As Harry Reid continues to struggle with no Republican support for a bailout of the big three an interesting Republican offer has been made. It appears that President Bush might be willing to sign off on a package that would convert the $25 billion dollar package voted for retooling the automakers operations to upgrade fuel standards if Congress simply waived off those provisions. In effect the President would approve of converting those funds dedicated to a specific purpose to some form of unrestricted aid to the big three. The Democrats have rejected this offer, as they continue to believe in retooling the industry.
I continue to believe that unrestricted aid to the big three will only delay the day of reckoning and will likely result in a large loss to the taxpayer. But were I for this proposal I would urge my Democratic colleagues to accept this Republican proposal, in light of the stated urgency of the financial condition of the big three. Then I would suggest filing another exact replica of the just altered bill in the new session of Congress, with a Democratic President and larger Democratic majorities. The logic is obvious, since the “green auto bill” can wait a bit longer, while the financial condition of the big three requires more immediate action. Politically it would place the Republicans on their back heels, and likely is the only way to get a bill out of the lame duck session. If Democrats believe that G.M. can wait until the new session then the above advice is, to quote Ron Ziegler, “inoperative”.
Bill Manzi.com 
Ah, your honor, I love the way you turn a phrase. I would translate your opening sentance as thus; That wonderful leader in the senate is being stymied by those nasty evil Republicans in turning out an absolutely wonderful bailout bill.
Some economics 101. If you bail out a huge company that is uncompetitive without fixing the structure of the business, it will spend the money then go out of business.
The American companies have structured them selves with a high labor rate. Otherwise the technologies and manufacturing process are the same all over the world.
The Democrats here are trying to mollify its union base (keep the votes) that has successfully negotiated itself into an untenable position.
It is not the job of any government entity to take my tax dollars and spend it to buy votes.
Another point; the Federal Government, in all its collective wisdom knows nothing of the automobile manufacturing business. Its interference will only result in another Fannie May, Freddie Mack fiasco.
Another thing that bothers me is where is the voices of the investors and the board of directors in all of this?
Last point: Do you honestly believe that if the government does nothing to bail out these companies that they will simply lock their doors and go home?
I think management and labor will sit down and hammer out the approx $30 hourly labor difference between the American made American cars and the American made foreign cars or else they will go out of business. Let then decide.
Jules
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I once again have to agree that an unrestricted bailout simply postpones the day of reckoning, especially for G.M. My point was entirely political, as I see an opening politically for Democrats to achieve what they want here by simply taking what is possible today and then refiling the bill they are reluctant to change in January. I still think the policy would be incorrect, but I can’t help but wear a political hat because an opening does exist. I do not disagree that without fundamental change in the business model this bailout is not a prudent use of taxpayer dollars.
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Your Honor,
Are you saying the Democratic Leadership is trying to mollify their union base and embarrass the GOP?
Jules.
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