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Posts Tagged “Automaker Bailout”

Punting the ball

In a sign that the Iraqi journalist REALLY did hit President George W. Bush in the head the other day, the Bush Administration announced this morning a loan package for United States automakers.

The Bush administration came to the rescue of the troubled U.S. auto industry Friday, offering $17.4 billion in loans in exchange for concessions from carmakers and their workers.

“Allowing the auto companies to collapse is not a responsible course of action,” President Bush said. He said that a bankruptcy was unlikely to work for the auto industry at this time and would deal “an unacceptably painful blow to hardworking Americans” across the economy.

The firms must use these funds to become financially viable, or lose the taxpayer money. The official said if the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.

President George W. Bush spoke early Friday about his administration’s plan to avoid collapse of the U.S. auto industry.

Bush made a statement at 9 a.m. EST at the White House.

This bridge loan package for the automakers is the classic PUNT to the incoming Obama Administration. Bush was simply afraid of the forced bankruptcy of a major American industry on his watch.

Political courage from a Republican President that said: “I’ve abandoned free-market principles to save the free-market system….”

Flap will be glad to see Bush return to Texas.

What a disaster.

And, now, it is announced that Secretary Paulson will be going back to Congress to ask to replace the TARP money that has been transferred to the automakers.

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Dy By Day 121208

Day By Day by Chris Muir

Well, Chris, the automaker bailout bill failed in the U.S. Senate late last night (52-35, with 60 votes required for cloture) but this morning President Bush is considering using TARP funds anyway. As you remember the TARP funds are the previously approved $700 million for the financial services bailout.

Obviously, the stock market does not like the bailout failure with an overnight sell off in overseas markets and our Dow just opened 200 points down.

Flap bets Bush will bail the Big 3 auotmakers out and back to business as usual.


The Day By Day Archive

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