Saturday, December 13, 2008

Bush set to intervene over car industry bailout.

It would appear that even President Bush can't go along with the recent reckless Republican decision to refuse to bailout the US auto industry.

The Bush administration warned today that the US economy could not withstand the collapse of the US auto industry and said it might be willing to provide emergency funding to bail out the automakers, a day after Congress failed to pass a bill doing the same.

Democratic leaders and the main US auto workers union appealed to the administration - now in its last weeks - for emergency funds after a Senate deal to save Detroit's Big Three automakers collapsed in acrimony late yesterday.

Analysts said that without quick help, two of the country's major car manufacturers - General Motors and Chrysler - could face bankruptcy.

The administration said it was considering tapping a $700 billion financial industry bailout fund to prevent an industry-wide collapse.

"Given the current weakened state of the US economy, we will consider other options, if necessary including use of the TARP program, to prevent a collapse of troubled automakers," White House spokeswoman Dana Perino told reporters aboard Air Force One as Bush headed to Texas.

The United Auto Workers blamed the failure of the $14 billion compromise bailout on Senate Republicans who want more wage concessions from the union. The UAW said it was now up to Treasury Secretary Henry Paulson to find a way to bail out GM and Chrysler, along with Ford.

"The ball is squarely in his court," the UAW said in a statement. "He has the power to prevent the imminent collapse of the companies and the disastrous consequences that will follow for millions of retirees and workers and for the economy of our entire nation."

Given Perino's comments, it seems clear that Bush will make the needed payment as even he is not as irresponsible as the party he leads who actually voted against the loan in the full knowledge that this could lead to 3 million people facing unemployment and would possibly have tipped the US economy over the ledge into full scale depression.

It's hard to think of a more irresponsible decision than the one taken by the Republicans. And it's one that they had long threatened to make.
Hardline opponents of an auto industry bailout branded the industry a "dinosaur" whose "day of reckoning" is near.
Most of us felt that the fact that the collapse of the auto industry might trigger a depression would bring the Republican ideologues into line, but we underestimated just how partisan and insane certain Republicans are.

Indeed, it's such an awful decision that even Bush can't go along with it.

When one looks at this decision one can only sigh with relief that these morons have been removed from power and ponder that January 2oth simply can't come soon enough.


A memo obtained by The Los Angeles Times shines a further light on this disgraceful decision by Republicans:

From: Sent: Wednesday, December 10, 2008 9:12 AM
To: Subject: Action Alert -- Auto Bailout

Today at noon, Senators Ensign, Shelby, Coburn and DeMint will hold a press conference in the Senate Radio/TV Gallery. They would appreciate our support through messaging and attending the press conference, if possible. The message they want us to deliver is:

1. This is the democrats first opportunity to payoff organized labor after the election. This is a precursor to card check and other items. Republicans should stand firm and take their first shot against organized labor, instead of taking their first blow from it.

So, rather than attempt to introduce fiscal responsibility to the auto industry as they claimed, this was actually simply another Republican attempt at union bashing. Even if it risked bringing down the entire economy, they just couldn't stop themselves.


Think Progress provides the video above which perfectly illustrates the union bashing which the Republicans are now indulging in.
As Rachel Maddow said last night, “Senate republicans are on an ideologically driven union-busting adventure,” “the American economy as a whole be darned.”
And the Republican party are, as the video clearly shows, not even willing to own the catastrophe their actions might unleash but, instead, are attempting to place the blame on the UAW.

What irresponsible scumbags.


Rachel Maddow on the new Republican principle that business should be run from Washington with the aim of cutting American workers wages.

Tell me why they lost again?

Click title for full article.


daveawayfromhome said...

Unions represent a threat to the aristocracy that is the true constituency of the Reublican party. As long as the "leaders" of the GOP (and their wealthy puppetmasters) have all the power and money, it doesnt matter if there's less of it, especially since no matter how large their losses may be, it wont really change much for them (on a relative level), and may actually make it cheaper to live the life they feel they deserve (imagine the price of a houseful of servants circa 1900, compared to now).

Kel said...

Dave, It's the fact that they would risk the entire economy collapsing simply to have a pop at the unions which appalls me.

They not only fear the blue collar worker, they appear to despise him.