Why am I not seeing GM and Chrysler products at 50-75% off? I'd buy a fuel efficient car right now, but I'm not going to pay 30K for one.

What struck me about Bush's argument was that first he said, correctly IMO, that letting the auto companies go into bankruptcy right now would have catastrophic effects throughout the nation. But then he wants assurances that if they haven't solved the problems in 3-4 months, they must go through bankruptcy. Does he truly believe the economic crisis will be over then? Or is he just passing the catastrophy to Obama, while giving Rep Senators the excuse to block more assistance? Okay, the questions are rhetorical.

and if there's anybody who knows about failed companies, it's president arbusto.

It's not about Corker, et al. getting what they want; it's about saddling the incoming POTUS with an early decision that will pit pragmatism against the Democratic labor base.

If we require that workers get paid the same as Japanese plant assemblers, why not require that executives get paid the same as Japanese manufacturers execs? They won't like that I'm sure but it's a simple answer the the caterwalling that workers get paid too much...

Who cares what strings Bush puts on this deal? In 32 days and about 96 minutes, Obama will be President, and anything Bush does by Presidential decision or order, Obama can undo or modify in the same manner.

So let Bush attach whatever strings he wants. GM and the UAW can say, "sure, boss, whatever," and Obama can cut those strings on Jan. 21 if he's so inclined.

Too bad the financial bailout parameters did not contain limits on executive pay and the elimination of executive bonuses for companies that are NOT profitable. How does losing a company's money merit bonuses?

Until the time that boards of directors are no long comprised of wealthy, interlocked, toadies; boards will continue to reward others in their cliques and disregard their obligation to employees and the US of A.

So when do we get to the part where the Bush plan eviscerates the unions?

Celebrations are premature with this crowd.

h

You know I hate this bailout and a part of me just wants them to fail permanently. But I am not sure letting them die is going to do anyone any good. The ripple affects of this could be devastating and even more so because there isn't anything else in the economy that could cushion the blow.

This was a victory for the Dems. They made Bush use TARP funds to keep the automakers viable until Obama takes office.

The binding conditions are on management. The "targets" apply to labor. "Targets" mean nothing, they were face-saving devices for Bush. The GOP hates this move.

in a move that will make the GOP happy, renegotiate the contract with the United Auto Workers to make compensation packages more competitive with foreign manufacturers with plants in the U.S.

This general characterization keeps getting made, but everyone who brings up actual numbers shows that the workers in foreign-owned plants are already getting paid what workers in US owned plants get made or slightly more, so I get the impression that, spin about parity aside, what this really is is a provision to make it so that pay in unionized US-owned plants is less competitive with that in non-union foreign-owned plants.

"So, are Corker, Shelby, and DeMint getting what they wanted, by forcing American workers to get paid less?"

Why does the South still hate America? You lost the battle for legal slavery, and you still haven't forgiven America for making you a better people.Corker, Shelby( a face only a crook could love, with its crooked smile) and DeMint seem to think that if we can't have blacks as slaves, we can at least make auto workers BEG to receive contracted salaries and benefits and put them Yankee workers in their place.

On a sore note, now might be the proper time for the South to secceed form our great country.
As they keep crying, the country has moved away from their "values", with good reason that they are too blind and dumb to see, and we should let them go be the third world country they want to be while tearing this country apart with their
third world mind set. The South is the tail that is wagging the dog!

Win. Win. Win.

Good for Bush!
Good for Detroit!
Good for Opec!

With oil below $40, the market place will demand more of Detroit's famous SUVs @ 18 mpg.

This is tax money well spent...
I am feeling very rosy about the future of our country right now...

The immediate problem with the auto industry is the lack of consumer credit. It is just hard for consumers to secure credit right now. A lot of them can't secure credit in any event and if they can the cost to the consumer is too high.

Frankly, what Paulson has done with the first 350 billion in bailout money is creating more harm than good. When you are pointing fingers at people responsible for the problems in the auto industry, point a middle one at the current Treasury Secretary.

"Under ordinary circumstances, I would say [bankruptcy] is the price failed companies must pay," Bush said. But in light of the deep recession, "These are not ordinary circumstances.... In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.... If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers."

Who are you and what have you done with President Bush? And can you stick around for another month or so?

scott_m, you beat me to it, was about to make the same quip.

Bush obviously has a fear of having the worst ever legacy as a president. Apparently he has a 2-pronged approach.

(1) Lie about things he does not have control over (eg: Iraq & WMD)

(2) Use surprising common sense over things he HAS control over.

This seems to me the best possible outcome, based on a seriously overplayed hand by the Congressional Republicans (who seem not to have grasped yet that they lost massively in the last election). US auto manufacturers stay in business until a better administration and Congress are inaugurated, and a better bail-out can be devised. And this fuck you will be heard loud and clear in states like Michigan, Indiana, Ohio, and Pennsylvania. So 2010 will probably see more losses for Republicans in these states.

Thank you Larry Birnbaum for posting some sense here. This was a big victory for the Dems. It's just a bridge, but was according to Democratic terms. Let's enjoy this one.

You know I hate this bailout and a part of me just wants them to fail permanently. But I am not sure letting them die is going to do anyone any good.
Posted by: ET

Certainly not the estimated two million workers who owe their jobs either directly or indirectly to the auto industry. Letting these companies "fail permanently" was never an option, unless you're "not sure" that 20-percent unemployment is a bad idea

My question is why did bush do this? i certainly don't believe he cares about the greater good of the nation. Is this part of his concern about his legacy? Its hard to believe he thinks this will even minutely outweigh the many horrors of the last 8 years. The only other reason I can imagine is some deal with Obama to forgo certain investigations and/or prosecutions in return for cooperation on the economy. But that also seems highly unlikely to me.

Every one is wrong on this one so far.

The Loan to the Car Companies is a huge victory for Bob Corker.

Place getting Bush involved, GM is doomed.

So no "orderly bankruptcy" from W. Just as well -- that phrase evoked an old Robert Klein routine about air raid drills in schools in the '50s, and the teacher telling the pupils to make sure and get in line correctly, because "we want an orderly nuclear holocaust."

Bush isn't being more reasonable. He's preserving what little good his legacy will have. NOT having put 2-3 million people out of work will enhance his legacy. Too bad his legacy consists of little positive action. Any good at all comes from his failure to do more harm.