Bailout Watch 111: NYT: Hold Motown's Feet to the Fire

Now that the deed is done, now that your elected representatives have funded the Department of Energy’s low-interest auto industry loan program, The New York Times is closing the barn door behind $25b worth of bolted horse. “There are other, perhaps more pressing demands on the public purse than merely helping out General Motors, Ford and Chrysler: guaranteeing all Americans access to affordable health care, improving the nation’s schools, mending the country’s threadbare social safety net to help unemployed workers. The list could go on.” More relevantly, the Grey Lady views Detroit’s designs on the cash with considerable consternation. “Moreover, while the money is ostensibly meant to further the cause of fuel efficiency, we fear Detroit’s automakers will be tempted to put it to other uses. The Department of Energy, which is in charge of writing detailed criteria for car companies to get the loans, should include a provision for strict oversight of the program to ensure that the money is not diverted to other purposes.” Seconded. But the Times does itself no favors when it characterizes The Big 2.8 as “the gas-guzzling trio from Michigan.” And while their “plea” for a little transplant teat-sucking makes perfect sense (at least in their world), it’s not likely to fall on receptive ears in Dearborn (‘natch) or Main Street. To wit: “If it ever tries to expand the program — as some members of Congress have suggested — a good target would be some of those Japanese-owned automakers in the United States that actually have a record of successfully investing in fuel-efficient cars.” Again, how about we give end users a tax credit and let the free market sort this shit out?