NYT: Chances Dwindle on Bailout Plan for Automakers

[Omaha Steve]

http://www.nytimes.com/2008/11/14/business/14auto.html?ei=5043&adxnnl=1&partner=EXCITE&adxnnlx=1226638597-Dv4L+2K6R0oh0Py51l/SEw

By DAVID M. HERSZENHORN
Published: November 13, 2008

WASHINGTON — The prospects of a government rescue for the foundering American automakers dwindled Thursday as Democratic Congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck session next week.

At the same time, hope among many Democrats on Capitol Hill for an aggressive economic stimulus measure all but evaporated. Democratic leaders have been calling for a package that would include help for the auto companies as well as new spending on public works projects, an extension of jobless benefits, increased food stamps and aid to states for rising Medicaid expenses.

But while Democrats said the stimulus measure would wait until President-elect Barack Obama takes office in January, some industry experts fear that one of the Big Three automakers will collapse before then, with potentially devastating consequences.


Susan Walsh/Associated Press

Senator Christopher J. Dodd said Thursday that he did not think there would be enough Republican support in the Senate to get the 60 votes needed to move an emergency aid bill forward.


Despite hardening opposition at the White House and among Republicans on Capitol Hill, the Democrats said they would press ahead with efforts to provide $25 billion in emergency aid for the automakers. But they said the bill would need to be approved first in the Senate, which some Democrats said was highly unlikely.

Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the banking committee, said he did not believe there would be enough Republican support to get the 60 votes needed to move a bill forward. “Right now, I don’t think there are the votes,” he said, adding that he personally favored aid for the automakers.

As the outlook for an auto industry bailout dimmed, President Bush traveled to Wall Street, where he gave a robust defense of capitalism and seemed to warn world leaders — and the incoming Obama administration — not to draw the wrong lessons from the global economic crisis by over-regulating markets and hindering free trade.

FULL story at link.

[OhioChick]

1. They must pass something.

Whether it be a bailout of sorts with stipulations or whatever, the Big 3 must be saved/helped.

[DJ13]

2. I hope the Dem leadership pushes hard for a bailout

I want the American people to know it was the Republican party that pushed 5 million people out of work and triggered the next depression.

Thats whats at stake here, hold your ground Democrats!

[doc03]

3. I look for the PBGC to come in and seize the pension plans

of the Auto companies and freeze them in place to protect themselves. They have done it before, they did that with the company I work for a few years back.

[provis99]

4. seems that Dubya is being a shit right to the last minute

Listen, Dubya. No one cares about your opinion in your lame duck administration, anymore.

[DainBramaged]

5. it's THE SAME OLD Rethug meme, fuck the workers, break the Unions

They can't get out of here fast enough.

(Hello fellow stalwarts) :hi:

As usual, only the few stand here defending the rights of all.

[Earth Bound Misfit]

6. Senate Plans Auto Industry Bailout Debate

http://www.cqpolitics.com/wmspage.cfm?docID=cqmidday-000002986446

Senate Democratic leaders plan Monday to take up legislation providing $25 billion in assistance to the struggling domestic auto industry, a spokeswoman said Friday.

The debate likely will lead to a vote on the legislation Wednesday. Details of the bill — and the procedural strategy — remained unclear. Democrats have proposed carving out $25 billion for the automakers from the $700 billion financial industry bailout cleared last month (PL 110-343), though that idea has run into resistance from the White House and congressional Republicans.

Banking Committee Chairman Christopher J. Dodd , D-Conn., said it was unlikely there would be enough votes to approve the measure in the face of GOP opposition.

The House is planning to reconvene Wednesday for a lame-duck session. Speaker Nancy Pelosi , D-Calif., and Majority Leader Steny H. Hoyer , D-Md., have been clear that progress on auto aid or a broader economic stimulus plan will have to come in the Senate first, where Republican members have the ability to block any legislation.

--snip--

Dodd, who plans a hearing on the issue next week, said a non-legislative lifeline for Detroit makes the most sense. He also noted that “under an Obama administration there seems to be a greater willingness to deal with the issue,” suggesting the automakers might get a better deal after President-elect Barack Obama takes office in January.

The Bush administration has indicated it might be more open to Congress making changes in a $25 billion auto industry loan program Congress funded (PL 110-329) in September. Those changes would be aimed at making them more immediately helpful to automakers.

“One of the things that the auto industry wanted was help sooner than those loans could provide. So what we have been wondering from Congress is ... could they figure out a way to accelerate loans for viable companies under the program that they already designed for the auto industry?” White House spokeswoman Dana Perino said. “We’re waiting to hear back from them. We just don’t know yet.”

More at link.