White House promises last-ditch auto rescue

[question everything]

Source: AP


By DAVID ESPO, AP Special Correspondent David Espo, Ap Special Correspondent 39 mins ago

WASHINGTON – With Congress gridlocked and the economy floundering, the Bush administration declared Friday it would step in to prevent the "precipitous collapse" of the U.S. auto industry and the disastrous loss of hundreds of thousands of jobs sure to follow.

A day after the sudden demise of rescue legislation in Congress, carmakers were talking with the administration and the Federal Reserve about how they could still get the billions of dollars they say they need to survive. The talks included conditions that automakers would have to meet, said GM spokesman Greg Martin. The administration said no decisions had been made on the size or duration of the new bailout plan, or what type of concessions might be demanded from the struggling automakers, their workers, stockholders or others.

(snip)

Perino added, "Given the current weakened state of the U.S. economy, we will consider other options if necessary including use of the TARP program to prevent a collapse of troubled automakers. 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."

TARP is the $700 billion Troubled Assets Recovery Program, the financial industry bailout plan enacted in October. All but $15 billion of the first $350 billion has been dedicated to troubled banks or insurance companies, and the Treasury Department is barred from dipping into the second $350 billion without a formal notification of Congress. No decision has been reached about such a notification, administration officials said. If one is made, Congress could then vote to prevent the action, but it would be unlikely to prevail in a showdown with the president.




Read more: http://news.yahoo.com/s/ap/20081213/ap_on_go_pr_wh/meltdown_autos

[GreenTea]

1. Anything these repug assholes propose will be to weaken or break unions....who

will screw the workers, who can trust these republicaqn corporatist?

I assume we all know better by now...It's all about screwing labor, workers, in favor of some nice bonus' & bailouts for the rich, corporations.....their friends and contributors.

We KNOW this, don't we?

Republican ideology!

[Hubert Flottz]

2. This giant rat smells to high heaven...

Baiting congress to turn the other 350 billion loose for the bushites to plunder. Using the Auto workers and the auto industry support people's jobs for the bait. It's called "COMPASSIONATE" CONservatism.

[tclambert]

3. Now we count on President Bush to save the auto industry?

Great! Everything will be fine now, 'cause he's the kind of meticulous planner who never screws up.

Oh, wait . . .