Bailout Watch 4: McCain on Detroit Bailout– "I'm Afraid Not"

Robert Farago
by Robert Farago
bailout watch 4 mccain on detroit bailout i m afraid not

Whatever else you can say about White House hopeful John McCain– and you're going to say lots– the guy's got a set. Followers of our E85 coverage will recall that McCain was the only candidate to come out against ethanol-related subsidies for corn farmers before the Iowa primary. While in Iowa. Yesterday, the Arizona senator toured Lordstown (home of "high mileage Chevrolet Cobalt and Pontiac G5 economy cars"), and then came out against a federal 911 for any of Detroit's ailing automakers. Speaking at a town hall meeting, McCain was all about putting government dollars into "research" into alt propulsion (a $300m prize for anyone who can guess how much money he'd send Motown's way). But a bailout? Automotive News [sub] provides the money shot: "A bailout, I don't think works." In fact, The Detroit News quotes McCain's antipathy to bailouts in general. "Frankly I just don't see a scenario where the federal government would come in and bail out any industry in America today." Over to you, Barack.

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  • Hwyhobo Hwyhobo on Jun 29, 2008

    mel23, I understand your concerns, although I may not share all of them. What can I say, consider the alternative. When was the last election you actually wanted to vote FOR a candidate, not AGAINST? It's been too long.

  • Jerome10 Jerome10 on Jun 30, 2008

    Meanwhile the Fed bails out banks, lending institutions, and home-owners. If they all get a piece of the pie for STUPID decisions, why shouldn't domestic automakers get the same benefits for their stupid decisions? My opinion, nobody should get bailed out. Or if some do, others should too. If we can reason a Bear Stearns BO was necessary to save the economy, having GM go under would be far worse. As a side rant....Why is it that when companies and people do stupid crap it suddenly becomes the government's responsibility to bail them out? Its total BS. Those of us who plan, don't take ridiculous ARMs, don't max out credit, drive fuel efficient cars all give up "luxuries" because we know we must be able to pay for it. Meanwhile people buying houses they can't afford drive up the costs of a home so high those on fixed mortgages suddenly cannot afford a good home in their price range and settle for less. Few years later, they're in their more modest home that is now worth less than what they paid for it, their employment is in jeopardy, and then they have to watch the government bail out the idiots with THEIR tax money. Tell me again why it pays to be "smart" with your money? Even when you are, you are a small small minority and doing the right thing has no chance against the rest of this monster economy. Bailouts, mortgage forgivenss, allowing re-fi's when they specifically bought ARMs, extending unemployment benefits.... it all caters to those who are STUPID. Meanwhile the rest of us get screwed anyway along with everyone else. I'm all for helping people when they need a little pick-me-up. Food stamps are a good thing. Unemployment benefits are a good thing. Welfare is a good thing. To a point. But I'm sick of what has become almost a "safety net" for Americans. It makes it too easy to know the government will save me. If I get into trouble, I know the govt will extend my unemployment or give me a $600 check or allow me to negotiate a better mortgage....and on and on. Drives me absolutely bonkers.

  • Hwyhobo Hwyhobo on Jun 30, 2008

    Jerome10, would it help if I agreed with everything you said? Probably not, but I will anyway. ;)

  • Jkross22 Jkross22 on Jun 30, 2008

    The only thing I like less than McCain's condescending tone is Obama's clear lack of judgement of people he keeps close to him. But credit where credit is due: Johnny M. got this one right. The government's job is not to bail out industry. The early 80's Chrysler example is interesting. What would have happened had Chrysler not been given loan guarantees and allowed to go bankrupt? Lot's of people would have been hurt, but it would have been a wake up call to a lot of people in Detroit and those that support Detroit to divest their business. Maybe it would have sent the right message to GM and Ford that they shouldn't be expecting a bailout. To those that support a bailout, let's not forget where that money comes from - you and me. I don't want good money chasing after bad, and unfortunately, that's what would occur.