The real reason for the auto bailout package: Bush and Cheney didn’t want to be the ones to pay for automakers’ funerals and preside over their estate sales.
While he tries to couch it in a way that makes it sound like the shit sandwich that was handed to the Obama administration was actually a favor, it’s pretty obvious that the move was nothing more than an almost Clintonesque CYA move to keep at least part of W’s legacy intact.
Somewhere, deep in the heart of suburban Dallas, former President Bush is wishing Dick would just STFU and retire already.
l3wis
Nice try Dude, but you may recall that the UAW was not interested in negotiating in good faith with a lame duck Admin., when they knew their main benefactor was about to assume the big boy chair. As late as last summer when the Auto execs were being blasted for how they got to the Hearings, Ron Gottafingeruknowwhere (UAW Pres.) was telling everyone “No concessions from us”.
“President-elect Barack Obama supports the bailout and has called on the industry to revamp, particularly in his call for 1 million hybrid cars on the road in the next 10 years.
The UAW was pivotal to Obama’s Election Day victories, particularly in Michigan and Ohio, and if Congress stalls on the bailout, Obama might have to choose between the most prudent deal for taxpayers and standing by the union.
“Obama has been talking about bailing out Detroit, but he would likely rather have Bush do it, so he won’t have to choose between the taxpayers and the union,” said Barry Ritholz, CEO of Fusion IQ and author of “Bailout Nation.”
and:
“But, the big issue right now is whether Congress is going to require the Treasury Department to provide a bridge loan now. GM and Chrysler might not make it to an Obama administration. The companies can’t wait for a President Obama, we need action now.”
http://blogs.abcnews.com/politicalpunch/2009/03/false-talking-1.html
The UAW bares a lot of the blame for the companies’ demise for sure, but to pin this whole thing on Obama as so many republicans have attempted is just asinine.
I don’t really blame Bush and Cheney for the bailout – any president faced with a similar situation would have done the same. What I don’t like is the belief among some that Obama is somehow behind it all, when all he’s doing is carrying on the policies of his predecessor.
Also, what would McCain be doing differently?
No, I think the bigger question is, would McCain would be doing anything?
L3wis,
“No, I think the bigger question is, would McCain would be doing anything?”
I guess that’s the million dollar question and a lot of it would depend on who he had in a Treasury Sec.
But I don’t think anything could’ve been done to actually prevent GM/Chrysler’s fall. I just speculate that those who picked apart the bones would’ve been in that actual order that they should’ve been: investors/bondholders/dealers/suppliers/UAW/Govt.
I think the ripple effect on how the investors got hosed and the UAW got moved up will have a choking effect on the markets for as long as they percieve Obama will be in power. This will impact the Credit markets and along with the impending devaluation of our dollar, this may very well mean a lot more pain and a lot longer recession.