Bailout Watch 458: Obama Makes It Official: "We Will Provide Them Some Help"

by Robert Farago

Published: March 26th, 2009

bailout watch 458 obama makes it official we will provide them some help

“Some help” equals $22 billion of additional federal “loans” for Chrysler and GM. The Detroit News reports that President Obama has joined his Presidential Task Force on Autos (PTFOA) in signaling that his administration ain’t gonna enforce the “get your NSFW together by March 31” conditions for Motown’s second seating at the federal bailout buffet. Apparently, those conditions are so last year. The Chief Executive and his minions are more concerned (i.e., only concerned) with the NEW conditions. “If they’re not willing to make the changes and the restructurings that are necessary, then I’m not willing to have taxpayer money chase after bad money. And so a lot of it’s going to depend on their willingness to make some pretty drastic changes.” That’s because “there’s been a lot of mismanagement of the auto industry over the last several years. But they’ve all been replaced now.” Just kidding. About the replacement bit. “Everybody is going to have to recognize that the current model, economic model of the U.S. auto industry is unsustainable.” How about we start with somebody and work our way forward from there?

Robert Farago

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4 of 35 comments

HEATHROI on Mar 27, 2009

Why get mad at something you cannot do anything about. Our money is going to bailout the big 2.8, and that is all there is to it. Not being a citizen, I didn't have to take civics class so I only vaguely remember something significant about 1776. Maybe something to do with high flown concepts. Probably not important.

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Kevin on Mar 27, 2009
“Everybody is going to have to recognize that the current model, economic model of the U.S. auto industry is unsustainable.” Thank God, Obama's seen the light and he's going to bust the unions!

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Bmcreider on Mar 27, 2009

Kevin, Obama will never, I repeat, never, do anything harmful to the unions. Ever.

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U mad scientist on Mar 27, 2009
The money you invest doesn`t matter, if it is not invested wisely. Will Gm become more competetive after the huge loans they receive? How do they plan to improve reliability, fit and finish, model diversity? How much of the loan will go into actual R&D? Will Gm reduce model overhaul cycles? these are the questions you should ask. The current money spent is not about "investment", it's economic welfare to prevent a deflationary spiral due in part to unemployment. It's a short term bandaid to prevent the collapse of capitalism as we know it in this country. This is a dichotomy that must be understood before even discussing the issue or it's pointless misinformed bitching. Of course to that effect, a temporary nationalization would be much more efficient, just like for the banking system, but the country (ref: this thread) is not ready for the N word.

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