Bailout Watch 74: TTAC Called It: Bush Signs Bill Authoring $25b Motown Loans
Let’s face it: there was about as much chance of President Bush vetoing the $25b auto industry bailout package as, well, Bush vetoing anything. The guy has literally set a 200 year record for fewest vetoes. Then again, he may not have even known or cared that $7.5b of the $634b spending bill he signed yesterday was even for auto industry loans. Not to disparage the guy or anything, but blowing over $600b in a single sitting has got to be a little disorienting. Besides, there’s evidence that Bush’s advisers may at least have been split on the auto loans; a written statement released by the White House fails to make any mention of the auto loan provisions. But Bush was essentially signing a bailout of a different kind last night. The government needed the spending bill passed in order to keep the lights on in DC, and industry lobbyists were simply smart enough to get there handout tacked on to that must-pass legislation. It’s called the Potomac Shuffle, and it’s one of the few games Detroit plays with the best. In fact, lobbyists and well-owned representatives are already calling game-on for round two. The Detroit News reports that “Michigan lawmakers plan to return next year to seek another $25 billion in loans for 2009 and 2010, and more flexibility in how the funds can be used.” As we’ve been saying from the get go, once DC invests in Detroit it will have little choice but to continue feeding the yawning black hole that was once our domestic auto industry. In this sad story, the end is only the beginning.
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"industry lobbyists were simply smart enough to get [s]there[/s] their handout tacked on to that must-pass legislation."
What ever happen to the line item Veto? This is disgusting paying for their incompetence, and paying and paying and paying. Wish I had someone to lobby for me and tack on a few million or a billion to improve my tooling. Guess I'm not enough of a tool to get that kind of help.
We are in deep doo doo, that is for sure