An AP story now claims:
With Congress gridlocked and the economy floundering, the Bush administration declared Friday it would step in to prevent the "precipitous collapse" of the U.S. auto industry and the disastrous loss of hundreds of thousands of jobs sure to follow.
The story states that no details regarding the size or duration on the Bush bailout plan have been finalized, but that it is likely that the funds will come from the TARP money set aside for the financial bailout.
Many posters here over the past couple of days have predicted such a scenario: Congress fails to pass a bailout, but Bush rides to the rescue with a White House plan. It has been pointed out that Democrats were in favor of using TARP funds from the beginning.
For discussion: Will this work? Will this end up being better or worse than a Congressional bailout? What concessions can we expect workers to agree to? Any concessions from management (ha!)? Will this save George W. Bush's legacy? Will anyone notice that Bush was originally against bailing out the automakers? GM and Chrysler are in the direst straits - will Ford be shut out?
UPDATE: Here's another new story, from Business Week:
"Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," said Treasury spokeswoman Brookly McLaughlin.
The Treasury Dept. has about $15 billion of uncommitted funds left from the first $350 billion round of the Troubled Assets Relief Program, or TARP, authorized by Congress. That means it could cover the immediate needs of the auto companies without having to go to Congress. GM has said it needs $4 billion this month to keep paying its bills, and $12 billion total to get through to March.
And another: The International Herald Tribune weighs in:
Referring to the carmakers, the White House statement said, "A precipitous collapse of this industry would have a severe impact on our economy. It would be irresponsible to further weaken and destabilize our economy at this time."
It sure would have been nice if Bush had learned what the word "irresponsible" meant before taking office 8 years ago. Seriously, is there anything he DIDN'T do to weaken and destabilize our economy?