This isn't a bailout of the auto companies. The best thing for GM and Chrysler is to enter chapter 11 bankruptcy. This bailout will save the UAW from making serious concessions, keep the same bad management team in place and protect the stockholders and bond holders from losses. There is no long term hope for the big three unless they can dump the UAW, get relief on their debt and change their leadership. Let's hope the Senate Republicans can block this giveaway of our tax dollars.
House Passes Auto Bailout Vote, Despite GOP Roadblocks
Democratic lawmakers and the White House strike a deal on an emergency $14 billion loan program for the auto industry, but Senate Republicans are not happy with the plan.
Wednesday, December 10, 2008
WASHINGTON -- A $14-billion rescue package for the imperiled U.S. auto industry sped to approval in the U.S. House of Representatives on Wednesday night, but the emergency bailout was still in jeopardy from Republicans who were setting out roadblocks in the Senate.
Democrats and the Bush White House hoped for a Senate vote as early as Thursday and enactment by week's end. They argued that the loans authorized by the measure were needed to stave off disaster for the auto industry -- and a crushing further blow to the reeling U.S. economy.
The legislation, approved 237-170 by the House, would provide money within days to cash-starved General Motors Corp. and Chrysler LLC. Ford Motor Co., which has said it has enough to stay afloat, would also be eligible for federal aid.
Republicans were preparing a strong fight against the aid plan in the Senate, not only taking on the Democrats but standing in open revolt against their party's lame-duck president on the measure.
The Republicans want to force the companies into bankruptcy or mandate hefty concessions from autoworkers and creditors as a condition of any federal aid. They also oppose an environmental mandate that House Democrats insisted on including in the measure.
Earlier Wednesday, auto state Republicans who have pushed hard for a bailout, said the measure needed work. Sen. Kit Bond, R-Mo., said he wanted to see changes. And Sen. George V. Voinovich, R-Ohio, said the measure didn't have the necessary Republican votes to pass Congress. Full story here.