Pelosi, Congress consider more money for U.S. automakers
House leader Nancy Pelosi may have given the beleaguered U.S. auto industry it's biggest and best hope yet after the leading Congressional Democrat told NPR that Congress is considering more loan money for the ailing industry. Pelosi and House leadership met on Monday about a second $25 billion bridge loan that would buy the Detroit Three time during a brutal downturn. Pelosi is also meeting with management from each domestic automaker plus UAW President Ron Gettelfinger today to discuss possible loan packages. Pelosi said the potential loans are about "saving an industry," which goes a long way towards showing just how dire the situation has become. Government help for the U.S. auto industry likely won't get resistance from President Elect Barak Obama, as the new Pres has stated publicly in the past that he wants to help get Detroit automakers back on their feet.
This second round of money would come in the form of a low interest loan similar to the $25 billion that has already been approved for more efficient car tech. Washington will likely demand that executive compensation be curtailed as part of any deal, if only to keep shell-shocked Americans from blowing a gasket over the kind of money that is being thrown about our nation's capital. The Detroit News is reporting that further details of these new potential loans may be available as soon as Friday, as Congressional leaders plan to put out a statement. That's the same day third quarter financial results are due to come from Ford and GM, and those numbers aren't likely to be good at all.
[Source: The Detroit News, Photo by Brendan Smialowski/Getty]
Reader Comments (Page 1 of 5)
Red 12:34PM (11/06/2008)
I had high hopes for Pelosi...
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TJ 12:35PM (11/06/2008)
Please tell me you are joking.
Red 12:51PM (11/06/2008)
I am.
TJ 12:53PM (11/06/2008)
Whew... scared me for a minute there....
Red 12:56PM (11/06/2008)
Lmao...she scares the beejeezus out of me. They're putting a band-aid on the problem and doing absolutely nothing to really solve it.
I've come to the conclusion that perhaps politicians shouldn't attempt to be businessmen and businesswomen. It's not exactly worked out for the country....*ahem*
NoBama 7:21PM (11/06/2008)
LOL... the Dems taking care of their own, at my expense - how surprising. Welcome to the great great society... remind me how successful the last one was/is? I hnad it to the Dems, they do take care of their voter base with my wallet very well... I'll never buy another welfare auto from these three stooges...
Todd 12:35PM (11/06/2008)
"...met on Monday about a second $25 billion bridge loan..."
$50,000,000,000.00 in two months?
25b every month, month after month? Indefinitely?
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BigMcLargeHuge 12:41PM (11/06/2008)
With no hope of paying back $.01 in the foreseable future.
TJ 12:43PM (11/06/2008)
http://www.treasurydirect.gov/NP/BPDLogin?application=np
The Luigiian 12:40PM (11/06/2008)
"Washington will likely demand that executive compensation be curtailed as part of any deal, if only to keep shell-shocked Americans from blowing a gasket over the kind of money that is being thrown about our nation's capital."
If they really didn't want to piss off Americans, they'd force the executives of these companies into retirement. Especially Wagoner.
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vintage 12:43PM (11/06/2008)
Or, they just DO NOT GET PAID until the company starts being profitable. That's what any of those rich dicks would do if they had a conscious anyway.
Gabagool 12:43PM (11/06/2008)
So you finally joined my side?
I have been preaching firing that bum for about 2 years now.
The Luigiian 12:44PM (11/06/2008)
Gabagool, if you count "wanting to fire Wagoner" as "being on your side", everybody on this entire website has been on your side for as long as I can remember.
tankd0g 1:43PM (11/06/2008)
Washington will demand nothing. they might thing to suggest it after the deal is signed but that's it.
Sean Flanagan 12:40PM (11/06/2008)
Yes we can!
/sarcasm
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LM 12:41PM (11/06/2008)
I want to know how much stock the Federal gov't is going to get in return for bailing these companies out. I think it would be much wiser to push through Universal Healthcare so that the automakers and other businesses don't have to provide healthcare.
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heiferdust 1:01PM (11/06/2008)
I, for one, can't figure out why the taxpayers should be required to prop up the gold plated retirement and health benefits of the UAW. The rest of us certainly don't get that.
Seems like bankruptcy is the best option to unwind the years of poor decisions on both management and union sides.
Vintage 12:49PM (11/06/2008)
Dammit! Why don't we get to vote for this!?! Why can't the people who are footing the bill VOTE if they WANT to give 3 stupid companies who make stupid decisions billions of dollars?!?!?
ARGH. This country is going to hell in a handbasket, on fire.
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TJ 12:48PM (11/06/2008)
In Colorado, we have TABOR. The Taxpayers Bill Of Rights.
We need a national TABOR.
chrisdavis 1:19PM (11/06/2008)
Given that our government is a representative democracy, you are free to vote for a different Representative, Senator, and/or President if you don't like how they vote on your behalf. If you feel that representative democracy is inefficient, consider the alternative of a true democracy. And the cost of elections for that matter.