Reid, Pelosi, Dodd, Frank Renew Call On Bush To Use TARP To Aid Auto Industry

Since Rep. Richard Shelby and his gang of blue collar haters have blocked the bridge loan, the Democratic Party is asking Bush to let go of the funds from TARP to help save the auto industry.

Dear Mr. President:

This week the U.S. domestic auto industry submitted their comprehensive plans for restructuring their companies and moving promptly to produce more fuel-efficient, advanced technology vehicles which are essential for their economic future and for the environmental needs of our world.  Hearings are underway in the House and Senate Committees into those plans, but it is already clear that action should be taken by the federal government to facilitate the implementation of these restructuring efforts and prevent the severe impacts to our economy that would result from the bankruptcy of one or more of these companies.

We have previously urged that $25 billion of the funds provided in the Emergency Economic Stabilization Act (EESA) can and should be used for emergency bridge loans for the domestic auto industry.  The response from the Treasury to date has been that these funds should only be used to protect the U.S. financial sector.  What is becoming clear, however, is that the failure of the Big 3 would indeed have a major direct and negative impact on the financial sector, not just on the economy as a whole.   

We again urge you to use funds available to you through the EESA to provide emergency bridge loans to the auto industry...read on

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