Commentary Magazine


Contentions

Bailout Mania Screeches To A Halt

It seems that the alternative mode of transportation taken by the Big Three CEO’s to Washington D.C. didn’t deliver a different result. At least not now. It appears that the public has had it and Congress is intensely “skeptical” — the new favorite term for “not going to explain to the folks back home why taxpayers should throw more money down a rathole” — about a bailout. This report suggests that, despite their expressed fondness for the car industry, Democrats aren’t much moved to do anything:

Many Democrats, despite the support of party leaders, remain ambivalent. And across the board, sharp disagreements exist over the source of taxpayer funding for any rescue, how much would be committed and under what terms.

Asked Wednesday about Detroit’s appeals for aid, Mr. Obama dodged, saying he would watch the hearings before deciding what assistance is warranted. Transition officials say they see no advantage in shaping legislation that Democrats hope to complete before the Jan. 20 inauguration.

After his electoral triumph, Mr. Obama tapped Michigan Gov. Jennifer Granholm and former Michigan Rep. David Bonior for his economic advisory panel, saying the auto industry is the backbone of U.S. manufacturing.

Ms. Granholm and Mr. Bonior were to be Detroit’s contacts with the Obama transition. Yet people familiar with the matter say that beyond some e-mail discussions and conference calls, their input hasn’t been sought.

You can attribute it to the “power vacuum,” or you can blame the car companies poor PR. But at bottom, the notion of providing billions and billions — maybe as much as $125 billion would be needed – to failing companies with little hope of salvation (as least two of the three) simply isn’t palatable. Sometimes an idea is too dumb, even for Congress.

Next up is the House hearings. We’ll see if the CEO’s do any better there.


Join the discussion…

Are you a subscriber? Log in to comment »

Not a subscriber? Join the discussion today, subscribe to Commentary »





Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor to our site, you are allowed 8 free articles this month.
This is your first of 8 free articles.

If you are already a digital subscriber, log in here »

Print subscriber? For free access to the website and iPad, register here »

To subscribe, click here to see our subscription offers »

Please note this is an advertisement skip this ad
Clearly, you have a passion for ideas.
Subscribe today for unlimited digital access to the publication that shapes the minds of the people who shape our world.
Get for just
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor, you are allowed 8 free articles.
This is your first article.
You have read of 8 free articles this month.
YOU HAVE READ 8 OF 8
FREE ARTICLES THIS MONTH.
for full access to
CommentaryMagazine.com
INCLUDES FULL ACCESS TO:
Digital subscriber?
Print subscriber? Get free access »
Call to subscribe: 1-800-829-6270
You can also subscribe
on your computer at
CommentaryMagazine.com.
LOG IN WITH YOUR
COMMENTARY MAGAZINE ID
Don't have a CommentaryMagazine.com log in?
CREATE A COMMENTARY
LOG IN ID
Enter you email address and password below. A confirmation email will be sent to the email address that you provide.