socialize_me
12-11-2008, 12:38 PM
WASHINGTON — The prospects of a $14 billion government rescue of the American auto industry seemed to vaporize Thursday morning as the Senate Republican leader, Mitch McConnell of Kentucky, spoke out forcefully against the bill, effectively dooming its chances despite the urgings of the White House.
In a speech on the Senate floor, Mr. McConnell said he and other Republicans had drawn a clear distinction between the Treasury’s $700 billion economic stabilization, which they helped pass in October, and the proposal to aid the American automakers, which he said raised questions about which industries or individuals deserve help.
“A lot of struggling Americans are wondering where their bailout is,” Mr. McConnell declared. Although Mr. McConnell voiced support of an alternative plan that was developed by Senator Bob Corker, Republican of Tennessee, it seemed unlikely that there was any possibility of compromise at this late point in the year, although some Congressional aides still expressed hope and said talks would continue.
The House approved the $14 billion plan, negotiated by Congressional Democrats and the White House, on Wednesday night. It would grant emergency short-term loans to General Motors and Chrysler and require the companies to submit to broad government oversight directed by a so-called car czar appointed by President Bush.
Democrats have indicated that the vote on the auto rescue plan was almost certainly the last major action by the House in this Congress, and they have suggested that if Senate Republicans balk, the Bush administration may have no choice but to find alternative ways to prevent G.M. and Chrysler from financial collapse.
The Senate majority leader, Harry Reid of Nevada, challenged Republican senators earlier Thursday to propose an alternative to the measure approved by the House and to allow swift votes on the competing plans. Mr. McConnell answered that challenge a short while later, saying the Republicans would oppose the White House plan.
Among other things, the alternate plan offered by Mr. Corker calls for giving the holders of bonds issued by the auto companies 30 cents on the dollar to ease the companies’ debt burden; immediately bringing workers’ wages in line with foreign companies like Nissan and Volkswagen; and forcing the United Automobile Workers to eliminate payments to workers after their jobs have been eliminated.
The House vote on Wednesday was 237 to 170, mostly along party lines. Voting in favor were 205 Democrats joined by 32 Republicans mainly from states heavily dependent on the auto industry; 150 Republicans and 20 Democrats voted against it.
But the more crucial test is in the Senate, as Thursday’s developments demonstrated. Senate Republicans on Wednesday rejected an appeal by the White House chief of staff, Joshua B. Bolten, who urged them to support the bill. Instead, some Republicans have called for the automakers to seek bankruptcy; others said there should be steeper concessions by labor and creditors.
For procedural reasons the measure needs 60 votes to advance in the Senate, where Democrats currently hold a 50 to 49 majority, including two independents. There is one vacancy because of the resignation of President-elect Barack Obama.
Because of the procedural hurdles, Mr. Reid could not force a vote on the auto measures on Thursday. If the Republicans refuse to allow immediate votes, he has laid the groundwork for a vote Friday morning that would end the discussion if Republicans refused to support the bill.
Mr. Reid in his floor speech told Republicans to put forward a plan, if they thought they could do better.
“I think it’s only fair, if the minority, the Republicans, want to have a better bill, then they should offer an alternative,” Mr. Reid wrote. “And I invite them to do that. The House passed a bill last night.”
“It would be my suggestion then we perhaps have a vote on the substitute or the alternative that the Republicans would put forward, vote on the House bill, vote on the Senate bill,” he continued. “If there’s no agreement that can be reached on that, we have danced this tune long enough.”
The White House renewed its efforts on Thursday to promote a rescue plan. “We believe that the economy is in such a weakened state right now that adding another possible loss of one million jobs is just something our economy cannot sustain at the moment,” Dana Perino, President Bush’s chief spokeswoman, said at a news briefing.
Mr. Obama sounded a similar theme.
“I understand people’s anger and frustration at the situation our auto companies find themselves in today,” Mr. Obama said at a news conference in Chicago. “I raised concerns about the health of our auto industry a year and a half ago, when I spoke to industry leaders in Detroit. I urged them to act quickly to adopt new technologies and a new business approach that would help them stay competitive in these changing times. And while they’ve failed to move quickly enough toward these goals, at this moment of great challenge for our economy, we cannot simply stand by and watch this industry collapse. Doing so would lead to a devastating ripple effect throughout our economy.”
General Motors and Chrysler have said they cannot survive much longer without the federal aid, while the Ford Motor Company, which is in better shape than its competitors, has said it will not seek the emergency loans.
As an amendment to the auto rescue plan, the House approved a measure that would require banks receiving assistance from the Treasury’s $700 billion economic stabilization program to detail new lending activity each quarter.
Didn't like 73 of these d-bags vote for the $850 billion two months ago?? Apparently $14 billion would break the bank.
In a speech on the Senate floor, Mr. McConnell said he and other Republicans had drawn a clear distinction between the Treasury’s $700 billion economic stabilization, which they helped pass in October, and the proposal to aid the American automakers, which he said raised questions about which industries or individuals deserve help.
“A lot of struggling Americans are wondering where their bailout is,” Mr. McConnell declared. Although Mr. McConnell voiced support of an alternative plan that was developed by Senator Bob Corker, Republican of Tennessee, it seemed unlikely that there was any possibility of compromise at this late point in the year, although some Congressional aides still expressed hope and said talks would continue.
The House approved the $14 billion plan, negotiated by Congressional Democrats and the White House, on Wednesday night. It would grant emergency short-term loans to General Motors and Chrysler and require the companies to submit to broad government oversight directed by a so-called car czar appointed by President Bush.
Democrats have indicated that the vote on the auto rescue plan was almost certainly the last major action by the House in this Congress, and they have suggested that if Senate Republicans balk, the Bush administration may have no choice but to find alternative ways to prevent G.M. and Chrysler from financial collapse.
The Senate majority leader, Harry Reid of Nevada, challenged Republican senators earlier Thursday to propose an alternative to the measure approved by the House and to allow swift votes on the competing plans. Mr. McConnell answered that challenge a short while later, saying the Republicans would oppose the White House plan.
Among other things, the alternate plan offered by Mr. Corker calls for giving the holders of bonds issued by the auto companies 30 cents on the dollar to ease the companies’ debt burden; immediately bringing workers’ wages in line with foreign companies like Nissan and Volkswagen; and forcing the United Automobile Workers to eliminate payments to workers after their jobs have been eliminated.
The House vote on Wednesday was 237 to 170, mostly along party lines. Voting in favor were 205 Democrats joined by 32 Republicans mainly from states heavily dependent on the auto industry; 150 Republicans and 20 Democrats voted against it.
But the more crucial test is in the Senate, as Thursday’s developments demonstrated. Senate Republicans on Wednesday rejected an appeal by the White House chief of staff, Joshua B. Bolten, who urged them to support the bill. Instead, some Republicans have called for the automakers to seek bankruptcy; others said there should be steeper concessions by labor and creditors.
For procedural reasons the measure needs 60 votes to advance in the Senate, where Democrats currently hold a 50 to 49 majority, including two independents. There is one vacancy because of the resignation of President-elect Barack Obama.
Because of the procedural hurdles, Mr. Reid could not force a vote on the auto measures on Thursday. If the Republicans refuse to allow immediate votes, he has laid the groundwork for a vote Friday morning that would end the discussion if Republicans refused to support the bill.
Mr. Reid in his floor speech told Republicans to put forward a plan, if they thought they could do better.
“I think it’s only fair, if the minority, the Republicans, want to have a better bill, then they should offer an alternative,” Mr. Reid wrote. “And I invite them to do that. The House passed a bill last night.”
“It would be my suggestion then we perhaps have a vote on the substitute or the alternative that the Republicans would put forward, vote on the House bill, vote on the Senate bill,” he continued. “If there’s no agreement that can be reached on that, we have danced this tune long enough.”
The White House renewed its efforts on Thursday to promote a rescue plan. “We believe that the economy is in such a weakened state right now that adding another possible loss of one million jobs is just something our economy cannot sustain at the moment,” Dana Perino, President Bush’s chief spokeswoman, said at a news briefing.
Mr. Obama sounded a similar theme.
“I understand people’s anger and frustration at the situation our auto companies find themselves in today,” Mr. Obama said at a news conference in Chicago. “I raised concerns about the health of our auto industry a year and a half ago, when I spoke to industry leaders in Detroit. I urged them to act quickly to adopt new technologies and a new business approach that would help them stay competitive in these changing times. And while they’ve failed to move quickly enough toward these goals, at this moment of great challenge for our economy, we cannot simply stand by and watch this industry collapse. Doing so would lead to a devastating ripple effect throughout our economy.”
General Motors and Chrysler have said they cannot survive much longer without the federal aid, while the Ford Motor Company, which is in better shape than its competitors, has said it will not seek the emergency loans.
As an amendment to the auto rescue plan, the House approved a measure that would require banks receiving assistance from the Treasury’s $700 billion economic stabilization program to detail new lending activity each quarter.
Didn't like 73 of these d-bags vote for the $850 billion two months ago?? Apparently $14 billion would break the bank.