By on November 13, 2008

That’s the day that House Financial Services Committee Chairman Barney Frank, D-Mass, will introduce legislation that will change the rules on the previously approved $700b financial rescue package so that America’s ailing automakers can stick their snouts into the federal trough. Yes, that Barney Frank; the same congressman whose oversight of Fannie Mae and Freddie Mac lead to the relaxation of lending policies that pushed both quangos to the brink of extinction. (Not to mention Frank’s relationship with Fannie’s policy wonk Herbert Moss or campaign contributions from both organizations to the Congressman’s campaign.) Automotive News [sub] reports that it’s shootout at The OK Give ‘Em 25 Bil Corral.

“Treasury Secretary Henry Paulson today reiterated the Bush administration’s position that car companies are ineligible for the money because it is earmarked for financial institutions. But House Democrats intend to include language in an economic stimulus bill that would give automakers access to the bailout, said Hilarie Chambers, chief of staff to U.S. Rep. Sander Levin, D-Mich. Frank is drafting the measure at the direction of House Speaker Nancy Pelosi, D-Calif.” Yes, as the lame duck Congress can’t get the Republicans on board for a new, pre-Obama stimulus packagage, and Bush’s boys are digging their heels in (holding Congress to its original intent), it all comes down to this. And if that’s not enough excitement for you, Frank’s calling the Mayja Playas down to DC to testify the next day: Red Ink Rick (GM), Big Al (Ford), Boot ’em Bob (Chrysler) and Big Ron (UAW). We’ll get you the list of politicos asking questions ASAP.

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15 Comments on “Bailout Watch 176: Tuesday, Nov. 18th...”


  • avatar
    windswords

    This would be so much fun if we could all (virtually) watch this together while eating popcorn and slinging MST3k type comments at the participants (politicians and executives). Maybe someone could record it (if it’s on CSPAN) and put something like that up on You Tube?

  • avatar
    taxman100

    That is the problem with the last election – those corrupt, entrenched politicians in Washington think the last election was a mandate of support for socialism and dependency on Washington.

    It will get much much worse over the next two years.

  • avatar
    indi500fan

    @ taxman100:
    Some of those staunch capitalists over @ Cerberus will be looking for some gravy too….

  • avatar
    troonbop

    Let’s please not speak of barney frank’s relationships…

  • avatar
    RaysirX

    It’s the so-called “capitalists” (management and BOD) who have their hand out for gov’t dollars to protect them from the market and their own disastrous decisions.

    To hand over billions to the same guys who got us in this position is absolute lunacy. Maybe the American auto industry is too big to fail; but if that’s the case they get a bailout on the conditions that upper management and the BOD are all FIRED.

  • avatar
    brettc

    I wonder if any of the politicians involved in this know about the definition of insanity. Giving billions of dollars to the same idiots to continue doing business the same way they’ve been doing it for decades, while expecting completely different results is batshit insane.

    It seems to be pretty likely that this will happen, so I really hope there are conditions attached with nautical rope to all this taxpayer money. Otherwise we’ll just get an even more prolonged death of GM and Chrysler.

  • avatar
    Dr Lemming

    RF: “Yes, that Barney Frank. . . .”

    Do you really want to get into a debate about which party’s leadership has more fingerprints on the Fannie Mae fiasco?

    That’s cheap-shot journalism.

  • avatar
    Johnny Canada

    Cheap shot? Not even close.

    Even Canadians are hip to the fact that Barney Frank and Chris Dodd obstructed any attempts for oversight reform proposed by the President back in 2000.

  • avatar
    guyincognito

    Living in Mass, I got to hear all of Mr. Frank’s campaign commercials, and I can not for the life of me understand how or why this man became a politician much less was elected and now serves as the head of the House Financial Services Committee.

  • avatar
    Adub

    Surely nobody is claiming that it was Democrats who told Fannie and Freddie to consider welfare and unemployment payments as income?

    I’d be shocked, shocked!

  • avatar
    jkross22

    How dare anyone suggest Barney Frank conducted himself in any way other than with the utmost public interest at heart. That ‘D’ next to his name proves it.

    If you disagree, then you’re a bigot.

    His immense knowledge and foresight to lazily monitor Fred and Fan should do much good for the D2.5. UAW and D2.5 execs rejoice!

  • avatar
    jschaef481

    RaysirX: “It’s the so-called “capitalists” (management and BOD) who have their hand out for gov’t dollars…”

    Shoulder-to-shoulder with the “socialist” unions…from a socialist-leaning Congress.

    Why is it such a surprise that so-called capitalists would be asking the government for cash? Socialism tends to insulate established businesses from healthy, new competition. The barriers to market entry generally get more difficult to overcome due to compliance with ever-more byzantine governmental regulations and requirements created by such a system. And those in power maintain their position and wealth.

    Without government intervention, these capitalists are going to fail and lose their wealth and position. Too damned bad! I’m NOT crying for them. That is market economics. Let management and labor both suffer the consequences of their mistakes.

  • avatar
    Bunter1

    Johnny Canada- Thanks, but I think you are MORE aware.

    Some of the senators that fought hardest to stop this mess (Dole, Sununu) got voted out.

    America can only see and believe what the “holy tube” tells them. Anything that happened last year is so irrelevant.

    Bunter

  • avatar
    hltguy

    Hey November 18th is my birthday, so what do you say Barney ol’ pal, ol’ chum, I would consider it so very nice if you sent me a birthday card with a few bucks in it, say a billion or two? You know I will help spread the wealth, promise.
    Oh that part about me paying my bills on time, not on welfare, and being a business owner, don’t let those little technicalities stand in the way.
    Thank you in advance.

  • avatar
    Johnster

    windswords : This would be so much fun if we could all (virtually) watch this together while eating popcorn and slinging MST3k type comments at the participants (politicians and executives). Maybe someone could record it (if it’s on CSPAN) and put something like that up on You Tube?

    Or it could be like dinner theater.

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