Bailout Watch 35: We Have a Deadline! And a Plan!

Automotive News [AN, sub] reports that “For automakers [that’s Ford, GM and Chrysler] to get access to up to $25 billion in low-interest loans included in the 2007 federal energy law, Congress must approve roughly $3.8 billion in new spending to cover default risk.” Bailout-wise, U.S. House of Reps Majority Leader Steny Hoyer (D-MD) is on the case. Maybe. “Hoyer could not say precisely when or if any proposal would come before lawmakers for a vote before they are scheduled to break at the end of September — possibly for the remainder of the year.” That’s crazy talk! But if you want hardcore insanity, wait ’til Friday, when GM CEO Rick Wagoner hustles to the Hill to bring out his begging bowl in front of a Senate Energy Summit. The Wall Street Journal previews Rick’s party line: “The auto makers and their Congressional supporters also will argue that they need funding to meet new fuel-economy standards imposed by Congress, and that the debt markets have broken down in the credit crisis, leaving them few other options.” The WSJ reveals that Congress has 15 days to do the deal before our reps piss-off. Even worse (for Detroit) not everyone’s on board. “The industry’s chance of getting help may have dimmed, however the government announced it will provide a plan to provide as much as $200 billion in new capital as part of a takeover of the country’s main providers of funds for home loans, Fannie Mae and Freddie Mac… Last week, Sen. Orrin Hatch (R., Utah) said he was concerned about the amount of money. ‘We don’t want our automobile industry to go down, but on the other hand, they’ve made a lot of bad choices.'” While I bet they get the bucks, methinks Rick’s cruising for a bruising.