Bailout Watch 156: Pelosi's Back Door Plan Emerges

Robert Farago
by Robert Farago
bailout watch 156 pelosis back door plan emerges

I’ve received a few emails upbriading the site for OCDing on the bailout story. My only defense: TTAC has covered this story for well over three years. We are the clear path through the blizzard of bailout B.S. being bandied about by bailout backers. While we glean our info from the usual suspects, our editorial eye is fixated on the details and implications that other outlets miss, ignore or bury. For example, this Automotive News [sub] story reveals the fact that the cappi di tutti cappi di automobili left their sit-down in Nancy Pelosi’s Washington office “through a hidden exit from the office suite of Senate Majority Leader Harry Reid sometime around 6:30 p.m. Security personnel kept reporters at a distance.” THIS is how OUR politicians spend OUR tax money? In closed-door meetings with a coven of craptastic carmakers? OK, no surprise, but it’s clear the important questions are not being answered– if only because the principles involved are literally sneaking away into the night. So, anyway, here’s the latest teat-sucking scenario…

“Aides who helped plan the meetings described a two-part request: An infusion of an unspecified amount of money from the Treasury or the Federal Reserve to get through, or “bridge,” the current economic crisis and $25 billion in new low-interest loans to fund retiree health-care benefits. The requests would be on top of $25 billion in low-interest loans approved in September so automakers and suppliers can retool to build vehicles that are more fuel efficient.” So $25b already allocated, $xb to stop them going out of business and $25b to keep them stopping from going out of business for a while longer. Does any of this make sense? I mean, really?

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4 of 19 comments
  • GS650G GS650G on Nov 07, 2008

    So now we know how the VEBA is going to be funded. Bastards. When it is OPM who cares what it costs. One thing is for sure, they don't care WHAT you think just shut up and pay more taxes for it. How can I afford a new Chevy Volt to save money on gas and clean the air when I am paying all these taxes?

  • HarveyBirdman HarveyBirdman on Nov 07, 2008

    I saw some video footage from the photo-op they had for this meeting before the press and public were booted out so the people's money could be handed out without restraint. I thought the really old guy in a polo sitting next to Pelosi was a harmless old UAW retiree the CEOs brought along to remind Congress that there's real people at stake here. However, it turns out it was just Rep. Dingell, as I learned after he addressed the cameras with something about how critical it is to save the auto industry. I guess in a representative democracy the people really get what they deserve.

  • Durishin Durishin on Nov 08, 2008

    I surely am no economist, but wouldn't it be better for these guys to go Chapter 11? I mean, the airlines do it - they don't go out of business - they restructure - whack the top management and start over. Isn't that what the American manufacturers really need to do? I mean, loans to a fixed cost structure (read union entitlements) that looses money can only continue to loose money. Right?

  • Dougjp Dougjp on Nov 08, 2008

    Right. It is just about that simple. dgduris you said it better than paragraphs could.