Earlier this week, Robert Reich expressed his concern over reports that the Bush Administration would bail out the Big Three even after Congress refused: "An economic crisis is no excuse for turning our back on democracy."
Today the Bush Administration announced that it would provide $13.4 billion to the car makers immediately from the Troubled Asset Relief Program. Another $4 billion would be made available in February.
A blow to democracy? Or democracy vindicated?
Remember that the House of Representatives passed a bailout plan, but Republicans prevented it from coming to a vote in the Senate. The loan announced today extends a lifeline to the Big Three while we wait for the consummation of our uncommonly long transition of power to the Democrats. Bush avoids being Herbert Hoover, and the Obama Administration is given the opportunity to deal with the problem.
It's a no-brainer.
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1. Posted by Randy Picker on December 19, 2008 @ 10:48 | Permalink
On democracy, I don't really get this issue; see http://uchicagolaw.typepad.com/faculty/2008/12/car-bailouts-and-democracy.html
2. Posted by fedgovernor on December 22, 2008 @ 11:26 | Permalink
Reich claims: "That other bag, by the way, called the Troubled Assets Relief Program, or TARP for short, was enacted to rescue Wall Street, not the automobile industry."
This clearly demonstrates that Mr. Reich has not read the TARP legislation. If he had, he'd be aware of the fact that the Congress specifically authorized the Treasury to spend the TARP money on any damn thing it pleases.
The Congress long ago forfeited its leadership on the economic crisis and handed the Executive an $850 billion slush fund. It did not limit how that money could be spent in any way, shape, or form.
Reich is an idiot.
3. Posted by auto finance on April 25, 2012 @ 12:09 | Permalink
The auto bailout happened during Obama administration although it the plan was passed during Bush's administration. The company that benefited greatly from this move by the government was GM. Since then, GM has never looked back. It's starting to gain grounds again in the auto industry.
4. Posted by Car Loans on February 12, 2013 @ 17:52 | Permalink
The problem with the government is they don't allow capitalism to take its natural course. If a business is about to fail because of their poor decisions, let them fail. Bailing them out doesn't allow the natural progression to play out.
5. Posted by Car insurance Premium on April 8, 2013 @ 4:22 | Permalink
That’s surprising. I would’ve expected the house to take priority. I guess finding flexible enough auto lenders might help people properly handle both.