Stalemate dims prospects for $25B auto bailout

[question everything]

Source: AP

Nov 17, 5:40 PM EST

By STEPHEN OHLEMACHER and JULIE HIRSCHFELD DAVIS
Associated Press Writer

WASHINGTON (AP) -- Prospects dimmed Monday for enactment of a $25 billion bailout for the faltering auto industry before year's end, as congressional Democrats and the Bush administration seemed headed for a stalemate. Help for Detroit's Big Three, which have been battered by the economic meltdown that has choked their sales and frozen their credit, is falling victim to a partisan fight over where the money should come from.

Senate Democrats said they would press ahead with their plan to carve out a portion of the $700 billion Wall Street bailout to pay for the loans, but aides in both parties and lobbyists tracking the plan acknowledged they did not currently have the votes to do so. The White House and congressional Republicans insist that the automaker bailout money instead come from redirecting a separate $25 billion loan program approved by Congress to help the industry develop more fuel-efficient vehicles.

In addition, besides opposing the use of any of the $700 billion for the automakers, the administration has told top lawmakers it does not plan to ask for the second half of that huge fund that Congress approved this fall to aid the financial industry, congressional officials said Monday.

The Treasury Department said its message on not tapping half the fund applied only to the next few days and that no decision had been made for the rest of the administration's two months - but officials stopped short of saying the funds would be used before Bush leaves office. Majority Leader Harry Reid, D-Nev., said he would hold a test vote this week on a broad economic aid plan - including spending on public works projects, aid to cash-strapped states, an extension of jobless aid, and the carmaker loans - that most now concede has virtually no chance of passing. If that fails, he will seek a vote on the auto industry bailout and the unemployment benefits, Reid said. It could come as early as Wednesday.



Read more: http://hosted.ap.org/dynamic/stories/C/CONGRESS_RETURNS

[Gman]

1. This is all about Bush and the GOP'ers in Congress

punishing the UAW for supporting Obama. Probably unions in general with the UAW having the most exposure right now on this issue.

[kirby]

2. Detroit can/should wait...

Let Obama take office and then a comprehensive plan can be worked on. I think Detroit wants to ram through a lame duck bill with no accountability and no strings.

[JJ]

3. Just take the $25 billion from...

one of Dick Cheney's Cayman Island accounts, he probably wouldn't even notice that chump change missing.

[kirby]

4. ExxonMobile profit was $11.5B for one quarter!!!

Why don't they bail them out?

They spent $8B buying back their own stock with all the cash they had lying around.

[question everything]

5. That's true. If fewer people drive a car, there goes ExxonMobile profit

After all, these two groups colluded in the 50s the eviscerate the light rail in California.

[acmavm]

6. Go ahead repubs, don't give Detroit any money. Michigan

will be ours FOREVER. Bwahahahahaahhahaha!