Congress punts bailout. You agree?

November 20th, 2008, 12:20 pm · 17 Comments · posted by Dena Bunis, Washington Bureau Chief

Congressional leaders have decided to punt any further action on a possible auto bailout this week. Instead, they’ve given the car manufacturers until Dec. 2 to present a plan to lawmakers.

If the plan is considered “accountable and viable,’’ in the words of House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, then they’ll call colleagues back during the week of Dec. 8 to act.

“Unfortunately, the sad reality is no one has come up with a plan that can pass the Senate and House of Representatives and get signed by the president,’’ Reid said. He said the car companies have been “unable to convince the American people that this bailout will be its last.’’

I wrote a story that has most of Orange County’s lawmakers skeptical about a bailout and some suggesting they use bankruptcy to reorganize.

Should Congress come back and bail out automakers?

“We reject those who are advocating bankruptcy for the industry,’’ Pelosi said. But she added that she didn’t hear much from the Big Three CEOs who testified on Capitol Hill this week that showed they had a plan in place.

Reid said it didn’t help that the CEOs came to Washington on private corporate jets.

The leaders didn’t specify what would have to be in the automakers’ plans to prove to Congress that the companies will be accountable and viable. They left it up to Sen. Chris Dodd and Rep. Barney Frank, who head the banking committees, to review the plans and possibly hold hearings after Thanksgiving.

“Yes, we’re kicking the can down the road because that will give us an opportunity to do something positive,’’ Reid said. “But that will only happen if they get their act together.”

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Rick says:

November 20, 2008 at 3:50 pm

Have them all sell their lear jets and use that $ for their own bailout. Next the Detroit lions and the Oakland Raiders will be asking for a bailout…

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audiogirl says:

November 20, 2008 at 3:52 pm

“We reject those who are advocating bankruptcy for the industry,’’ Pelosi said.”

Too bad we can’t reject Queen Pelosi. Where does she get off???

Perhaps if she worked a day of her life in the private sector, she’d have a better clue as to why the overwhelming population is against this plan.

She’s spent too much time in the pockets of the lobbists and unions.

Tk says:

November 20, 2008 at 4:02 pm

How dare congress tell the automakers to come up with a viable plan and then come back in a week. The very congress that bleeds our tax dollars without recourse on whatever they can get away with. This country’s economy is driven by 2 major industries, housing and automobiles. We all know what happend to the first one. Letting even one car manufacturer fail will hurt our economy to no end. Congress needs to get off of thier high horse and do the right thing. Another great depression is looming if no one has noticed yet…

Clean up says:

November 20, 2008 at 4:16 pm

The auto industry, and even more so the labor unions, have to get serious. Our auto industry CANNOT COMPETE in the world market. We cannot even compete in OUR OWN market. It’s time to cut out all the fat, the waste, and the ridiculous labor union BS that shackles our industry. It killed the steel industry, it’s killed every heavy industry in the U.S. Now it’s killing the auto industry.
And yes, the executives need to give up their fleets of executive jets and fly business class. They cannot justify spending millions just for the convenience of not having to check their baggage. They all have to sacrifice.

November 20, 2008 at 4:24 pm

Hi TK. You missed the biggest industry of all . . . our government. Talk about a bloated pig.

homeatlast says:

November 20, 2008 at 4:30 pm

This turns my stomach: it didn’t help that the CEOs came to Washington on private corporate jets.

Just more of the AIG debacle ~ and the Big 3 will be laughing at all of us at their Christmas parties……(and I’m a former Detroiter)

johnadams says:

November 20, 2008 at 4:36 pm

The auto industy has had a very long time to change course, but they kept pumping out crappy cars no one buys anymore. The nerve of these CEO’s to fly to Washington on private jets and beg for money. Washington is right to ask them to show them their plans. Congress wants to make sure that the money won’t go to union exec’s and the CEO’s of the big three. Don’t you fellow tax payers want to make sure your tax dollars won’t go to bonuses and Christmas parties?

The hate for government workers is silly. Just because you hate the fact that our benefits and pensions are better than yours is no reason to hate us. I have more accountability for what I do at work than I ever did in the private sector.

November 20, 2008 at 4:37 pm

Audiogirl, explain your hate for our government and it’s workers? Did you get denied a job or something?

Skipper247 says:

The congress and the people should NOT bail out the big 3, the root of the problem plaguing those industries are the unions.

The Big 3, needs to file for bankruptcy, restructure and rehire the current employees on an hourly wage. Look at the US plants of Toyota, Honda, Nissan there are No unions on those plants and they are productive and profitable.

They keep talking about “losing 3 million employees”, well they wouldn’t actually lose them, when they file for bankruptcy, restructure, then RE-HIRE the current employees, what’s so hard about that.

Bottom line is, lose the unions and your problems will go away.

Have a good day.

10yrsafter says:

November 20, 2008 at 4:43 pm

These CEO’s crack me up. What a bunch of whinning babies.
Stop living so high on the hog, and start conducting the business like you should! The cars you produce are cheap and crappy, and you pay the workers that are low on the tottum pole lousy money and you reap all the benefits. Now that your business is going down, you need help from the government! Bah!

Regroup and restructure! Get rid of the old and bring in new!
I’ll even take a job doing it, for $60,000 a year!

I saw on the news this morning conressional leaders asking these CEO’s “Who got here by flying in a private jet? Please raise your hand?”

It was too funny when the camera panned over to them and they sat their looking stupid.

NO, PLEASE DO NOT BAIL THEM OUT! Ever!

November 20, 2008 at 4:54 pm

I’m sorry that so many people might lose their jobs, but frankly, this can’t be the first they heard that their jobs might be on the line.

X-DEM says:

November 20, 2008 at 5:00 pm

No bailout! If GM, FORD and Chrysler fail, it is the work of these greedy CEOs who aren’t what they portend to be. Stupidity and greed is what caused this crisis. The first thing that should be done is for all these CEOs to be fired without compensation. The second things is to renegotiate the autoworkers salaries and pensions.

framer says:

November 20, 2008 at 5:20 pm

let them all go under and let aig go under also, they sure as hell woundn’t bail us out

Dave says:

November 20, 2008 at 5:46 pm

Skipper 247 hit the nail square on the head. The Unions are, and have been the problem all along. Unions served their purpose at the turn of the 20th century, its a new world today. Wake up!!!

Detroit_Fan says:

November 20, 2008 at 6:20 pm

To all of those that oppose the auto loans (not a bailout) to the Detroit automakers better start preparing for a Depression the like of the Great Depression.
Fact:
can GM and Ford compete on worldwide basis?
Answer is yes, GM up to this point is the number one selling car manufacturer in the world, followed very closely by Toyota.
Fact:
Does GM and Ford produce fuel efficient vehicles?
Answer is yes, GM produces more cars that get over 30-mpg than any other manufacturer. They were late on producing hybrids but will have a game changing car (Chevy Volt) that will drive circles around the Prius. I can see why the Japanese manufacturers want GM to go under.
Fact:
The union is to blame for everything bad that has happened to the Detroit 3.
Answer not really, they have an agreement that cuts there pay in half (comparable to Nissan, Hyundai and Toyota workers in the U.S.). The union bargained for their workers and in the past made deals to some that people don’t like, but wouldn’t you want to make the most you could.

Keep an open mind and don’t listen to these jokers on the nightly news. By the way, if you are a big supporter of Republican, Senator Shelby from Alabama who opposes the government loans. Note this: he never complained one bit that his state shelled out hundreds of millions of dollars to Mercedes and other automakers to setup plants in his state. That is how hypocritical some these politicians have been on this subject. Don’t be fooled.

So what is the problem? The banks are not loaning money to businesses or to people that want to buy cars and trucks.

F.Lee says:

November 21, 2008 at 7:30 am

Hey Audiogirl,
Next time you open a can of vegetables or you become ill because the food product was contaminated (cooked dead rat), think again about the bloated government. U.S. Customs can only inspect about 1% of imports; the FDA has cases backlogged to 2007 because of lack of resources. It just hired another 700+ people to train as investigators and scientists.

And, of course, you heard about the blood thinner, heparin and the babies, and unethical doctors using imported and less effective chemo drugs on their cancer patients because they can pocket the difference when billing Medicare. I thought the same about government til I got into it.

Have a Happy Thanksgiving…and WATCH WHAT YOU EAT over the holidays. It’s dangerous out there.

A federal employee

Mark says:

November 22, 2008 at 3:43 pm

Yes Congress should return and not be allowed to leave Washington until they understand what their so called free trade agreements have done to this country. Giving a loan to the most important industry in our country should be their top issue. The Big 3 CEOs are not guilty of criminal, or very near criminal actions like the banking industry’s CEOs. Detroits CEOs sheets are not clean and in their defence they have worked very hard in the last few years on these contracts and wages. You just have not heard about the changes and details yet. I agree with Detroit_Fan here when it comes to facts. GM produces more cars that get over 30-mpg than any other manufacturer in the world. Detroit has also won more JD Powers and Car and Driver awards in the last 2 years then Honda and Toyota. I sent both my kids to college and today they both work in Europe. The good engineering jobs are leaving the US also. Both my children are thinking of starting a family and don’t believe they will be returning home anytime soon. German government supports their auto company’s quite good and jobs there pay very well. (Better then the US) Looks like the Germans are importing smart engineers from the US, building cars and exporting them to the US. Both VW and BMW sales are doing very well here in the US. It’s becoming a global workforce also not just free trade market. I spent some time in China last year and every young person I talked with asked me why the US did not do more to protect it’s economy from the rest of the world. I really did not have a answer. Dave is correct, go out and look in your garage or driveway and if you see a Honda, Toyota don’t cry when you and your children don’t have good paying jobs. It will all stop when the US people can no longer afford the products the world imports to us. China has no middle class that’s why we do not import anything from the US into China. China has said openly once they have established a working middle class their country will be self-employed and will not need to export anything to the US. Japan has already completed the cycle and now just want wealth from the US. Once they have sold you as many cars and drained you dry they will also leave. I’m not sure why the US is doing nothing to protect it’s economy from the rest of the world. It’s getting that I don’t care anymore like the rest of you. I’m looking forward to many vacations in Europe visiting my children. Children are all we are going to have left in the end. Your so into Me Me Me Me Me you cant see whats really going on. Good luck to every last one of you.

Orange County Register