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Dems Give White House Ultimatum on Auto Bailout
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ShareDecember 04, 2008 8:32 PM
ABC News' Z. Byron Wolf Reports: Democrats sent a clear message to the White House tonight - make some of the $700 financial industry bailout money available to the domestic auto industry or else. And they want an answer by Friday.
Auto makers returned to Capitol Hill today two weeks after a chilly reception from bailout weary lawmakers.
And while pleas from GM, Chrysler and Ford for bridge loans seemed to have some effect, prospects remain dim for an auto industry bailout passing Congress this year even though any later could spell the end of GM, according to prepared testimony from CEO Rick Wagoner.
The White House and Treasury Secretary Henry Paulson have rejected the notion of using money from the so-called TARP - a $700 billion package passed by Congress in October to stabilize the financial industry.
But in a letter Thursday night, Democratic leaders in the House and Senate told President Bush he must commit funds from either the TARP or the federal reserve or they will be unable to pass anything in Congress.
"Your decision to utilize the TARP funds, or to work with the Federal Reserve to make available assistance through its existing lending programs, or both, are essential to the Congress’ ability to address this critical economic situation in a timely manner, and would also eliminate the uncertainties inherent in the legislative process, " say Senate Makority Leader Harry Reid, House Speaker Nancy Pelosi and Democratic committee chairmen in the letter.
They go on: "We are very hopeful that we can work cooperatively with the Administration and the Federal Reserve to provide urgent assistance and support our domestic auto industry, just as other nations are doing, during this extraordinarily difficult global economic collapse. We look forward to hearing from you on an expedited basis, since we will be notifying colleagues tomorrow of next week’s session
December 4, 2008 | Permalink | User Comments (791)
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Thank you obstructionist Democrats. One good crook deserves another. House Republicans fight the bailout, and the DNC tries to blackmail the laim duck into bailing out the auto industry who has outsourced american jobs overseas. The Democrats should choke on it! And the Republicans should let 'em ROT!!!
Posted by: please! | Dec 4, 2008 8:59:37 PM
It's become political. If Bush agrees and it doesn't work, the dems can blame Bush. If he agrees and it does work (which I doubt), then the dems say they had to force his hand to do the right thing. If he doesn't agree and the Beg 3 go belly up, it's Bushes fault, If he doesn't agree and they don't go belly up and file chapter 11, the dems will still take credit. Such is the way of Washington politics.
Posted by: LongT | Dec 4, 2008 9:01:00 PM
"Or else" ? Mr. President, do not give them anything........
Posted by: larryesperando | Dec 4, 2008 9:03:11 PM
NO BAILOUT FOR THE AUTO INDUSTRY!
Posted by: rdf | Dec 4, 2008 9:06:17 PM
Why is everything politics with the Democrats.
Please, just once, do something for the country and not your reelection.
Posted by: donbl | Dec 4, 2008 9:08:17 PM
Everybody seems to forget the millions of people who need the auto industry to support their families!!!! What about them? What about my family? Why punish us for others mistakes? Think about other people for once....
Posted by: brwil | Dec 4, 2008 9:13:11 PM
Ha, now this is funny. The Dems in congress can't or don't want to make a decision so they Bush to bail them out of being held accountable. Stiffs.
Posted by: chuck | Dec 4, 2008 9:14:20 PM
Bush for wall street
Dems for auto street
Posted by: driivecom | Dec 4, 2008 9:16:53 PM
How is this a threat?
"Democratic leaders in the House and Senate told President Bush he must commit funds from either the TARP or the federal reserve or they will be unable to pass anything in Congress."
They were unable to pass anything in Congress for the last 8 years.
Posted by: Frederick MIchael | Dec 4, 2008 9:17:03 PM
Why should tax payers give the auto industry one penny? Those guys will just waste the money and then come back again asking for more money.
Posted by: James in San Diego | Dec 4, 2008 9:17:12 PM
Or else WHAT?!! These clowns have done zip nada zilch since 2006. They denied the GSE needed any oversight, lied about FNMA and FMAC corruption and brought this crisis on our country... the world, actually, in the first place. They've gotten rich, and they passed that minimum wage increase stuck in a defense funding bill. Let Obama bail out the union bums in MI who vote Dem anyway.
Posted by: BridgeLoanToNowhere | Dec 4, 2008 9:19:48 PM
We need a strong "Third" party in this country to balance out these idiots. why bail out these jerks? They have sold the public "crappy" vehicles for decades and expect Americans to buy their garbage. I have no sympathy for these clowns...let them go down hard.
Posted by: tony bell | Dec 4, 2008 9:19:55 PM
There's a Senate makority leader now?
Posted by: Sherwin L. | Dec 4, 2008 9:20:01 PM
I was adamently opposed to the bailout and wrote my congressmen repeatedly saying VOTE NO. But, now that it's passed and the the money is going to be spent anyway, why should it be just to help the crooked Wall Street thieves and not the US automakers also? At least the automakers have come back with some sensible business plans and concessions. The failed financial crooks are still handing out multi-million dollar bonuses and wasting money left and right.
Posted by: RobbieSue | Dec 4, 2008 9:20:02 PM
Typical Democrats in the Obama mold. Force someone else to make a tough decision, don't actually make one yourself. Pass the buck - or vote present - it's all the same anyways.
Posted by: Jim | Dec 4, 2008 9:20:25 PM
"Why punish us for others mistakes?"
Precisely.
Why should the rest of us pay for the auto inudstry's stupidity?
Why should the rest of us have to pick up the check for the UAW and it's idiocy in not doing anything to help stop the bad decisions?
Why should electricians making $40 an hour bail out auto workers making $80 an hour?
Why does America owe auto workers a living?
Posted by: drjohn | Dec 4, 2008 9:21:04 PM
I see a post by brwil that says "Why punish us for others mistakes?" Now the vast majority of working Americans work for companies who will get NO federal assistance if they go belly up. It's something that you're supposed to realize before you decide to work somewhere.
Posted by: worker | Dec 4, 2008 9:21:10 PM
There is really only one way to change the direction of the US auto industry - at least within a 2-3 year time frame. Chapter 11 allows EVERYTHING to get restructured including the management and board. A "bridge loan" only prolongs the inevitable.
Posted by: EKW | Dec 4, 2008 9:22:04 PM
BTW, Wall St. can also go to hell.
Posted by: drjohn | Dec 4, 2008 9:22:12 PM
During the election for President did we not hear the Democrats lambaste McCain on the "bailout"? Obama voted for it, and now the Senate is pushing for even more money for the UAW. Why can't the UAW loan the money to the automakers?????
Posted by: Bob | Dec 4, 2008 9:22:42 PM
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