Bush is trying to save his reputation by not leaving the white house with an Auto industry disaster on his watch. He’s too late on both ends. His rush to attempt to use the Wall Street bailout money to save the Auto Industry should not go through without severe stipulations being placed on the industry and its infrastructure.
Running out of time and options, the White House said today it would consider using money in the Wall Street bailout fund to prevent the U.S. auto industry from collapsing after the Senate refused to pass a rescue bill endorsed by President George W. Bush and congressional Democrats last night. “The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,” White House press secretary Dana Perino said.
The Wall Street bailout fund is one of the few remaining options for General Motors Corp . and Chrysler LLC, which have said they could run out of cash within weeks. Bush had originally refused to use the bailout fund to help the automakers, insisting that help come from Congress. But the White House said it must reconsider after the Senate failed to agree on a $14 billion rescue plan.
“Congress spoke last night. They don’t have the votes to do anything,” Perino told reporters on Air Force One as Bush traveled to a commencement speech in Texas . “They didn’t get it over goal line and so we have to consider what other options we would take.” She declined to say when a decision would be made.
About $15 billion from the first half of the $700 billion financial bailout remains uncommitted. Treasury in the past two months has pumped out about $335 billion to banks and insurance companies. To begin tapping the second half of the bailout, the administration would first have to notify Congress, which could block it or put new conditions on how the money is used. This is where the stipulations on the greed and corruption from the Auto industry needs to be placed. American auto makers have been ripping off Americans for DECADES. Cheap auto parts, poor assembly, too many recalls, service price gouging, limited and useless warranties, loans with exaggerated interest rates and more.
The Senate’s rejection of the $14 billion rescue plan and further evidence of a deepening global recession made world stock markets plunge. U.S. stock index futures pointed to a big sell-off later on Wall Street . The Dow Jones industrial average was projected to drop 278 points, or 3.2 percent, to 8,292, while the broader Stand ard & Poor’s 500 index was forecast to fall 33.80 points, or 3.9 percent, to 840.70.
In Detroit, United Auto Workers President Ron Gettelfinger said he was confident that a solution to the auto industry’s financial crisis will emerge in Washington despite the Senate’s defeat of a bailout bill.