up with something to help them stay.
Posted by: becky (the real one) | Nov 11, 2008 5:08:53 PM
Chuck: sounds great only the prices of everything would go up to meet your income. Milk is now $4 a gallon, it will more than double if everyone received that money.
Posted by: becky (the real one) | Nov 11, 2008 5:11:03 PM
TODAY IT IS THE AMERICAN WAY----BIG BUSINESS IS IN CONTROLL --WE ARE THE FOOLS THAT PAY FOR THEM. NOW BUSH WANTS A TRADE AGREEMENT WITH COLOMBIA --WHAT A TRAITOR TO THE AMERICAN PEOPLE.
Posted by: rodney | Nov 11, 2008 5:11:39 PM
It might help if you Democrats understood what your party is about before you elected all these clowns. Bailout after bailout after bailout after bailout - How about a major stimulus too - Oh, extend unemployment payments to! MY GOODNESS, IT'S JUST BEGUN! At some point you'll figure out who PAYS for this - It's the middle class! Money doesn't grow on trees! You all EAT this "we'll make the world better" stuff up like it's candy - IT COSTS MONEY - Pleeease figure it out!!
Posted by: Mike H | Nov 11, 2008 5:12:39 PM
BECKY
THE GERMANS WILL PRODUCE A CAR NEXT YEAR---FOUR SEATS OVER 100 MILES PER GALLON----DIESEL AND WILL RUN ON VEGGI OIL----WE CAN DO THE SAME BUT WE HAVE TO OVERCOME THE CORRUPTION WITH BIG BUSINESS AND BIG OIL.THEY ARE IN CONTROLL OF OUR GOVERNMENT/
Posted by: rodney | Nov 11, 2008 5:15:17 PM
I wasn't for bailing out the banks and I'm not for bailing out these guys. They lived high on the hog for years, along with the unions, and now they want to suck us US taxpayers dry? I don't think so.
Pelosi has got to go.
Posted by: JDD | Nov 11, 2008 5:17:07 PM
LAST NEW CAR I PURCHASED IS A CHEVY TRAILBLAZER-----TALK ABOUT A EXPENSIVE PIECE OF CRAP.==AND IT IS CRAP
Posted by: rodney | Nov 11, 2008 5:17:12 PM
How about implementing a tax break for purchasers of new GM, Ford or Chrysler vehicles. While different than a loan, bailout or band-aid, it would get badly needed sales revenue to the Big 3, keep people employed (and paying taxes), and reward taxpayers/buyers who want to be a part of the economic solution. This could help get the economy and the Big Three back on their wheels. A focused tax credit would provide an incentive to buyers that would otherwise buy vehicles produced elsewhere and who would otherwise not be directly influenced by federal aid to the Big Three. I believe that if you help create and maintain jobs the rest of economic problems will correct themselves.
Posted by: Larry | Nov 11, 2008 5:18:20 PM
What ever happened to that huge building contract for military airplanes. Did it end up going out of the country??
Posted by: becky (the real one) | Nov 11, 2008 5:18:33 PM
Becky:
If everybody used the money to pay off their house they would be saving on average $1500 a month in paymets. I think I could afford Milk at $8 a gallon with no house payment!
Posted by: chuck | Nov 11, 2008 5:19:11 PM
Mike H: we would not have to bail anyone out if the Republicans did any work this past 8 years. Lame Ducks all of them.
Posted by: becky (the real one) | Nov 11, 2008 5:20:00 PM
DONT WORRY GANG --IF THE GAS PRICES STAY DOWN THE GUZZLER MARKET WILL REVIVE --AND IT WILL HAPPEN ALL OVER AGAIN.
Posted by: rodney | Nov 11, 2008 5:23:14 PM
Becky (the real one), I think the blinders are going to be ripped off your eyes in the next few years. It will become fully evident that BOTH parties contributed to where we are today and the Democrats in particular are to blame for the housing mess.
Special interests have gotten control of Washington and I seriously doubt that any of that is going to change, as evidenced by this story.
Posted by: JDD | Nov 11, 2008 5:24:10 PM
Pelosi is trying to upstage Obama! So cool, the Dems are already at it!
And Bush and Obama, wheeling, dealing. Two peas in a pod!
Posted by: independentview | Nov 11, 2008 5:25:46 PM
I WQS GOING TO PUT A HIGH EFFICIENCY DIESEL IN ONE OF MY VEHICLES --AND FOUND OUT I COULD GET ARRESTED FOR IT----THAT IS FREEDOM YOU CAN BELIEVE IN---TRY MAKING AND USING ALTERNATE FUELS AND SEE WHERE THAT GETS YOU-----THERE ARE A LOT OF CHANGES NEEDED IN OUR COUNTRY.
Posted by: rodney | Nov 11, 2008 5:27:56 PM
Chuck - As a republican , let me agree with you that Bush as his deregulation policies indeed are a big factor. But please, let the economy correct itself to some level. Just read the article again - Bailout, Stimulus, Unemployment extension...And Barack hasn't even started yet - I paid over 20K in taxes last year and I'm simple middle class. 1700 sq ft house, 30 year fixed loan with little other debt - let the clowns (the banks, the fools who purchased these insane loans) go down for the sake of all of us! Dems just get us deeper in the hole!
Posted by: Mike H | Nov 11, 2008 5:28:38 PM
Does it seem that congress is going about everything back arse wards? If you want to help car companies out why not make it affordable for people to buy them? Or if someone is defaulting on a home, extend their payment window, negotiate a better rate for them do everything you can to keep them from defaulting and when all else fails then allow some of these companies that made outrageous decisions to go bankrupt.
Posted by: david | Nov 11, 2008 5:30:59 PM
Well some of New York's mass transportation buses are running on hydrogen and now they're coming to PA that's a great step in the right direction. Can't it be done for the automobile? Will these automakers go in that direction? Gee oil is cheaper now but I'm not for polluting the air and financing the terrorists. Also, although oil is cheaper now, we're still stuck with the high food and living expenses, they're not going to return to pre oil hikes.
Posted by: Barb | Nov 11, 2008 5:32:31 PM
Becky I think you are a little misguided with your last comment. Let's not forget that Bush came into office at the time the country was in a recession and the internet bubble burst. We were than hit with 9/11 which the planning really took place under the nose of Mr. Clinton. Say what you want about President Bush, it was not until this past 6 months things really started going south. Need I remind you that the Dems have been in pwer now for the past 2 years, and they stopped a lot of legistlation which could have avoided the Fannie and Fredie mess!
Posted by: chuck | Nov 11, 2008 5:32:46 PM
rodney: it is was nice ride while it lasted. I filled up for $25 this weekend here in Iowa. Today it jumped 12 cents... wonder what tomorrow will bring!! scary!
Posted by: becky (the real one) | Nov 11, 2008 5:33:16 PM
Post a comment



