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.
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