Friday, December 12, 2008

White House considering use of TARP funds for Auto bailout

From the beginning, the White House was opposed to using any monies from the TARP fund for the auto industry but now, it seems they have changed course. The Bush administration wanted Congress to use the 25 billion that was approved for "re-tooling" the Big Three so that they would build more efficient vehicles. Unfortunately, Congress was dead set against that idea. So the next move was for Congress to pass new legislation that would give the automakers up to 34 billion in loans to avert bankruptcy. As we have seen, this number was reduced to 14 billion to see them through until the Obama administration could get in place. Now, in a shocking and stupefying move, a minority of Senate members have killed the 14 billion dollar bill.

These few Senators have decided they would rather micromanage the Detroit Three and tell them how to run their business and also dictate what union members should be paid. Instead of doing the right thing, these Senators have shirked their responsibility and are willing to see our economy sink to greater depths.

Make no mistake, the US auto companies will crash and burn without assistance and it could happen in a matter of weeks, which precludes Obama's team being of any help or consequence. If GM and Chrysler fail, then think of the jobs that will be lost, the companies that will fold and the impact it will have on our society and economy. I am reading every day of companies that announce massive layoffs like Bank of America, who announced today that 35,000 will lose thier jobs. Does Congress really want to see 500,000 more jobs lost from the auto industry?

Now, the only option left is the White House, who could carve out a small percentage of the monies from TARP and give it to the Big Three. TARP is the 700 billion dollar Troubled Asset Recovery Program which was really a bailout and FREE money given to evil, crooked banking institutions. Dana Perino correctly stated this morning, "A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."

I incorrectly thought that our Congressional leaders would approve a bailout bill and now I think that the White House will provide funds for the auto industry. I just hope I am not incorrect once again!

Tell me what you think. Will the White House and Bush Administration save the day?

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