David Kirkpatrick

December 10, 2008

Auto bailout looming

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 10:24 am

Looks like a legislative deal is getting close. I know there’s good reasons to help automakers out — namely all the makers are tied via suppliers, etc., and if say GM eats it some suppliers that Toyota, Honda, et.al. depend on will go under as well thusly undermining otherwise healthy manufacturers.

Doesn’t make me feel any better about this entire process — starting with the financial sector — though.

From the link:

Congress and White House negotiators reached an agreement in principle late Tuesday for $15 billion in loans to keep General Motors (GM) and Chrysler afloat into the first quarter.

“We are making progress and are optimistic that we will have a reasonable compromise that will protect taxpayers and ensure the long-term viability of the American auto companies,” said Brendan Daly, spokesman for House Speaker Nancy Pelosi.

Update — Maybe not so fast there on this bailout.

From the link:

Congressional Republicans, left out of negotiations on the package, blasted it. Their opposition reflected the tricky task of enacting yet another federal rescue in a bailout-weary Congress, with Bush’s influence on the wane.

“People realize that this bill is an incredibly weak bill, (and) is the product of an administration that wants to kick the can down the road and let somebody else deal with it,” said Sen. Bob Corker, R-Tenn. “I think it has minimal—very little support in our caucus.”

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