Treasury Considers Using TARP to Bail Out U.S. Automakers (Update)

[annabanana]

Source: (CEP News)

(CEP News) - In a statement released on Friday, the U.S. Treasury said it "stands ready" to prevent the failure of automakers and is prepared to help the Big Three until Congress reconvenes in January.The headline came just minutes after White House Press Secretary Dana Perino said the president is willing to consider using money from the TARP to bail out the Big Three Detroit automakers after legislation was thrown out of the Senate on Thursday night.

The collapse of the U.S. auto industry would have a destabilizing effect on the economy, she said, adding there is no decision yet on the timing of action to be taken for the industry.

Such a move would be one of the final hopes for General Motors and Chrysler, who said they do not have the capital to meet their year-end obligations.

General Motors has consulted with law firms over the possibility of a Chapter 11 filing.



Read more: http://www.forextv.com/Forex/News/ShowStory.jsp?seq=186042&category=Market+Updates,Day+Ahead,Top+News

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Canada seems to know more about what's going on here than WE do. . .

[ksimons]

1. interesting, sounds like Bush is leading this, perhaps to salvage his honor?

seems the least likely person to step in, but maybe he'll get some karma points this way.

[KewlKat]

3. Perhaps he's spoken to God? nt

[Javaman]

5. The only way moron* could salvage any honor would be to

resurrect 1.2 million Iraqi's and 4500 US soldiers.

[OHdem10]

2. Bush is not going to let his legacy be--failure of the Big Three

Here is a headline for you.

Bush rescues Big Three when Democrats leave them to fail.

Reid Baucus Lincoln and Tester. That EGG is hard to get off your
face.

The Democrats had better learn to play hardball politics or they
are doomed.

GWB is concerned with his legacy. What were the Dems thinking???

[tjahome]

4. Illegal

The TARP legislation clearly states that the monies are to be used for the financial services industry, and to buy up toxic debt. I hope there is wiggle room language in there, but I don't think so.

Case in point: GMAC trying to get holding bank status in order to benefit from TARP. I am not giving up yet here, but I think there is a lot more blood left to be let before this process is over.

My prediction: the Big 3 get their money, but the workers end up paying for it in the long run.

[Spouting Horn]

10. This is an outrage

and reason # 50 why Bush should be impeached and removed from office.

Corporate Welfare is NEVER a good idea, and fundamentally unfair.

[jetphixer]

6. A Thought

"If Stupidity got us into this mess, then why can't it get us out? " Will Rogers

[Veritas_et_Aequitas]

7. So... what's the horrifying, Faustian catch?

[Bozita]

8. Paulson will use TARP funds to save Big 3

Source: WXYZ News

Source is aide to Sandy Levin (D-MI)

I'll look for more...

Read more: www.wxyz.com

[Kolesar]

9. Senator Bunning's'No' Vote Means Invite Cancelled (R-Ky)

Senator's 'No' Vote Means Invite Cancelled

TAYLOR, Mich. (WXYZ) - Gibraltar Trade Center has canceled an appearance by Republican Senator Jim Bunning in the Detroit area this weekend.

Bunning represents Kentucky, voted against the auto bailout. He is also a former Tiger pitcher, and member of the Hall of Fame. He was scheduled to sign autographs at Gibraltar Trade Center in Taylor. The facility sent out
the following press release on the cancellation:

Gibraltar Trade Center in Taylor cancels Jim Bunning Appearance

IMMEDIATELY upon notification of Senator Jim Bunning’s vote regarding his stance on the automotive industry, Jim Koester, President and Founder of Gibraltar Trade Center canceled the contract between Mr. Bunning and Gibraltar Trade Center for an autograph appearance that was scheduled Sunday, December 14th, 2008.

Mr. Koester said, “Being a business owner in Michigan for over 30 years, I simply cannot support anyone who, in my opinion, votes against the economic well being of our great state.” Mr. Koester went on to say, “The contract between us and Mr. Bunning was signed well in advance of the auto vote.”

Gibraltar Trade Center has supported local vendors and entrepreneurs who want to start or expand their business in Michigan for over 30 years.

Bunning was first elected to the Senate in 1998, 2 years after he was inducted into the Baseball Hall of fame. Since then he has had an undistinguished career. In a 2006 Time magazine survey of academics and current and former senators, Bunning was named one of the Senate's five least effective members.

That puts his Senate career in sharp contrast to his baseball career, during which he was a standout for the Tigers, and the first pitcher to win 100 games and throw 1,000 strikeouts in both leagues.

Bunning is up for reelection in 2010. He voted against the bailout, telling reporters that he favors a bankruptcy filing that would allow the automakers to more expeditiously recind their labor agreements. The Senator's press secretary says his tight schedule will not allow him to talk with the Michigan press.
http://www.wxyz.com/news/local/story/Senators-No-Vote-Means-Invite-Cancelled/rMc6mY88j02DWhuUK0ZFbQ.cspx

What I found at WXYZ!

[1gobluedem]

11. Good for the GTC

I was going to urge my fellow Michiganders to picket the signing but now I don't have to.

[elifino]

12. White House Bails Out Automakers: Everybody Wins, Save Taxpayers

Source: YAHOO FINANCE

The White House stepped into the breach early Friday, expressing support for Treasury to use TARP funds to bailout the U.S. automakers.
"Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," said Treasury spokeswoman Brookly McLaughlin.

The U.S. stock market was still down Friday morning but the worst fears of some market players did not materialize (at least not yet) after the TARP news broke.


Read more: http://finance.yahoo.com/tech-ticker/article/144949/White-House-Bails-Out-Automakers%3A-Everybody-Wins%2C-Save-Taxpayers

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Good news?

[amdezurik]

13. no Brookly, it was because REPUBIC senators

blocked it.

[dipsydoodle]

14. Stand ready ?

They have yet to do it so the headline is a bit precipitous.

"White House considers auto rescue" might be a bit more accurate.

The White House says it is considering using money earmarked to rescue the US banking industry to bail out the country's struggling carmakers. http://news.bbc.co.uk/1/hi/business/7779981.stm