By Ken Thomas
Associated Press
UPDATED 11:50 a.m. WASHINGTON, D.C. -- The Bush administration sharply criticized Democrats in Congress on Friday for taking a recess without approving a multibillion-dollar lifeline for the Big Three U.S. automakers.
“It is appalling that Congress decided to leave town without addressing a problem that they themselves said needed to be addressed,” White House press secretary Dana Perino said.
A bailout-shy Congress punted a $25 billion auto industry rescue bill on Thursday. Democratic leaders announced they wouldn’t help the beleaguered automakers until the companies presented them with a plan showing how they will use federal assistance to stabilize and reprogram their faltering business.
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The preceding couple paragraphs from this morning's news indicates why we need change in Washington. I know some people are skeptical of the concept of "change" and what it actually means, but the statement from White House Flak Dana Perino that it's "appalling" that Congress refused to act is blatant posturing on behalf of an administration that is just as clueless as ever, and a sharp example of why Americans overwhelmingly supported Barack Obama's bid for president.
I understand that the administration wants a bailout for the automakers, so they can continue to make cars that burn lots and lots of gasoline, which makes lots and lots of money for the oil companies that are no doubt part of the only barely blind holdings for Bush, Cheney & Co. And everybody has finally been able to peek through to the man behind the curtain (and the two men controlling him) and find out what he's really been about for the past 7 4/5 years.
But what's "appalling" is that Perino (i.e., George W. Bush) wants to blame "Congress" (i.e., the Democrats, since they control Congress) for, gasp, wanting the automakers to actually have a plan on how they're going to use that $25 billion. The automakers have been dying for years; what's another six weeks to wait? They showed up in their private jets (they didn't even jetpool!) to ask for all this money, and had no idea what they were going to do with it. By one estimate I heard yesterday, GM (I believe) is losing 5 billion dollars a month. So what would that one-third of $25 Billion dollars have given them? Six weeks of break-even business. Big fucking deal. Because then what?
I don't know if the banks needed the money free and clear more than the automakers; it certainly seems so. It seems the point was for the banks get the money so they can lend it, to free up money to get the credit markets moving again. Perhaps that was why "Congress" elected so quickly to give the banks the money with no apparent strings attached. The bank crisis would have had much greater a ripple effect on the global economy than three buggy manufacturers going belly up.
I think the Big Three ought to file for Chapter 11 bankruptcy reorganization. That would nullify the bloated union contracts, and allow them to cut the dead wood from each of the three companies. They could then merge into 2 companies: one that makes a few trucks/SUV's, and one that makes smaller sedans and coupes. They could then use the bailout money to retool the remaining factories to produce the kinds of vehicles that are a) required for the US to be energy independent, b) better for the environment, and c) actually ones that Americans can/will afford and buy. They would also have to show a, gasp, plan that indicates how much they're going to invest on R&D for more efficient vehicles in the future.
But the point is this: it's just more of the same from an administration that has nothing but bitterness, failure, fear, divisiveness and pessimism left to offer. You know, kind of like the last 7 3/4 years.
And all I can say is, 12:00 EST on January 20, 2009 can't come soon enough. I'm not saying Barack Obama will solve this mess, but at least we can be fairly certain he won't have his clueless lackies spouting such transparent partisan, divisive garbage.
Friday, November 21, 2008
How typical
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3 comments:
I agree. I have heard some interesting commentary on this in the past few days that I agree with wholeheartedly. One was a comparison of the big three to Toyota as far as hourly wages including benefits. Another was a comparison of the number of dealerships. What a difference. It seems to me that bankruptcy reorganization is the only smart option here because it's the only one that will open the union contracts up for renegotiation. Unions in and of themselves are a whole topic we could spend hours on. Just handing these companies $25B is not the answer. I fail to see how it will make any huge difference, especially to hand it over without demanding accountability. On the other hand, the number of other industries dependent on auto manufacturing and the jobs at stake is staggering. What a complex matter. I also do not like the idea of reassigning the grants that are supposed to be for energy efficiency development to a auto industry bailout. We are not making near enough progress in energy (oil) independence and alternative fuels. How I would have loved for my new van to be a hybrid but the only hybrid minivan is made by Toyota and not available in the U.S.
Do banks need the money free and clear more than the big 3? After what happened yesterday with Citigroup, I would think most definitely.
I hope 1/20/09 brings the change we need, but boy is it going to be an uphill battle. One man is not going to be able to do it alone. Maybe we all need to do a better job at holding those we elected at the local level more accountable as well.
I don't see congress holding to this stance once the big three return in December with a plan. They've been told if they have a plan, they'll get the assistance. Seriously, this is bogus!
Bankruptcy would allow the American Auto industry the leeway they would need to reorganize, dropping some very heavy burdens along the way. Once they can place an emphasis on designing and building cars that meet today's needs rather than being a big cesspool of entitlement for the unions, they will certainly be able to breathe new life into the industry. They would be far stronger if they didn't have to support so much.
A bailout does not address the bigger problems. A bailout reinforces these problems and does it with the taxpayers' money. The hearings this past week were a very big joke. Those in congress supporting a bailout are blinded by a sincere desire to help out those who rely on the automobile industry as a status quo organization.
My husband just sent me this. I thought you might find it interesting since you blogged about the bailouts.
http://gohmert.house.gov/Article.aspx?NewsID=1355
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