Bush bails out automakers, and the wingnuts do their thing
By David Neiwert Friday Dec 19, 2008 10:01am
So Preznit Bush finally did the right thing and announced a $17.4 billion bailout for U.S. automakers in the hope that doing so will keep Republicans from being permanently branded the Party of Hoover:
The White House announced a $17.4 billion rescue package for the troubled Detroit auto makers that allows them to avoid bankruptcy and leaves many of the big decisions for the incoming Obama administration.
Speaking from the White House, President George W. Bush said the administration decided against forcing a bankruptcy to compel cost-cutting, in order to avoid the risk that consumers would desert one or more of the companies and touch off an industry collapse, deepening the current economic downturn.
"In the midst of a financial crisis...allowing the U.S. auto industry to collapse is not a responsible course of action," Mr. Bush said.
"Under ordinary economic circumstances, I would say 'this is the price that failed companies must pay' and I would not favor intervening to prevent the auto makers from going out of business," the president said. "But these are not ordinary circumstances."
Of course, the wingnut faction of his party is seriously pissed. Michelle Malkin wants someone to file a lawsuit to prevent it from proceeding, while the Heritage Foundation folks are just gnashing their teeth.
Because, of course, their preference is to see millions of Americans thrown out of work.
It used to be said that a recession was the Republican method for shortening the lift lines at the ski hill. A Depression must be their method for making the ski hill their own private playgrounds.
Fortunately, Bush -- who's focused these days on his legacy -- doesn't seem to feel he needs to listen to them anymore.
Login or Register to post comments.
I still think it's an attempt at legacy building; the Democratic controlled Congress did nothing (because repugs obstructed,) but the true blue boosh came through.
I think the best we can hope for is that there is enough bickering in Washington so radical or reactionary policies don't get passed. Congress (both Dem and Rep controlled) has shown that they can't really get anything substantial done.
I had to laugh today when I read that George Bush is coming to the rescue of the liberals who want the auto companies saved. It's so fucked up...
http://www.portfolio.com/news-markets/nationa...
I also responded to your question about the mortgage backed cdo's that had no mortgage backing them.
Doing the right thing at the last minute and only when forced to.
If you can't do it right, lie about it: the new rightwing mantra.
see Belling the Wingers (w lines from Perino and Atrios) http://cabdrollery.blogspot.com/
you can't get too mad at the Heritage Foundation. There "dear leader"has passed away so they are moving through the stages of grief and taking it out on someone.
can't say "peace" about Paul Weyrich. He was the force behind so much of the divisive politics and media clowns like El Drugbo. If there is a hell, perhaps he will be forced to spend eternity with Tony Snow, Lee Atwater, Robert Novak discussing their crimes against humanity.
Wingnuts call this guy a real patriot. Real patriots would want everyone to be able to vote.
http://www.youtube.com/watch?v=8GBAsFwPglw
Thom Hartmann plays that clip frequently. It goes to the heart of the con strategy: Disenfranchise as many voters as possible who are likely to vote against repukes, imprison as many people as possible on drug offenses to disqualify as many ex-felons as possible, run negative ads to minimize turnout, and play games with electronic voting, caging, and scare tactics to turn as many people as possible against our political system.
I bet a whole lot of families are taking a deep breath today. Their holidays are going to be a whole lot merrier knowing they will not be out of a job.
the heritage foundation is completely without credit, honesty, expertise, and integrity.
the heritage foundation--funded and controlled by members of the rightwing ruling class--has been a force of destruction for way too long. they are the champions of neoliberalism (SOE privatization, union busting, deregulation), but when it comes to THEIR money/wealth/power, like all good puppets, they are complete hypocrites.
case in point: these champions of the (not so)"free"market" advocated that the us taxpayers pick up the pieces for the failing wall street firms that got us into this mess. the heritage foundation was a leading "think"tank that advocated the policies that have kneecapped the american economy, and then they helped blackmail the country into saving their pelts.
I dug this post. Well said.
"Pelts". Heheh. Good word, used in this context.
thank you
I'm glad King George did this, even though he probably was motivated by saving his already-tarnished legacy from further damage.
Kudos to Bush for finally doing the right thing.
Silly me. All this time I was waiting for Bush to mess around 'till the last absolute second and go for the 'orderly bankruptcy' which would have pushed plenty of people to the point of rioting....
then he could have declared Martial Law and suspended the Inauguration of the new Administration, thus ensuring his bunch to remain where they are. After all, it IS good to be king..
As far as his worrying about his 'legacy'....he could just make it up as he has been doing....but it is good to see he finally did something nice for those other than his buddies.
For real, I am wondering what made him decide what he did.
Weird day. I find myself on the same page with Boosh. Too bad I have a long list of grievances with him that he still needs to address, but one out of kingjillion is a start, I guess.
This is not a bailout. We are assuming the right wing verbage. If the government was taking over the big three's obligations, like for example, absorbing the healthcare costs of its retirees, that would be a bailout. (Although back when they did this for the airlines, it wasn't called a bailout for some reason.)
When the government agreed to start buying worthless securities for real money from the financial sector, that was a bailout. I would even say that buying stock in insolvent banks is a bailout.
This is a low interest loan, not a bailout.
Its like a student loan, or an FHA mortgage.
I think I would have preferred more concrete, long-term solutions like government assumption of retiree healthcare costs and/or pensions (at 90 cents on the dollar with a cap or something.) Merge that with a contract to make electric vehicles for federal fleets - hell, make it "cost plus" with oversight, I don't care.
And to anyone crying about, "Why should we assume the obligations of the car industry?" and, "Why should auto employees get guaranteed healthcare/pensions?" Two points: 1) the workers made wage concessions to obtain those retiree packages (and don't even start with the foreign-owned US plant contracts, those are totally tied to existing wages,) and 2) just look at how much money the industry has pumped and continues to pump into the economy - a rising tide lifts all boats.
Of course, I'd like to see limits on executive compensation too.
Maybe Obama can work something like this in March.
Now W has both the right and left who can't stand him
Recently, that's what some have now said about our President elect in general terms. :-/
Seems to me people are missing the important point and the Dems fell for the set up. The point being Bush will supply a 17 billion dollar rescue package as long as the Repus can get permission through Congress ( Pelosi and Reid again ) to get at the remaining 350 billion of the initial economic Bank Bailout money. Suckered again, and they are not finished yet.
Where did you hear a link between the two?
Can you imagine the NASCA crowd if Chrysler and Chevy went out of business?
The Republicans would lose their base
Which is of course why he did it.
The article at the Heritage foundation's site has one redeeming feature: a link to some great analysis by Mark Zandi (of Moody's.)
http://banking.senate.gov/public/_files/Zandi...
Among other interesting things, Zandi points out that in 2006 labor costs in the auto industry dropped 8%. He also said that in 2007 the UAW agreed to "considerable" wage cuts that will continue the downward trend of labor costs (not seen in any other industry except the collapsing wireless technologies industry.)
http://crooksandliars.com/bluegal/open-thread...
"Bye Bye Miss American Pie"
Sun, 12/14/2008 - 01:08 — Truth_Critic Just a hunch...
...ask not what your country can't bail your ass out of.
Taking away the corporate jet for $17.4 billion that seems a little harsh!
UAW is a communist movement decades in the making!!!!
Thanks again.
I'm sorry, Mikey, this is the grown-ups' thread. Maybe you could participate after you do your homework.
(suggested reading, Zandi testimony, to wit: UAW wage cuts for the last four years continuing into the next several)
According to Zandi $34 billion still will not stop the collapse that is comming to the big 3. I don't care what you say "old billy" unions are a cop out. Try living on an honest living and free society.
Your delusional, and stupid too!
Honestly, like the free market corporate fascist's who have raped 95% of the country over the last 30 years? Really, where do wingnut talking point spewing, fact impoversihed idiots like you come from?
Guys like you give stupid a bad name.
the whitehouse claims that NO bailout would cause $13 billion in unemployment claims. pay me now or pay me later.
While I'm very much in favour of this measure to stabilize the auto industry George Bush is also in favour of it. This just seems wrong. I'll have to check my math.
Did I miss something? What do we call this $700 BILLION bailout of the financial industry?
Maybe I don't get it, but I'm not seeing this as such a big deal, after we just finished the process for propping up the financial sector, due to their BLATANT CORRUPTION and deregulation, and we'll be lucky to see a f*cking dime of that money return.
At least this is termed as "a loan". Is that what the financial industry is being call?...."a loan"? I haven't heard that.
F*CK the neocon/fascist/repug party and their brownshirts...all of them.
They will RECALL THE LOAN IF THE AUTO INDUSTRY DOES NOT COME UP WITH A PLAN TO THEIR LIKING.
Why don't we have the same clause in the TARP LOANS???????
Barely any oversight. That's what you get with pre-election legislation. What do you expect, multi-tasking? Responsibility?
for the other shoe to drop.
There's gotta be a hitch somewhere.
Bush is playing political politics and it might work yet again.
For the Auto Industry to get the money Bush wants the shares to go to the Govenment not the taxpayers. Next all the 700 billion is gone to cronies so Bush wants Congress to approve another 350 billion as Hank will come to ask for the extra money. So it stands if Congress want to bailout the Auto Industry they have to given Paulson an extra 350 billion with not questions asked. That would bring the total of money Hank would have gotten to 1 trillion dollars. It's called BLACKMAIL FOLKS. Now as Americans continue to be clueless the stealing continiues. Obama/Biden knew the 700 billion was gone because the GOP wouldn't allow any accountablity. The scam is on the US taxpayers who will foot the bill. Now Madoff's investors will get their money back with the extra 350 billion and the rest will be shared amoung White House friends. What will be interesting is how the GOP Law Makers will vote. As most of their voters didn't want the first bailout now they will have to vote with the President and explain it to their voters later or hope by the time the re election comes they have forgotten. The Illinois Govenor is doing the same thing the White House and GOP are doing so that will be his defense in his old school pay to play game. After the audit in 2009 the total spent by the Bush Administration should reach 15 trillion dollars and taxpayers will have to pay that back, don't forget the Law Makers just gave themselves a 20,000 dollar raise in this recession. Talk about making fools of the public as they laugh their butts off it's so easy almost to easy.
Bush and Company have gotten everything they wanted and on schedule. 9/11, war in two countries, a shredded constitution, a worn out military, public unfettered surveilance, torture, almost complete control of the media, rigged justice, and now the gutting of the Treasury and busting of unions. You have to hand it to them. Its a known fact that after you destroy the stability of a country and the people are finally on their knees begging especially a population that is too afraid or confused to protest, you then have, with help from the military or whatever ( Blackwater), almost complete control. Just ask the Nazis. Stand back and look at the big picture and what they have done. Its too fucking late. Obama will not be able to put Humpty Dumpty back together again.
I don't really see letting them fail becoming a problem. Yes, jobs will be lost. That's entirely predictable. But this entire debacle has been predictable. It was only a few years ago when Ford and GM hit junk bond status.
Hey, nobody knows 'failed companies' better than Georgie...on a more positive note, one of the architects of the Confederate Caucus bailout block was popped today for a $25,000 fine by the FEC.
Jim DeMint (sounds French)...seems he collected and used $68,000 in illegal campaign funds.
For ONCE I can say I agree with Bush, and he appears to have done the right thing; his reasoning is sound. (Hell has frozen over??) Legacy building or not, who cares? I think he did the right thing. Millions might be spared economic collapse/ruin. Once people are "out on the street," it's really hard to get back inside.
Bush does something right? You've got to be kidding ...
Another $17 billion (on top of the $25 billion the big 3 got a week before TARP) is barely going to keep them breathing till the inauguration. Then Bush can do what he does best: pass the buck.
Restructuring? Nope.
Manufacture alternative energy products? Nope.
Manufacture public transportation? Nope.
Hand over taxpayer billions? Sure ...
It's happened before where we think Bush has gotten something right and it turns out he was BSing all along. This will be the same way one way or another. Either the $17 billion will go "missing", or it'll all go to CEOs while they declare bankruptcy anyway, or something.
A stopped calendar is right once a year. Bush is never right, ever, about anything.
I love C&L but I don't think the fine bloggers representing this site have grasped the full gravity of our situation.
If you blow by this post you may find yourself in a few years wondering where your next meal is coming from, I'm dead serious. I will show you just how our future is being pissed away by both parties in DC, why neither party matters, why we cannot sit back and hope Obama (who I voted for) gets it right. The information below comes from a man named Michael Maloney, he is an adviser to Robert Kiyosaki, you should learn about him if you don’t know he is.
So there you have it, here is your bread crumb trail of people to learn about.
Peter Schiff
Jim Rogers
Nouriel Roubini
Marc Faber
Robert Kiyosaki
Warren Buffet
This article can be read in full here
http://goldsilver.com/news_december_18_2008.php
p.s. Go back and look at the charts and notice the curve doesn't turn up hard until after 1970, in Aug of 1971 Nixon took us off the gold standard and that is when things started to get crazy.
Thank you
this guy has been wrong about everything important- why is he still on?
With less than a month to go, Bush performs his first and only official act that was actually good for the country. Never thought I'd see the day.
But....then again....it was also very good for the Carlyle Group, because the same suppliers that would go belly up if the auto companies fail also supply parts and equipment for the defense industries owned by the Carlyle Group. That could slow up production at very profitable war industry businesses, which would not be good for the Bush Crime Family profits. No...that would never do. Can't have that.
You can't patch a dam with water. You can't prevent a burst credit bubble from deflating, with more credit.
Login or Register to post comments.