Monday, December 08, 2008

Auto Bailout is Pending

More than anything else, what doomed John McCain's run for the presidency? No, not David Letterman. It was the bailout legislation which bailed out banks with no real accountability for the companies or the regulators. So, what is Congress's first priority after the election? A nearly identical bailout for the auto makers. Despite earlier claims that no bailout would be offered without a clear plan from all automakers.

The amounts under discussion are less than half the $34 billion that the automakers asked Congress for last week. Some economists believe they may need $75 billion to $125 billion to survive in the longer term.

Nevertheless, lawmakers fear a recession will deepen if any of the three giants -- GM, Ford and Chrysler -- collapses soon. But some from Bush's Republican party don't want another rescue plan after a $700 billion Wall Street rescue package that triggered voter backlash in the November 4 congressional elections.

Critics also say market forces, not state intervention, ought to determine the fate of the auto industry.
There is nothing like throwing gasoline on a fire to end a crisis and restore calm.


Anonymous said...
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BowHunter said...

Here is Chris Dodd's view

Throwing stones from our glass house.