Bailing Out The Big 3?November 18th, 2008 at 3:21 pm by Kennan Oliphant under Turn to 2
Today, Treasury Secretary Hank Paulson told congressional members on Capitol Hill today that he opposes tapping a $700 billion taxpayer-funded bailout pool to help struggling U.S. automakers. Members of the house and the senate told the American people that money would be used to help bailout the mortgage industry by buying up all the toxic loans. Part of that money was to help free up the credit markets so banks could start lending again.
Republicans insist that any automaker bailout money instead should come from redirecting a $25 billion loan program approved by Congress in September to help the industry develop more fuel-efficient vehicles. The GOP would lift restrictions on that money to speed it to the carmakers. Democrats want to leave that money alone and give the industry an additional $25 billion from the financial bailout funds — for a total of $50 billion.
So what’s the solution here? Should the government give the “Big 3″ money? If so, should stipulations on any funding be in place? If not, should the car companies be forced to file bankruptcy, restructure, and hit the road again under new leadership? If these companies fail, we’re looking at possibly more than 2 million people out of a job. Employees at the OEM’s and their tier 1 and 2 suppliers will be devastated.
Can we take more bad news? Citigroup already announced layoffs of staggering proportions. When you hear 50,000 people will get the pink slip, it makes many people hold on to their short job rope a little tighter. Our lawmakers must decide what to do in a thoughtful and educated manner.
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