NEW YORK (CNNMoney.com) - The White House and leading congressional Democrats have reached an agreement on legislation to provide a stopgap bailout to U.S. automakers, according to officials from the administration and Congress.
White House Deputy Chief of Staff Joel Kaplan cautioned at a press briefing that he had not seen the final language of the bill but said that great progress had been made on bridging differences with congressional Democrats.
Kaplan said administration officials would push reluctant Republican lawmakers to support the deal.
A vote could take place in the House as soon as Wednesday.
$15 billion now ... and how much later on ? $15 billion surely won't be enough. Hope it does not go thru.
Please all of you, ask yourself...WHO IS JOHN GALT? If you don't know who he is then find out!
Pull the remaining money from them and the auto industry and give it to US the taxpayers as a one time , tax free, "bail out". Give each family the money, those that pay taxes, and let us use the money to pay bills, invest, save, and buy cars…want the economy stimulated, give the money to the people who can use it, and who can begin to move things in the right direction. In reality it iis OUR money to begin with,. so give it back to US,.,..not to the banks, brokerage houses, auto industry, but to the people who put thses idiots in Congress in office.
Give it to the taxpayers for their use,,,and you would see the credit, housing, auto, etc bailouts not be necessary.
Nothing like unfettered capitalism to show the way.........not!!!
Democrats – when this backfires like the one for banks, remember these words, "The White House AND LEADING CONGRESSIONAL DEMOCRATS have reached an agreement ..." Once again, it is NOT ALL Bush's fault, just like the one for the banks is NOT ALL Bush's fault.
It used to be capitalism was survival of the fittest which made us strong competitively in the world.
Now we're just Democratic and expect handouts for doing nothing. This is change we can count on all the way to the fall of the US.
I'm from Alabama and I like Richard Shelby, but he's not giving full disclosure here. Alabama has snagged plants from Toyota, Honda, Hyundai, and Mercedes in the last several years. Meanwhile our GM/Delphi plants are closing up shop and leaving the state. It strikes me as a little disingenuous to be hanging the US automakers out to dry while actively courting their competition.
After reading the testimony of Ford's CEO Mulally and Bill Ford, it is clear that Ford Motor is the only company of the Big Three that planned for their future several years ago by securing their own financing through private banking institutions and planning new lines of dependable, fuel-efficient vehicles. GM and Chrysler, on the other hand, stuck to the mantra, "If we build it, they will buy it," which were nothing but the big, gas-guzzling SUV's and full-size trucks that were raking in tons of money at the time–yeah, at the time with no thought to the future. Now the latter companies are hanging around with hat in hand for taxpayer dollars, and dragging the fortunes of Ford down with them even though Ford has a good plan a stable balance sheet. Ford will be the 21st century leader of the American automakers as they create techologically advanced fuel efficient vehicles that will compete with the Japanese models.
Kaplan reminds me of Beaker from the Muppets.
When are ordinary people going to get a bail out. seriously, people are hurting out here. the auto companies are going to lay ppl off even after the bailout, who is going to the layed off workers. Why are we not going a bailout, but our tax money is being spent to bail banks and car companies, while we go hunger and our children go hungry. This christmas is tough for many family. and no one is paying any attention to them.the rich will always keep getting rich...you know the rest....
to John Galt in Colorado – I know not Atlas shrugged :)
@sick and tired 1:37pm
Powerful comment fellow blogger, definitely food for thought!!!
The village idoits in congress and my fellow citizens who do not want to give the Big 3 a bridge loan should be put on trial for high crimes and other misdemeanors against the rest of us "real Americans".
What part of of the equation "No Loan = Economic Depression" don't you moralistic evangelical morons understand? You would rather see the rest of us and our kids stand in bread lines than help out your fellow citizens, right?
Oh great. The crooked and incompetent of Congress running even more companies and industries. Just what we need. A complete waste of money - like most things Congress sticks its nose into. They want a "car czar". So, where's the "Congress Czar" to clean up and clean out the most corrupt and inept institution on the face of the earth (with all due respect to the government of Zimbabwe).
The US without an auto industry would signal that they do not have the "brain power" in the country to compete with Japan, S. Korea, Europe etc. Is that what people want? Where is the loyalty to seeing that some US-based industries remain? Taxpayers, do not be fooled by the Republican/conservative talk. Issues pertaining only to Reglion and Abortion is not going to "save" the country. Yes, religion is important but practical issues are also important. "Give under Caesar what is Caesar's and unto God that which is God's." If the Republican senators do not support the load to the Auto industries to at least see if they can come up with a long-term plan by March of 2009, then they will have to answer to their constituencies in two to four years.
Whew, for a minute there I thought we would stop increasing the deficit.
Thank God we're continuing to drive the nails into our coffin.
$15B will about cover the pensions of the workers who no longer work at the car companies for the next year. People need to realize that the companies are where they are because of labor contracts that cannot be supported. The automakers used to be car companies with good pensions....they are now pension companies with no-so-good cars.
Stop the Bailouts! Stop the Democrats and Republicans from further damaging the economy. They are now both to blame.
We cannot afford to not bail out the auto industry. Too many jobs and spinoffs involved and it would be fatal to our country for them to fail.
There has to be guidelines and stipulations, but wonder how some politicians can make these demands with a straight face after what they have done to our country. And, after what they have let the financial institutions get away with using our taxpayer money.
Remember the Edsel? the EV-1? Pinto? Fiero? Aztek?
Ahhh, such innovation and excellent marketing. I'm sure that they will be able to figure it out. Just throw 'em some more money.
You want to know why their stocks are so low? because they stink as companies. Other companies that stink have their stocks go low until they are gone, then a new company rises with products that don't stink.
How about bailing out Tesla Motors so they can produce a cost-competitive all-electric car NEXT YEAR. Who cares about the GM Volt? it'll be another 10 years....
Any bailout should be for a structured negotiated bankrupcy!! This is a capitialist society and busnesses that are run badly should be allowed to FAIL no matter what the size. The workers should be railing against the years of bad management by their own companies. Detroit has fought against Washington for years, now that they are out of money they 'see the light'???
They SHOULD have seen the light when Honda and Toyota took over market share and only the F-150 outsold ANYTHING from Japan...
Capitialism will allow for NEW automakers with BETTER business models to emerge.
NOW BAIL ME OUT NEXT!!
I just have one question, where was the outrage when billions was given to Wall Street with no oversight, no plan, no nothing and now some banks are cutting or freezing credit which is the complete opposite of what the bailout was suppose to be for. Bush and his administration continue to screw up and the American people continue to give this man what he wants, who are the real fools!
Hopefully President Bush will sign this bill. Foreign cars makers have been subsidized for years by their governments. It's about time our government stepped up to the plate also.
@ Bruce "give it to the taxpayers as a one time...bailout". Are you completely ignorant. It would be such a small amount for each of us, it would barely purchase groceries much less pay bills, buy cars, etc. Do your math. Better to save millions of jobs than have each taxpayer buy a loaf of bread with that money.
The auto industry would not be on it's knees begging if it had stopped making crap years ago.
I just can't believe that we are going through this crap again. I thought that I lived in America, not USSR. My goodness, when will this all stop?
This is a big mistake. They will be back in two months with their hands out again. 15 BILLION is a small drop in the bucket and it is a waste of money. They need to file bankruptcy and start over.
No one is buying the cars and until they improve their product that will not change. American cars are not what they were and they can barely give them away. Let the free market make the right decision.