Aw Snap! Congressional Democrats undercut compromise bailout bill
Wow, what an amazing piece of political theater that just went down. As we reported, four senators from auto producing state (two Democrats and two Republicans) led by Michigan Senator Carl Levin have reached an agreement on a compromise bailout bill for automakers. They were set to announce details of the compromise bill at 2:30PM, but before they could, a team of Congressional Democrats led by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid walked into the room in which the press conference was to be held and announced that they didn't support the compromise bill and that CEOs of the Big 3 would have to come back after the Thanksgiving holiday and present a plan on how any loans that might be given would be used.Back to that compromise bill. The big stalemate, other than whether U.S. automakers should get a bailout at all, is where the money would come from. Democrats want to take $25 billion from the $700 billion bailout fund for financial institutions while Republicans and the White House want to re-appropriate $25 billion in loans that have already been approved for investments in green technology. Levin revealed the compromise to be a version of the Republican's plan, with concessions made to Democrats in that certain environmental restrictions would remain in tact and that loan repayments would go directly back to replenish the $25 billion fund for green investments.
What do we take away from all this? The Big 3 will get no assurance of federal aid before Thanksgiving, and there's still no guarantee they'll get help after the break. The ball is again back in the court of the Big 3 CEOs, who need to show up in December with detailed plans of how each would use any federal aid. The Democrats are calling for "accountability" and "viability" in their proposals, which are due to Congress by December 2.
Reader Comments (Page 1 of 5)
Max 3:23PM (11/20/2008)
Hopefully they will be smart and not show up in private jets for their second visit.
I don't think I support the plan right now. Giving them more money doesn't solve the underlying problems they face. ANY plan to keep the big 3 afloat needs to address their cost issues....and I think that is something that can only happen in bankruptcy court.
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TJ 3:26PM (11/20/2008)
I would love to see them road-trip it in a 1983 Dodge Caravan.... just for added emphasis. Point made.
ken_aisin 3:38PM (11/20/2008)
I would actually love to see them road-trip it in a Toyota Corolla.... just for added emphasis. Point made.
The Luigiian 5:40PM (11/20/2008)
So Rick Wagoner, Alan Mulally and Bob Nardelli are all driving to Washington for their bailouts. Nancy Pelosi is outside waiting for them.
Wagoner drives up to the steps of Congress in a 1971 Chevy Vega. As he steps out, the carburetor stars smoking, the wheels fall off, the engine blows a gasket, and the doors rust off their hinges.
"Have you learned your lesson?" Pelosi asks him.
"Gee golly, Ms. Pelosi! Am I glad to see you! I've learned my lesson this time! Look, I drove a Vega all the way up there. The engine kept on breaking, and I felt like the body was rusting all around me. It was the worst experience of my life. I want to make sure that nobody ever has to drive anything like this ever again.
Pelosi smiles. "Okay, Wagoner, I'll get you your bailout. Just wait here till the rest get here."
So Wagoner graciously thanks her and they get a tow truck to tow the Vega. Then Mulally drives up. He's in a 1974 Mustang II. Four-cylinder engine. A guy comes up from behind the car and kicks its fuel tank, and the whole things bursts into flames. He walks up to Pelosi.
"Have you learned your lesson, Mr. Mulally?" Pelosi asks.
"Yes, of course. This car was bad. I can't believe the company I run ever made anything like it. It was cramped, wall-to-wall vinyl, and you name it, it went wrong. I mean, I thought Mustangs were supposed to be sports cars, but this thing could barely make it up Capitol Hill. I promise you I'll work twice as hard as ever to make sure we never make another bad car like this one ever again."
"All right, Mr. Mulally, Ford can have its money."
Then Bob Nardelli comes up, and the others gasp in horror.
"All right, Mr. Nardelli, have you learned your lesson?"
"I sure have, ma'am. As I drove up here, my car's transmission's bands snapped, the interior felt like it came off a Yugo, I could barely see out the windows, the engine buzzed, and it handled like a freight train."
"And the lesson is?"
"Well, ma'am, we'll definitely fix the Dodge Caliber for next year."
Ford and GM got their money. Nardelli was convicted of treason and sentenced to death.
happy_penguin 6:33PM (11/20/2008)
LOL@Luigiian
++++++
Mobius_1 7:04PM (11/20/2008)
If they do do what you guys suggested, I have my doubts whether they can actually make it there...
Frank 7:11PM (11/20/2008)
Funny joke. I would use the the Pinto for Ford instead of the Mustang II but still good.
Sad thing is you can swap the players around and it still works: Wagoner first in a Vega, Nardelli second in a Plymouth Volare that rusts out before he gets to DC, Mulally third in a Ford Focus. I know, Sync is cool but the car is ugly and the platform is old. Or Nardelli first in the Volare, Mullaly second in the Pinto, and Wagoner third in an Aveo. See? Works anyway you slice it.
Obviously DaMinority 6:51AM (11/21/2008)
You forgot to mention that Pelosi gets out of her private jet, climbs into her BMW (Her DC 3 series, not to be confused with her Cali' 3 series convert.) and breaks multiple traffic laws on the way to her office as the most powerful lawmaker on YOUR payroll...
Just wanted to get to the details.
The Luigiian 9:29PM (11/20/2008)
Frank, you're absolutely right on all counts. The reason I used the Mustang II is because it pretty much symbolizes bad American automotive thinking of the seventies for me. Replace the V-8 with a V-6 saddled with seventies emissions, cramped interior, and worst of all, give the mediocre car a great name from the sixties.
But nevermind that. Yep, take the Caliber and replace it with a Focus or Aveo and you've got the same idea. Moral of the story: When you're asking for money to make more cars, don't drive the worst car you make to the begathon.
Maybe in a couple years they can drive a Cruze or Euro Focus to show off the best in Detroit metal.
j 10:39AM (11/21/2008)
what a show
phuqed 10:43PM (12/11/2008)
Why is it that Toyota just built a huge factory in texas creating jobs yet the " Big 3" Have factories in Canada and Mexico? They want to show us that they "are America" Way to show it send the jobs somewhere else........... Doesn't make sense to me to throw my tax dollars into companies that are going to use it to pay peoples of other nations. This goes for all companies that outsource to other countries. It doesnt make sense to me sending jobs and our money somewhere else where it will do nothing for us. I guess the ratio of 475 to1 in The United States (ratio of what a ceo is paid to the average employee) has to be kept up by any means, if that means outsourcing then so be it. I believe the "big3" made their beds so they should lay in it. If one or more goes down there will be another to replace them at some point or another. For all we destroy we only build better and stronger in the aftermath of the carnage. If they can't fix their problem I do not think its the American peoples responsibility! How many small businesses fail everyday? Should not therefore the government bailout every failed business? I think not. GM, Ford, Chrysler sorry about your luck but hey you can go back to the roots of a single building and then I'm sure you'll do just fine.
ken_aisin 3:23PM (11/20/2008)
Geez... it's only $25 billion.... just give the guys a happy thanksgiving for God's sake....
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cFoo 3:58PM (11/20/2008)
What make you think they won't be back the next Thanksgiving?
I'm sorry but I don't buy this whole bailout crap. Do an investigation into accountability on the part of the people who run these companies. Then I'll believe in the bailout. People don't ask for a bailout if they make poor career or investment choices. Multiply this case by the millions of people in America. With high probability this occur everyday across America. While, the auto industry only employ"ed" thousands.
Use the bailout market and start a new industry to employ the thousands of unemployed GM workers. Maybe the time of America building automobile is over. America is dying because we're failing to adapt and change with the time. China adapted to the world's needs and look how successful they've been in recent years.
ken_aisin 4:10PM (11/20/2008)
Well, $25B isn't all that much when the other screwed-ups are getting $700B.
TJ 3:25PM (11/20/2008)
"The Democrats are calling for "accountability" and "viability" in their proposals"
HAHAHAHAAAA!!!!!!
Democrats calling for 'accountability' and 'viability' is the biggest load I have heard all day!
Harry and Nancy just want to see how much lobbyist money they can rake in, and want to look at the bill in depth to see how much extra pork they can skim off the top for themselves.
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Samurai Jack 3:28PM (11/20/2008)
Yes, because the Republicans have been so upstanding in that regard these past 8 years. Do I really need to go through the list for you TJ? Again?
ItGuy 3:30PM (11/20/2008)
Most of which came from the last time the Dems controlled the House and Senate.
ronEbear 3:30PM (11/20/2008)
And you`re opposed to accountability and viability because?
ken_aisin 3:36PM (11/20/2008)
I thought "accountability & viability" and "politicians" are mutually exclusive.
Polly Prissy Pants 3:36PM (11/20/2008)
He's not opposed to accountability and viability, he's just playing the same old partisan game that's killing the country. Republicans good, Democrats, bad, vice versa, etc etc. Nobody even wants to study the issues any more, they just want to know the party affiliation of the person proposing it.