Are You Paying Attention To Congress and The Big 3 Auto Bailout?
At least the Big 3 Executives have gone from flying private jets to driving hybrids to Washington. That is not enough reason to “gift” billions of dollars to the Big 3 Executives who through mismanagement and poor vision have destroyed their companies and made the major players in the American automotive industry colossal dinosaurs compared to the technologies coming out of Asia and Europe. Is this our fault? Should we be paying for it? Why has Detroit been peddling luxury and “status” cars for the 10% of the population that can afford them instead of gearing their designs, plants and marketing projections toward the 90% of the population that actually NEEDS cars that go more than 10 miles to the gallon? How many of you bought extended warranties on your American made cars and then had the Big 3 tell you that they would not honor it because “they couldn’t get your vehicle to do what you said it was doing”? Is it any wonder that Toyota and Nissan are kicking Detroit’s behind?
Now we have Congress talking to the White House about a $15B Bridge Loan that will enable the Big 3 to make it through the early part of the year….but with conditions; sounding a lot like the Government is going into the Car Business, doesn’t it?
I am an unapologetic capitalist, not a socialist. There are a few reasons why the Big 3 are failing; an unfortunately rampant sense of “entitlement”, resting on their laurels instead of upholding that purely American tradition of staying ahead of the curve with new technologies, and the credit crunch created by the Democrats when they changed the Community Reinvestment Act which pushed banks to make home loans to people that could not afford them and created the housing bubble and toxic assets as homeowners went into foreclosure. There are many more reasons but those stand out as the biggies.
Some Americans became lazy and now it is starting to catch up with all of us, and those of us that are working our behinds off are now required to work harder to do what?….save the lazy and stupid? That might be why socialism keeps falling on it’s face all over the world, and why I think we should let the Big 3 save themselves or die trying. All those auto workers could then be employed making and installing solar panels on every single business’ rooftop, and in some very choice areas in the desert Southwest. How is that for some infrastructure development? Just one thought….
From The ObamaTimes:
WASHINGTON — Congressional Democrats on Sunday were weighing options for tight government control of the crippled American auto industry, including the possible creation of an oversight board made up of five cabinet secretaries and the head of the Environmental Protection Agency, and led by an independent chairman or “car czar.”
While the form of oversight was still being negotiated by Congressional Democrats and the White House late Sunday, the talks made clear the extent to which the auto companies would have to submit to substantial government supervision in order to receive a taxpayer-financed bailout.
The discussions of how strong a hand the government should take with the auto industry came as Congressional and White House negotiators sought to put the final touches on emergency bridge loans of about $15 billion to keep General Motors, Chrysler and Ford afloat. The final legislation is also expected to impose stringent taxpayer protections, including stock warrants that would give the government an equity stake in the three firms, new limits on executive pay and a ban on stock dividends while the loans are outstanding.
For his part, Senator Christopher J. Dodd, the chairman of the Senate banking committee that is drafting the legislation, called for the dismissal or resignation of Rick Wagoner, the chief executive of G.M., which is the most imperiled of the automakers.
“I think you’ve got to consider new leadership,” Mr. Dodd said Sunday in an interview on “Face the Nation” on CBS. “If you’re going to really restructure this, you’ve got to bring in a new team to do this, in my view.”
I have been thinking the very same thing when it comes to the Congress…
At the news conference in Chicago, Mr. Obama reiterated his position that it would be unacceptable for the government to allow the auto industry to collapse. But using somewhat tougher language than he has before, he said it “makes no sense for us to shovel more money into the problem” if the companies are unwilling to reorganize.
And then there is “W.hat O.bama R.eally M.eant….” Are we going to spend the next four years listening to Cabinet members talking about what The One Actually Meant? Why is he The One then? Did he not say “…everything comes from me” in reference to agenda and vision. Why is Rahmy cleaning up his messes?
Rahm Emanuel, who will be Mr. Obama’s White House chief of staff, said after the news conference that Mr. Obama did not mean by his use of the term “restructuring” to suggest a bankruptcy-like financial overhaul, but rather that they need to retool to manufacture more fuel-efficient automobiles and ensure future profitability.
Democrats were weighing various counterproposals calling for the creation of a full oversight board, made up of the secretaries of commerce, energy, labor, transportation and of the Treasury, as well as the administrator of the Environmental Protection Agency.
Oh yeah, let’s add more to the Federal Government, shall we?
Many lawmakers in both parties said they were troubled by the Bush administration’s handling of the $700 billion financial system rescue program, which Congress approved hastily in October. Several lawmakers said they did not want to be pressured again into spending billions of taxpayer dollars to rescue private companies.
“I think Congress is tired of being stampeded,” Senator Jeff Sessions, Republican of Alabama, said on “Face the Nation.” “We haven’t even seen a bill yet. So I think there’s still a lot of skepticism out there.”
You Think Congress Is Tired Of Being Stampeded? We are tired of the Congress listening to Paulson and panicking! How can anybody believe a word that passes Paulson’s lips now after he has changed his mind numerous times about what to do with $700B, and can anyone tell me the appreciable positive effect the $350B that Paulson supposedly has put into the “economy” since September has caused? I thought we were just informed that the “slow-down” is really a recession, and that is after the the first half of the Bailout $$ went somewhere. What happens when Paulson “spends” the second half?….Depression?