Just in case some of you think that what’s good for General Motors (or Chrysler) is always good for America: (From National Review On Line)
Bailout Goes Down [Stephen Spruiell]
It appears that the auto bailout just went down in flames on the Senate floor. GOP leader Mitch McConnell had this to say:
“The sticking point that we are left with is the question of whether the UAW is willing to agree to a parity pay structure with other manufacturers in this country by a date certain. And I understand their reluctance to do that. And so far in the discussions that Sen. Corker and Sen. Dodd and others have had, they have not been willing to give a date specific by which parity could be achieved. It is upon that issue that we’ve reached an impasse for the moment.”
This means no congressional bailout for now. But the fight goes on. The automakers will now turn to the White House, which urged the Senate to pass this bill. The Detroit three will ask Bush to allow Paulson to use some of the bank-bailout money to save the car companies. It’s possible that Bush will cave, but one hopes he won’t want to go out on that note.
The Audacity of Hope: Chrysler Won’t Invest Its Money But Expects Congress To Pony Up Your Money [Andy McCarthy]
From the WSJ story this morning on the collapse of the auto bailout:
“The collapse of the deal raises the stakes for Chrysler and its majority owner, Cerberus Capital Management LP. Lawmakers had called for Cerberus to put more money into the company, but Cerberus maintains it can’t because the bylaw of its investment funds prevents it from putting more than a small percentage of its investors’ funds into any single investment…. Chrysler Chief Executive Robert Nardelli told Congress the company would be unable to pay suppliers and employees if it doesn’t get loans by the end of the month.”
So Chrysler’s owners say, “You’re nuts if you think we’re going to throw our money at our loser business model” — they sit on their own wallets, play chicken with their workers and creditors, and expect the idiot taxpayers to say, “No prob — we’ll pony up for you.”
All praise to Mitch McConnell for leading the charge that beat back this lunacy. Can someone explain why the White House thought this was a good idea?