Faced with hardening opposition from President George W. Bush and Republican members of Congress, Democratic leaders said it is unlikely that they would get a bailout for automakers passed in the upcoming lame-duck session. They are increasingly accepting the possibility that a rescue for the Detroit Three, along with economic-stimulus measures targeted to middle-class families and workers, would have to wait until the inauguration President-elect Barack Obama. The New York Times (13 Nov.)
Why is it that politicians seem do the right thing when they have nothing to lose?
...on the other hand, Obama has a lot to lose (political support from auto workers). He probably does not need their support really, but has the boy from Chicago already sold out? -
Faced with warnings that General Motors is on the verge of bankruptcy -- a shock that would echo through the entire U.S. economy -- President-elect Barack Obama is asking Congress for $50 billion to rescue the auto industry. Obama's plan includes creation of a czar or supervisory board to oversee the rescue. To have any chance of passage, said people familiar with the matter, the measure would need the support of President George W. Bush, who has opposed the idea of giving government money to automakers Bloomberg (13 Nov.)
Some say GM bankruptcy preferable to bailout: Some experts said a Chapter 11 bankruptcy filing by General Motors might be better for the company and the nation than a government bailout that is gaining support in Washington. They said the money might do nothing more than put off a transformation that GM must go through to become a profitable, competitive company again. One activist investor said he would rather see the money used to help GM workers and train them for new jobs. The New York Times (12 Nov.)
Well, heck - if even shareholders are saying that it should be allowed to go bankrupt, who are we to argue?
Let the company fail, and support the workers in retraining for new jobs. Now you're talking sense.