While the nation’s attention is focused on the Bush Administrations proposed financial industry bailout, our feckless leaders have managed to sneak another bailout past us while we weren’t looking:
WASHINGTON – The U.S. House today approved $25 billion in loans for the troubled U.S. auto industry, as Michigan lawmakers hailed the plan as key toward saving thousands of jobs in the state and vowed to press for an additional $25 billion next year to boost the industry’s retooling.
The loan deal dwarfs the $1.2-billion bailout of Chrysler Corp. in 1979, and reflects the economic crisis threatening the survival of Detroit automakers and the companies that rely on them. Automakers had made the loans their priority over the past several weeks, sending all three chief executives to blitz Congress.
Under the bill, the Bush administration will have two months to write the rules for the loans, and Sen. Debbie Stabenow, D-Mich., said she expected the money to begin flowing to the industry by the end of the year.
“There is no bigger issue for Michigan than what we’re accomplishing today,” said Rep. Fred Upton, R-St. Joseph. “This is a testament to the strengths of every member.”
The clause speeding the loans should ease concerns of some automakers and parts suppliers that the money wouldn’t be available for several months. Officials said the U.S. Department of Energy had told them it would take a year to write the rules for the loans.
While lawmakers didn’t win changes that would have let companies use the loans on a broader array of projects, they said they would closely monitor the program and press for changes if the loans did not flow freely. The industry had asked for up to $50 billion over three years, but eased off after the idea met strong resistance.
“We’ve got the best deal for the industry that we can,” said Rep. John Dingell, D-Dearborn. “I think we got that which they need to go forward.”
And by go forward, Dingell means that this is step one in what is likely to be a long process:
[H]e added: “We will be starting on the second $25 billion, which we’re going to have to get because the costs to the industry are going to be larger.”
And you and are are going to be the one paying for it.
Interesting… Loans for auto makers, but a buyout of all the bad debt for Wall St. My guess is the public would find the Paulson/Bernanke thing a lot easier to swallow if it were, in fact, loans rather than just handouts.
[...] Of course, the auto industry is already in line to receive a bailout — at the same time that Congress was still debating the $ 700 billion bailout, they passed, without notice and without comment, a $ 25 billion loan guarantee package for each of t… [...]
oh please please do not bail the auto industry out….they have known for years and years there cars were’t efficient, and yet they never planned for a slow down. dont you get it, your everyday citizen tries at least to plan for hard times…let them restructure and quit using our tax dollars for these damn corporations that dont give one hoot about the everyday person. help the everyday person, not any more corporations who do nothing but abuse our money.
ellie