Outgoing Presdient Bush sealed his legacy with Republicans and Conervatives today when he caved into his own self impoosed pressure to complete a “bailout” of the “Detroit 3″ against the wish of the American Public.
Public opinion polls show resounding opposition to a “Bailout” of the “Detroit 3″ and despite this opposition, Bush choose a path he believes will improve his “legacy” with the American people.
Once again, Bush has failed to consider the unintended consequences and ultimate costs his decisions will have for the American taxpayor.
BUSH HAS PLACED HIS CONCERN FOR HIS OWN LEGACY OVER THE BEST INTERESTS OF THE AMERICAN PEOPLE.
The Political Bull Shit is just unbelievable. The “Bailout” is referred to as a “loan”, yet no one believes the ‘Detroit 3″ can “repay” the loans if the meaningless conditions imposed on the “loans” are not met. The “Auto Bailout” blueprint has been borrowed driectly out of the “TARP” plan and fund – none of the conditions placed on the “TARP” program have been implemented. http://www.msnbc.msn.com/id/28311743?GT1=43001
Bush promised the “Detroit 3″ 17 Billion in Taxpayor money – to be provided from the “Troubled Asset Relief Program” or TARP – a fund never intended to provide such funding. http://www.msnbc.msn.com/id/28311743?GT1=43001 So instead of buying “troubled assets” or mortgages the “TARP” will not be used to pay UAW members 85% of their salaries not to work …. Brillant, just brillant!
Bush stated that “letting the Auto Companies collapse is not a responsible course of action”. What a ridiculous proposition. Letting failed companies collapse is exactly what the Government does every day – The US Government does not guarantee the success of failed businesses – nor should it support failed business at the expense of successful businesses as Bush now proposes.
Bush pretends to propose a whole new set of “conditions” for receiving the “loans”, “conditions” which are identical to the unkept promises made by Congress when they passed the “TARP” legislation. The “conditions” are nothing more than “political window dressing” to limit the public criticism of this failed President and his failed Congress.
Treasury Secretary Henry Paulson is to provide the funding from the “TARP”, this despite the fact that Paulson refuses to account for the spending that is being undertaken under the “TARP” program ……
Harvard Law Professor Elizabeth Warren, the Chairwoman of the Congressional Oversight Panel for the “TARP”, continues to express her frustration over Paulson’s failure to account for how he is spending the Billions of dollars of Taxpayor money under ‘TARP”. http://www.foxnews.com/politics/2008/12/18/bailout-watchdog-wheres-spending-plan/
AND THIS IS THE MAN WHO WILL PROVIDE AN ORDERLY “BAILOUT” TO THE “DETROIT 3″ – AS OPPOSED TO THE ORDERLY ADMINISTRATION OF THE BANKRUPTCY COURTS.
I DOUBT PAULSON WILL EVEN BE ABLE TO PROVIDE AN ACCOUNTING OF WHERE THE MONEY HAS BEEN SPENT.
The Bush “handout” pays “lip service” to the “Detroit 3″ completing a “restructuring program” – the same “restructuring programs” Congress demanded from the “Detroit 3″ when they returned to Congress on December 2 -
You might recall that the “Detroit 3″ returned “empty handed” to Congress in December - that is right, they retruned without any type of plans – just renewed requests for taxpayor money.
The penalty for not having completed a plan to justify the requested loan – nothing – Bush granted $17 Billion in loans without any type of “reorganization plan”. A “take the money first” and come back with a plan later, if you like, approach. No wonder the “Detroit 3″ can’t get a loan in the public market place – the Banks want to see the “restructuring plan” upfront.
This is just incredible. Do you know that the amount loaned to the “Detroit 3″ is equal to every family in the Country making a $5,000 personal loan to the “Detroit 3″. If the professional lenders wouldn’t ake the loan with an “upfront” restructuring plan” why did Bush make that commitment on our behalf.
I, like the the rest of the overwhelming majority of Americans, are opposed making such a loan.
WHY DOESN’T CONGRESS STEP IN AND STOP THIS?
THE UAW IS ALREADY STATING IT WILL MAKE NO FURTHER CONCESSIONS, GEE WHAT A SURPRISE.
The UAW has idled “Detroit 3″ plants with strikes twice in the last 14 months. The UAW lies to its membership when it failes to admit the “true” hourly “all in costs” of its labor contracts. Neither the UAW nor its membership believe that concessions are necessary. It is no wonder that the ‘Detroit 3″ is stuck with a failed business model.
Don’t you think that if a “voluntary” means of spanning these differences was possible, that path would have already been taken. Throwing $17 Billion down the drain while the Detroit 3/ UAW continue on as usual is a ridiculous path to follow.
So what happens in 3 months after $17 Billion of “good” taxpayor money has been trown down this rathole – and the “Detroit 3″ have produced no restructuring plan …… Does anyone really think the Detroit 3 will suddenly find the money to repay the loans – of course not. Everyone in Washington knows the money will be “lost”. No one is predicting that the economy is going to turn around in 90 days – in fact – the predictions correctly predict a continued worsening of the economy for the next 12 months – maybe longer if the Government continues to prusue the failed “Bailout” and “Loan” policies.
Do you think there will be a sudden demand for the product currently being produced by the “Detroit 3″. To imply that will happen is simply fiction. Gee, is the American public lining up to buy a “Volt” - GM’s electrical car that won’t even come to market for 2 years and then the owners of the Volt can look forward to recharging their vehicle every 30 miles. Is this is the vehicle that will save GM in the next 90 days?
So what happens in 90 days? Is GM or Chrysler going to be economically viable? NO they won’t! Will the American Taxpayor be robbed of additional funds to continue to pay UAW members 85% of their salaries not to work? (YES, THE JOB BANKS ARE STILL OPERATING AT FULL STEAM).
Bush’s bailout of the “Detroit 3″ is really nothing more than an adoption of the Plan proposed by House Democrats, the same Plan that was rejected by the American People and the Senate Republicans.
This “Bush Bailout” does nothing to “demand” or require any changes by the ‘Detroit 3″/UAW – changes necessary for the “Detroit 3″ to survive and prosper.
Listen closely to what the “Detroit 3/UAW are saying – they don’t really believe fundamental change is required – thus they are doomed to fail – it will jst be a matter time and of how many Taxpayor dollars are spent making “political paybacks” before the American public says enough is enough.
So the curtain comes down on the last term of Bush’s Presidency. As the curtain closed Bush choose a path he thought might improve his legacy, not the path that was best for America or the “Detroit 3″.
When it really mattered most for the American public, Bush placed his concern for how he might be remebered in the short term over what was “right” for America in the long run. A final serving serving act of a failed Presidency.
This “Auto Bailout” will not improve the “Bush legacy”. Unfortunately the “Auto Bailout”, like the “TARP” or “Bank Bailout” will prove to be a failure. By ignoring the American Public’s opposition to this bailout, Bush has succeeded in alienating his last group of supporters.
The “Bush Legacy” is certainly one of his own making.
The Current $17 Billion Dollars Fails to Provide Loan Guarantees for Ford Motor Company – The Proposal Provides An Immediate $9.4 Billion to General Motors (Over 3 times the present value of GM – The Government could have bought General Motors for 1/3 of the loan amount). The Plan calls for an immediate $4 Billion For Chrysler (an amount over 3 1/2 times the current value of Chrysler company – again the Government could have bought the Chrysler for 1/3 the loan amount)
Providing loan amounts in excess of 300% of a Company’s Market Value Would Never Happen In The Private Marketplace.
Filed under: Auto Industry, Auto Industry Bailout, Bailout, Chrysler LLC, Detroit 3, Detroit 3 Bailout, Ford Motor Company, General Motors Tagged: | Auto Bailout, Bush Chooses Personal Legacy Over Bailout Opposition, Detroit 3 Bailout