WSJ: Obama nixes auto suppliers' request for aid
According to The Wall Street Journal, President Obama has taken a pass on granting auto parts suppliers' request for $10 billion in aid, leaving the financially-strapped companies to seek succor from Congress instead.
While the president's administration says it will keep a wary eye on the state of the industry, no more federal aid appears to be in the cards. As quoted in the WSJ, Neil De Koker, president and CEO of the Original Equipment Suppliers Association says that he thinks the government won't financially intervene further "unless we see chaos or a disorderly situation arising where have assembly-line shutdown due to lack of ability to get parts or stuff like that, then we would relook at this situation..."
While the industry's highest-profile bankruptcy have undoubtedly been that of General Motors and Chrysler, major suppliers like Karmann, Visteon and Metaldyne have also filed in recent months, and industry watchdogs see the potential for many more red ink stained white flags to be erected before the industry's economy recovers.
[Source: The Wall Street Journal | Image: Saul Loeb/AFP/Getty]
Reader Comments (Page 1 of 2)
BoxerFanatic 3:48PM (6/16/2009)
Nah,
Government doesn't need to, when GM is giving BILLIONS to a private investment firm to bring Delphi back from bankruptcy.
While GM is on the taxpayer hook.
Who needs oversight and accountability, when the executive branch can flout it with Czars, and strong-arming formerly free enterprise entities, without legislative process.
Reply
Mr.Oak 3:59PM (6/16/2009)
Huh??
Pick a side you are either for or against bailouts. Or are you just Anti-Obama, and will just pick the opposite side of any stance that he takes. Which is it?
BoxerFanatic 4:13PM (6/16/2009)
Check your sarcasm meter, man.
I have been against ALL of the bail outs, and BOTH administrations doing them.
I am also against the flouting of the system of checks and balances built into the government by the constitution.
But flouting the constitution seems to be the only thing this government is actually good at doing, and the US-Gov't->GM->Platinum private equity firm->Delphi is flouting the congressional representative process of making policy. It is picking and choosing who gets what money, without congressional liability or oversight, or accountability to the people.
The Czars in the executive branch, are also unaccountable to the people, via Congress, where the Cabinet members ARE supposed to be.
My side is not in question. But who's side is the administration on? Certainly not on the side of private enterprise and free market capitalism, or limited federalist government.
Dude 4:19PM (6/16/2009)
+1 BoxerFanatic
Redeemed 4:28PM (6/16/2009)
Careful Boxer, or you will be accused of listening to Rush Limbaugh, watching Fox News, and wearing a tin foil hat all at the same time for making comments that support how the government is supposed to work and not how the messiah is running the show.
why not the LS2LS7? 5:00PM (6/16/2009)
BoxerFanatic:
So just to double check, you're here bitching that the administration for once didn't engage in the list of activities you don't approve of?
If you want to make your point, maybe you could do it more like this:
'Good decision. The last bailout was a dumb idea, it's about time you got the message people have been sending.'
BoxerFanatic 5:12PM (6/16/2009)
LS7,
You aren't getting it. The executive branch is leaving the legislative branch behind.
They have moved beyond congressional malpractice for bail outs... the bail outs granted the executive branch, especially the SecTreas, unprecedented power...
Now they are funnelling and channeling that money via unaccountable executive branch control, without even needing the congress to approve it.
They have gone from horrific, to EVEN WORSE. Not better. Different corruption != better.
why not the LS2LS7? 9:40PM (6/16/2009)
I do get it. You hate the Obama administration. Sorry for trying to look for facts and understandable reason in your post.
BigMcLargeHuge 3:58PM (6/16/2009)
The Obama way seems to be to wait until situations hit catastrophic and then intervene on an unnecessary scale.
It's called a power grab. Sole reason to spend as much as possible on failing industries so you can tax successful ones (taxed into failure) is in the end the government owns both and puts party-affiliates in positions of power.
Big government = economic death, but they won't care since they'll be in the apparatchik by then.
Better to be a dictator of a 3rd world, 2nd-rate America than an average citizen of a successful America. Democratic party strategy in a nutshell.
No, I'm not anti-law, or any of the founding 'liberal' principles. The Democratic party has no principles right now except shameless self-promotion.
They are not 'liberal' by definition, because they are skirting the law. The Party itself is acting like organized crime, that's what I don't like about it.
Reply
BoxerFanatic 4:22PM (6/16/2009)
A-men.
Your comment about ruling a ruined america, rather than being only a smaller part of a successful america is a bullseye hit with a laser sight.
It is hard to identify with, for the people who love freedom, but as Sherlock Holmes said, if you eliminate everything else, whatever remains, however unlikely, illogical, or hard to identify with, is usually the truth. There is no other explanation for such totalitarianism than sheer power-greed.
Tim 4:35PM (6/16/2009)
If any of you douchbags had a frakking clue, you might actually be dangerous.
BigMcLargeHuge 5:24PM (6/16/2009)
Tim,
We can see past 2 weeks into the future.
They are now part of the gov't-owned supply chain.
BoxerFanatic 5:26PM (6/16/2009)
Tim,
instead of calling people names, and lobbing cheap shots, why not back it up with something...
Exactly how are we incorrect?
How can the current administration be seen to be doing anything BUT consolidating power in the US government, the executive branch particularly?
Otherwise, you are a vulgar troll with nothing but insults. Buzz off.
Ray 5:42PM (6/16/2009)
BoxerFanatic,
I wish I could shake your hand. You tell the truth more eloquently than I could ever hope to. Too bad we can't meet up and discuss some of this stuff. You seem like a guy who has his head screwed on straight, unlike most of the people I know. Maybe at the ballot box?
bvz 8:32PM (6/16/2009)
Tim,
I am on the polar opposite side of this debate from boxerFanatic... but you just ain't got any manners whatsoever.
BoxerFanatic 9:28PM (6/16/2009)
Ray, Thank you for that very fine complement.
It is always encouraging to see other people out in the world who have their eyes open. It restores some faith in the american people, when many other things from the usual suspects tend to attack that confidence.
You, and others remind me that there are more of those of us who love freedom than there are of those who don't care for, or recognize it. I am not talking about party affiliation, but the American spirit and dream.
And you'd better believe I'll be at the ballot box. I'll see you there. :D
Redeemed 4:09PM (6/16/2009)
Why go through all that red tape and let Obama & cronies control your business if the end result is going to be bankruptcy anyways? The suppliers should consider this move a blessing and look at what happened to GM/Chrysler in recent months. If they need to move into bankruptcy, then go, without selling your soul to Washington.
Reply
BoxerFanatic 4:17PM (6/16/2009)
It is too late for that.
Even if they enter bankruptcy on their own accord, bankruptcy precedent and contract law has been destroyed, and there is no longer consistency of rules to count on.
And no reason why the government won't swoop in while companies are in bankruptcy, and seize ownership.
More business seizure power is coming. Obama will present it tomorrow with his reform plans. I would say watch the news for it, but it won't be reported accurately.
Tim 4:37PM (6/16/2009)
And THEN he'll send in the Black Helicopters... just you wait!!!
Redeemed 4:52PM (6/16/2009)
"Even if they enter bankruptcy on their own accord, bankruptcy precedent and contract law has been destroyed, and there is no longer consistency of rules to count on."
Yes very true. If you are a corporate bond holder you have lost much of your security in your investments.
The only secure investment now is a CD because it's FDIC insured. Oh wait, there is no money left in Washington either.
Never mind. We are doomed.