AUTO BAILOUT - BEHIND THE SCENES

Our Dear Leader, GM CEO.

I thought we might take a look at the series of events that occurred before Our Dear Leader took office, that led to the government takeover of the auto industry. Truth is a funny thing, it always floats back out somewhere. Here is a bit of truth that has been overlooked by nearly everyone.

The Wall Street Journal, November 11, 2008

President-elect Barack Obama met at the White House Monday with the man he will succeed in January, and pressed President George W. Bush to take immediate action to help stave off the collapse of the U.S. auto industry and to aid the economy more broadly

Mr. Obama's focus on the auto industry came as fellow Democrats on Capitol Hill started moving on their own to help Detroit gain access to federal rescue funds allocated for the financial sector

House Speaker Nancy Pelosi (D., Calif.) and Senate Majority Leader Harry Reid (D., Nev.) asked the administration to study whether it has the authority under current law to tap the $700 billion Wall Street bailout fund to aid Detroit, and if not, to tell Congress what action is needed.

http://online.wsj.com/article/SB122633055060013799.html

There was all that humiliating finger pointing by congress at the auto CEO's flying their plans to DC, the dog and pony show hearings. Forcing them to rewrite their plans, and then drive back in hybrids for show in December, it all made for good TV and sound bite material.

But it sure looks to me like Our Dear Leader, and the Democratic leaders of Congress, were already working together on beginning the bailout process, long before the hearings were concluded.

This would explain something that has bugged me ever since the hearings. And I bring up Bob Corker again. At the time, he seemed to be the only Senator with the any business sense at all. Probably because he himself was a very successful businessman. He was asking pointed questions, addressing real financial issues, and also the only member of congress to state the Unions would have to renegotiate their contracts to make any bailout feasible. He was also in favor of a structured bankruptcy, much like what eventually occured, only without the UAW taking ownership.

I do remember Nancy Pelosi stating that “Bankruptcy was not an option” for the auto industry.

So at the end of the hearings, when it was clear the UAW was going to make absolutely no concessions in order to try to help save the companies, it looked like the congressional hearings were for naught.

President Bush all along had said he was not for giving the industry any TARP money. And in fact, under the rules TARP was set up, it would not qualify for any TARP relief.

So I, like many Americans, were puzzled when President Bush suddenly reversed himself and handed out billions to the auto makers. They had not come up with a satisfactory plan for Congress. Congress itself seemed to not be on board with handing over billions. Senator Corker had pointed out that they would just keep coming back for more to no end. And unless the UAW was willing to work with them, all we would do is funnel billions into a giant money pit, with no end in sight.


And then you read the Wall Street Journal article. President Elect Obama was pushing President Bush to give them the bailout money, and all my favorite Democratic leaders were actively working at clearing the way for the money to be handed over.

And this was before the dog and pony show hearings were completed, when it looked clear that the auto companies had no clear plan at all, besides getting more money.

So Obama, Pelosi, and Reid were all putting pressure on Bush to hand over the money. Billions later, bankruptcy is an option, and the UAW is now part owner with government backing.

So the next time Our Dear Leader says he inherited this mess, just remember and the Democratic leadership had an active role in the creation of it, and knew full well what he was getting when he took office. Actually, if I was a conspiracy nut, I might think that the Union takeover was what Mr Obama had planned all along.

Maybe I'll look into Barney Frank's role in the housing collapse.