So Bush gave in on the auto money, but Paulson is now angling to spend the rest of the TARP funds

[bigtree]

That was their only motivation; to get Democrats to accept their arbitrary purchases of inflated bank stocks and to spur the release of the rest of the funds before Pres. Obama can get control over them.

Auto workers will get a pittance from the TARP funds to trickle down on them and banks are now rubbing their hands together in anticipation of another multi-billion dollar Christmas present from their WH relatives.


here's one account: http://www.portfolio.com/views/blogs/market-movers/2008/12/19/paulson-grasps-the-automaker-nettle

. . . Last night, I asked Hank Paulson, in a submitted question for his appearance at the 92nd St Y, why he was dilly-dallying over an automaker bailout and whether or not to ask for the second tranche of TARP funds, after having been so decisive all the way up to the election.

I should ask these questions more often: today I get the news that Paulson is not only releasing TARP funds for Detroit, but has kindasorta asked for the rest of his TARP money too. Here's the relevant bit of his statement: http://blogs.wsj.com/economics/2008/12/19/paulson-statement-on-stabilizing-auto-industry/

It is clear, however, that Congress will need to release the remainder of the TARP to support financial market stability. I will discuss that process with the congressional leadership and the President-elect's transition team in the near future.

This is less than crystal-clear, but Damian Paletta says that it "signals a shift from recent statements when he suggested he wouldn't ask for the rest of the money". It seems to me that Paulson is saying that the only way he'll formally ask for the second tranche is if he has the support of Barack Obama's transition team.


read: http://blogs.wsj.com/economics/2008/12/19/paulson-statement-on-stabilizing-auto-industry/

[kirby]

1. A Master Stroke of Genius!

Use the Auto bailout money (which will come from TARP) as the reason you MUST have Congress release the remaining $350 Billion for the financial bailout.

[BobRossi]

2. "Gave in"?

Blatant union busting is what it is.

[bigtree]

3. yep, the union busting is their goal

but the release of the money was calculated to throw a bone one way and take off with 95% of the cash the other way.