by Frank James
Looks like we could have an auto bailout deal between the White House and Congress by the end of the day.
As Jim Puzzanghera of the Tribune Washington bureau reports:
WASHINGTON - The White House said Monday morning it's "very likely" a deal will be reached today with Congress on a short-term bailout package for U.S. automakers.
Negotiations between the Bush administration and House and Senate Democratic leaders resumed Monday after a breakthrough Friday night on the source of the funding, said White House spokeswoman Dana Perino. The broad plan calls for about $15 billion to keep General Motors and Chrysler afloat until March 31. GM has told lawmakers it needs $10 billion and Chrysler has said it needed $4 billion for the period. Ford, the other of Detroit's Big Three, said it does not need any funding immediately, but said a failure by GM or Chrysler could cause it to fail as well because of numerous shared suppliers and dealers.
"From our discussion this weekend ... indications are that the legislation is moving more towards what the president could support," Perino told reporters. "We don't want any company to be insolvent, but we're going to require some things about viability and long-term commitment to making sure that companies can be competitive."
Some sticking points remain. House Speaker Nancy Pelosi (D-Calif.) agreed Friday to the White House demand that money for the automakers come from an existing $25 billion fund to retool their factories to produce more fuel-efficient cars. But Pelosi wants the money put back in the fund quickly. Also, Congress and the White House are working on a mechanism to oversee how the companies spend the money and that they are making major changes to become more financially viable.
Comments
Shouldn't it be called the "Soak the taxpayer" bill rather than a "bailout" bill?
Since soaking the taxpayer is the first result, the biggest result, and probably the only result of the proposed bill.
Posted by: Bruce | December 8, 2008 4:20 PM
Tell Congress what you think:
http://www.rallycongress.com/no-bailout-for-the-auto-industry/1409/
NO BAILOUT FOR THE AUTO INDUSTRY
Nancy Pelosi, with the help of Barney Frank, wants to bail out yet another failed sector of the economy. It is not government’s role to reward incompetent, overpaid executives pursuing a failed and anachronistic business model. The American auto industry is in trouble because it produces a shoddy, polluting, gas guzzling product at noncompetitive prices driven by trade union benefit packages. It is a waste of taxpayer money to try to shore up an industry that needs to be radically restructured. The Big Three should be allowed to fail and file for reorganization under Chapter 11 of the Bankruptcy Code. They will not cease to exist, but will be restructured under the supervision of the bankruptcy courts. Congress cannot do a better job than the courts. The courts will supervise the reorganization of the industry without being tempted to reward lobbyists, campaign contributors and unions for their political and financial support.
Congress must allow the economy, existing laws and judicial bodies to resolve the Big Three’s financial problems and not throw more taxpayer money away under a hasty and ill conceived bailout.
Posted by: Holly201 | December 8, 2008 4:20 PM
"House Speaker Nancy Pelosi (D-Calif.) agreed Friday to the White House demand that money for the automakers come from an existing $25 billion fund to retool their factories to produce more fuel-efficient cars. But Pelosi wants the money put back in the fund quickly."
This is called hide the ball. "Oh, the funds are already committed so we aren't spending any additional money. Oh, of course we must replenish the funds for the originally intended purpose."
Posted by: another citizen sickened by the dishonesty of Congress and the complacency of a lame duck president. | December 8, 2008 9:17 PM
Look out everyone were about ready to embark on 8 years of arrogance. With Reid, Pelosi, Dodd, and Frank at the helm. How in the world can these people ask for the head of GM, after the mess these same people created withe the banking crisis, sub prime loans and Freddie and Freddie. They should all bury their heads and then resign.
Posted by: Paul | December 9, 2008 8:50 AM