Status 2: The Big 3 Auto Bailout/Loan

We have finally reached a consensus between Congress and the White House that a bailout/loan will be reached for the big 3 auto dealers.  Initially when the proposal was sent to the White House there was some opposition towards the way it was structured.  Bush much prefer that changes be made first before any money is given.

At first blush, White House officials suggested privately that the draft might fall short of principles behind a broad agreement to give long-term financing only to viable companies.

But it was reported shortly thereafter that the White House announced, via press secretary Dana Perino,  that there is a positive hope that a proposal will be approved this week.  How that will work out with Sen. Shelby we can only wait and see.  Shelby has stated, as early as yesterday, that he would filibuster any bailout bill for the big three should it reach the senate this week, even though he denies he has an agenda.

Nevertheless, Nancy Pelosi, House Speaker, feels that the vigorous negotiations with the Bush administration will ensure at least a $15 billion dollar package.  Pelosi has also warned that every one will have to contribute by making concessions.

House Speaker Nancy Pelosi, D-Calif., said negotiations were continuing with the White House, and lawmakers were hoping to create an auto industry that could thrive on its own — an effort she said would require concessions from management, labor, creditors and others.

It also should be noted that part of the conditions of the loan/bailout is that the auto industries must except an overseers (Car Czar) to ensure that the restructuring is taking place as required.

Earlier Monday, the White House and a top Democratic lawmaker said they were likely to strike a deal quickly on the multibillion-dollar bailout, which places strict restrictions on the automakers while they’re receiving the loans and mandates that the government overseer keep close tabs on their efforts to restructure.

The proposal also would give the overseer — a kind of “car czar” — say-so over any major business decisions by the automakers while they’re taking advantage of federal aid. The companies would have to open their books to the government, including informing the overseer of any transaction of $25 million or more and any “material change” in their financial condition.

Under the plan, the carmakers could get emergency loans right away. Then the overseer would write guidelines, due on the first of the year, for restructuring the Big Three automakers.

Basically, the government will effectively be taking over the car industries.  The new owner of the car companies would be us via our President Obama.  Normally, if Bush was still the president I would balk at such a notion; however, the picture changes with President Obama being at the helm.  The loan in itself is only to keep the companies (exception to Ford who is not as bad off as GM or Chyresler) viable long enough for President Obama to take control of the situation.

When it comes to a Car Czar that is considered and could be risky business.  Unless some one who has both engineering skills and innovative ideas can be tapped to fill the position I’m finding it hard seeing how the Federal Government can take over the company with being able to understand the real needs the companies will need to advance into the future.  You never know, under President Obama he might suggest just a Czar that institute the car industries become more deversified (trains, rails, buses, cars, etc.).  This will be one to watch and see how it developes over the next 3 to 6 months.

Enough said.

Status: The Big Three Auto Bailout

There are reports surfacing that although Congress and the White House are trying to make a short term loan/bailout ($15-$17 million) for the big three auto industries there is opposition coming from the house of the senate (more on that later).

Seeking to end a weeks-long stalemate between the Bush administration and House Speaker Nancy Pelosi, senior Congressional aides said that the money would most likely come from $25 billion in federally subsidized loans intended for developing fuel-efficient cars.

There is also news regarding another snag in the progress.  Both the DNC and the GOP would like to appoint a czar to oversee the big 3 to ensure restructuring is done as per the agreement.  As could be expected the in fighting over who it should be, what they should do, blah, blah, blah has begun.

Sen. Carl Levin (D-Mich.), a leading ally of the Big Three on Capitol Hill, predicted there will be an agreement “in 24 hours,” but he would not predict whether it would get Senate approval.

“I think they’re very close to a deal, I think there will be a deal and that will happen in 24 hours,” Levin told host Chris Wallace. “Obviously, that’s a much more complicated question of whether the votes are there. What I’m confident of is that a bill will be introduced.”

However, on Fox News Sunday with Chris Wallace, Senator Richard Shelby has announced that he will filibuster any bailout for the auto industry that comes to the senate floor next week.

“This is a down payment on many billions to come,” Shelby warned. “This is not something that happened overnight. This is 30 years in the making. These companies basically have failed or are failing. They probably need, according to some people, about 60 percent of the management to go, and about 40 percent downsize of the workers.”

Shelby added: “We would like to save them, but they’ve got to save themselves, but I don’t believe they’re willing to save themselves because they could be restructured the right way and they’re not willing to do that.”

Shelby said he would like to see an “extended debate” on any bailout package that reaches the Senate floor, but did not know if there was enough support to sustain one.

I wonder if Shelby will try to top J. Strom Thurmonds all time filibuster record (over 24 hours) to make his point?  I digress, usually when someone protest too much there, some times, is a reason to check out the fuss.  Surprise, surprise Shelby has not been forth coming with his interest in the 3 big auto companies failing.

… to point out the hypocrisy of your position as it relates to Alabama’s (the state for which you have served as senator since 1987) recent history of providing subsidies to manufacturing.  During the segment on “Meet the Press,” you stated that:

We don’t need government — governmental subsidies for manufacturing in this country.  It’s the French model, it’s the wrong road.  We will pay for it.  The average American taxpayer is going to pay dearly for this, if I’m not wrong.

I trust it is safe to say that when you refer to “government subsidies,” you are referring to subsidies provided by both federal and state governments.  And if this is in fact true, then I am sure you were adamantly against the State of Alabama offering lucrative incentives (in essence, subsidies) to Mercedes Benz in the early 1990s to lure the German automobile manufacturer to the State.  As it turned out, Alabama offered a stunning $253 million incentive package to Mercedes.  Additionally, the state also offered to train the workers, clear and improve the site, upgrade utilities, and buy 2,500 Mercedes Benz vehicles.  All told, it is estimated that the incentive package totaled anywhere from $153,000 to $220,000 per created job. On top of all this, the state gave the foreign automaker a large parcel of land worth between $250 and $300 million, which was coincidentally how much the company expected to invest in building the plant.

It seems Shelby has a double standard.  If he was outraged over Alabama using tax payers money, he certainly kept it quite.  It now has become hard to understanding Shelby’s point.  Is it good to use tax payers money when it benefit your state?  Or, is it about not using tax payers money for Mercedes competitor?  His protest seems to be out of proportion with his own state’s actions.  Just what is the message Shelby is really sending?  Sorry Shelby but you need to be put out to pasture.  Some one who does not have duplicity needs to step up and make this argument, if it is a justifiable argument.

In our current state of collapse,  Shelby can only be perceived one of two ways,  part of the problem or part of the solution.  Right now Shelby appears to be part of the problem and it leaves the thoughts that he is practicing the same old tired politics that got us into this mess.

Such aid would save millions of jobs and millions of dollars in lost tax revenue.  Additionally, unlike the giveaways Alabama bestowed upon the foreign automaker in question, United States taxpayers would be reimbursed with interest (as they were when Chrysler received government aid in the early 1980s) for their investment in what is clearly a critically important industry for America’s present and future.

Enough said.

The Big Auto (3) Three

It was reported shortly ago that congress is going to rescue the big three.  They have indicated that a vote will take place next week.  A sum was not given, what is known is that they will at least give the Big (3) Three enough money to keep them in business until President Obama takes control of the white house.

At the same time tonight the current secretary (Paulson) has been in talks with President Obama’s people to free up more of the bailout.  I can only wonder how the timing of the Big Auto (3) Three bailout news came out while those talks are developing.  I will offer a video as some as I can access one covering this news.

Let’s hope this is not a sell out.  No more access to money for the financial institutions alone.  Check back on this page for video.

More to say on this subject.

UPDATE:  Here’s the video as promised regarding Congress agreeing to helping the Big Auto (3) Three:

UPDATE 2:  As I’m reading the Huffington Post about Bush claiming some form of victory about the auto bailout I must laugh.  Who the hell is Bush?  It was reported that Bush stated that one of the three would not survive since he only agreed on half the money they requested (can you hear him laughing?).

President George W. Bush warned that at least one of the Big Three carmakers might not survive the current economic crisis.

What a prick Bush is.  Does he really think he can pay the American people back for his own incompetence?  Is he so absolutely stupid he thinks  he can destroy us by doing everything in his power to undermine us with deregulating so many laws and playing cheapskate on our economy?  Let me get vocal.  Bit#h, you have less than 2 months to vacate the premises.  This is not a transition of power.  This is a get the eff out of the house wait period.  I know he has every right wing nut telling him we will remember you well.  Let me put it in terms of the 70+% that really want you gone, GET OUT QUICKLY.   Trust me, If we knew of a way to kick you out (short of impeachment — which is way to late) now we would.  Only know that you are hated and despised no matter how many of your 20+%t right wing nuts sing your praises.

Dear Bush you are a dismal failure and I will make sure, until the day I die which will be carried forward by my children and their children, that the fact that you are and will be noted as a failure becomes a part of your legacy.  Sincerly, an American tax payer.

Sen. Specter: Telecom immunity is ‘festering wound’

Its easy to see that Eric Holder does not really have a problem becoming the new AG.  There seems to be bigger fish to fry here and even a republican like Sen. Specter can see that.  For example, the Telecom immunity policy that was passed recently.  That is a very sore point with the American people and the government being given license to spy on us for no reason needed is something that needs to be addressed and overturned if possible.

As for the democrats having power in both congress and the senate?  Right now its okay.  We need that edge to get new ideas passed without unnecessary opposition.  Let’s see how this works out before I start yelling we need checks and balance.  We’ve had enough of that nonsense not getting anything done.  Personally, I believe we need the government to be working for us and not just their stupid ideologies.

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