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Dems Give White House Ultimatum on Auto Bailout
December 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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Please everyone, help out the millions of people who's jobs contribute to making parts for cars, their income to then pay their rent or mortgage, food, and other bills ! Give them the bridge loan then when the economy turns around everyone can pat each other on the back and say we won ! HELP ... how did we forget the reason for the season !
Posted by: B | Dec 4, 2008 9:22:59 PM
It's time for Bush to behave like a Democrat - deflect responsibility. He should write a letter back. "I'll do whatever President-Elect Obama tells me to do."
Posted by: MichelleO | Dec 4, 2008 9:23:40 PM
Bush should call their bluff. They're trying to pin this on him in case everything goes up in flames.
Posted by: john | Dec 4, 2008 9:23:49 PM
Mr. President,
Let the dem's know they can stuff it where sun doesn't shine. Leave this bad policy decsion all on them and force them to vote for new bailout money. Cut the spicket off. Maybe bankruptcy is exactly what these poorly run and poorly unionized businesses need.
Posted by: Lee | Dec 4, 2008 9:23:52 PM
Do you all realize the effect of these 3 liquidating? Try $35 Billion in unemployment claims for starters. There are whole towns and cities in California who live and die by Nissan truck plants... yes, Chrysler manufactures Nissan trucks in California. They make parts and components in rural towns ALL across America, oh and don't forget the VW routen minivan that is manufactured in the US by Chrysler, and that Mercedes plant in Alabama? Gone too.
Do your friggin homework. You're talking about a depression if these 3 fail, and that's just for starters.
Posted by: bjs | Dec 4, 2008 9:23:58 PM
Welcome to the United Socialist of America, for we are no longer a capitalist nation. Have the oil companies bail-out the auto industry. They need each other.
Now that would be capitalism at work.
Posted by: BamBamAJ | Dec 4, 2008 9:25:35 PM
If the dems want to give it so bad, let them bring it up for vote so all could see that public opinion don't mean squat to them. This kind of threat will only turn the independents back to the republican side in 2010. Whether your for it or against it, the people have spoken and their wishes should be respected. Just who in the heck do they think they are. Now that they have firmly politicized this, the "Big 3" car sales will really bottom out if they go against the taxpayers wishes. If they really want to help the "big 3" they should offer $10,000 tax incentive for buying american made autos. At least the consumer would benefit from the money being thrown around.
Posted by: Will | Dec 4, 2008 9:26:59 PM
Reid and Pelosi cannot find votes from their Democratic Congress so they're going to coerce Bush into doing what they can't get done?
What total jerks.
Posted by: drjohn | Dec 4, 2008 9:27:03 PM
why are we bailing out the financial sector too? They'll just squander our money and live like kings and queens. Let them all fail, and let God sort it out. Or at least we could go with a reboot or a fresh start, after hitting the bottom and the skids.
Posted by: Longshot | Dec 4, 2008 9:28:04 PM
BJS - Let them all die. They have been too fat and unresponsive to the market for years. The Democrats have fought Bush for years, and created this mess. Let em rot in h%^LL.
Posted by: Bob | Dec 4, 2008 9:28:04 PM
The big 3 simply are not viable entities with their bloated labor costs. Until that elephant in the room is addressed, no federal money. And no 'we promise to re-open labor negotiations' is not enough. A 20-30% pay cut is better than a 100% pay cut when the big 3 go under.
Posted by: AJ | Dec 4, 2008 9:28:59 PM
"why are we bailing out the financial sector too?"
Do as I have done. Write to all your representatives and demand the bailouts/handouts stop.
Posted by: drjohn | Dec 4, 2008 9:29:54 PM
Why not give everybody in America a $5000.00 car credit to use with only American car makers? At least we would get some good out of the deal and it would help auto makers too? No, that makes too much sense.
Posted by: Ron in Georgia | Dec 4, 2008 9:30:49 PM
The auto industry needs a root canal and the Democrats think a couple of aspirin will make the problem go away. If Chapter 11 ia OK for the airline industry it should be good enough for the auto industry. BTW, these problems didn't just show up with the economic crisis, the Big 3 bigwigs have been screwing up for decades.
Posted by: Tom Campbell | Dec 4, 2008 9:31:31 PM
"make some of the $700 financial industry bailout money available to the domestic auto industry or else."
Or else what?? Bush is on his way out, so what are you clowns going to do??
Why don't the Dems bring up the fact that the foreign car makers here in the U.S. pay their American workers 40 percent less than the Big 3?? Oops! Can't risk those union votes!
No more charity to ANY industry! Where's MY bailout? Stay the hell out of my wallet!!!!
Welcome to the USSA - The United Socialist States of America
Posted by: pwhited | Dec 4, 2008 9:33:20 PM
For those of you who worry about the "Big 3" going belly up and fading into the sunset, that's the last thing that the "Big 3" would want. If they don't get the dough, then they'll do whatever they SHOULD do, namely Chapter 11, and come back even stronger. Even if they throw money at them, with the economy the way it is, and the anger from over 60% of taxpayers who are saying enough is enough, they won't be selling many cars anyway. The money they get will only let them continue their lavish lifestyles for a little longer.
Posted by: Will | Dec 4, 2008 9:34:34 PM
If Cheney would just tell "W" what to do
even if the congress would pass a bill... Bush would have to sign it
Bush already has the money... he and Paulson want to skim some of it off wall street.
Posted by: mr sleepy | Dec 4, 2008 9:35:18 PM
"Posted by: brwil | Dec 4, 2008 9:13:11 PM"
You're kidding right? You want taxpayers to subsidize private industry jobs? What happens when all of the Big 3 fail to return to profitability because they can't get the master extortionists the UAW to agree to wage and benefit agreements in line with reality? More taxpayer money? Bankruptcy will NOT mean the end of the Big 3 although it will be the end of the UAW and their support of Democrats.
Posted by: Eric | Dec 4, 2008 9:36:07 PM
I would say they can have bailout money on three conditions: #1- Dissolve the UAW. The workers will be re-hired on at a decent wage and when it comes time they are told to get to work or they are fired, they will simply be fired. Remember Ronald Reagan with the air traffic controllers strike? this should be the same. That's right. No more UAW. No more union labor that helped mightily to get them into this. #2- New management at all three companies, with Lee Iacocca's playbook in hand. #3-The government owns interest in the companies until the loans are paid back in full and they are profitable again.
Posted by: DSS | Dec 4, 2008 9:36:19 PM
Dear Mr. President and Congress,
As a member of the United States Marines, I would like to ask the Congress and current Administration for an immediate bailout. I don't really need the money to survive, but then again neither does anyone you are willing to help. If it would help expedite the process I am willing to rack on an enormous amount of debt and then blame it on the American people.That seems to be the way to get what we want. So Mr. President and Congress, I urge you to accept this bailout proposal as it could be essential to my future well being.
How pathetic!! We really need to start taking responsibility for our actions and stop expecting others to take care of us. Whatever happened to the old days when if you ran out of money you went out of business. If the government had bailed out every other automaker in history we would now be bailing out the big 10,000 and not the Big 3. It really is time to grow up.
Posted by: Jeremy | Dec 4, 2008 9:37:34 PM
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