Pelosi: No Auto Aid Without Accountability

Says Big Three Must Come Up With Austerity Plan Before Congress Will OK Any Bailout Package

(CBS)  House Speaker Nancy Pelosi said that accountability and austerity are required of the auto industry if they are to receive any public funds to help them in their time of crisis.

"The U.S. tax payer is not willing, nor are the representatives in Congress going to vote for an infusion of cash in the companies, so that these CEOs can be amply rewarded for their lack of success," said Pelosi, D-Calif., on CBS' Face The Nation.

"Senator Reid and I sent a letter at the end of this week to the CEOs, to say these are the kinds of things we'd like to see in a plan; austerity, in terms of dividends and bonuses and compensation and the rest, for sure, on the one hand; and then, also, what are you doing to innovate? What are you doing to earn this money?

"For lack of success, you get amply rewarded? Something is wrong with this picture. But what we are saying to Detroit should be very good news to them, and that is, we want to be their partners to go forward. We have to subject everything to scrutiny."

Pelosi also spoke with host Bob Schieffer about the lack of confidence in the financial markets, which has led to a lack of confidence on Capitol Hill towards the Bush administration's handling of the $700 billion bailout package.

“We thought that this money was going to circulate credit, put credit out there so many more people could function in a business sense," Pelosi said. "And that doesn't seem to be happening. They tell us it will.

"We were very concerned about the fact that the legislation called very specifically for them to help with mortgage forbearance, to help people stay in their homes. They've done nothing on that score. They testified to that effect the next day in front of all of Congress, and I think they got the word that we want to see some results from this legislation.

"I think that Congress is going to demand some real accountability, I know they will, before we can proceed with other money," she said.

Also on the program, Austan Goolsbee, senior financial advisor for Barack Obama, said that the President-elect was going to come into office "with a bang" to get a handle on the economic crisis.

He cited Obama's picks for his key economic team, and his announcement yesterday of a plan to create 2.5 million jobs over the next two years, in infrastructure rebuilding, alternative energy and other investment areas.

But what about before January 20, 2009? "Some economists say we're in a pretty dangerous time here right now," said Schieffer.

"I think it is a dangerous time, it's hard to deny that," said Goolsbee (left). "I mean, we're looking in the face of a serious crisis. We're coming out of a legacy of this administration that I would characterize as waiting for crises to happen, not taking action to prevent them from happening. And now you're in this awkward constitutional phase, where we obviously have one president at a time.

"Maybe he and the president, George Bush, ought to come up with some sort of a joint thing that they might do between now and then, how does that strike you?" Schieffer asked.

"Well, it strikes me that we have repeatedly called on the administration to do things like a stimulus, but the president did not appear to be interested in doing that. So I don't know; in theory it could work, but Obama has a vision that he's going to carry out. And if the current administration wants to do that, we should do it, because the economy is really hurting."

But when it comes to Detroit's dire straits, Goolsbee said that, while "the thought of trying to liquidate the entire U.S. auto industry in the middle of this deep recession is quite harrowing, really, it's like the reverse of stimulus," he said a simple handout of $25 billion would not be appropriate.

"The government is not going to get in the business of giving companies an allowance," he told Schieffer. "That's totally improper and not what we need. If the government is going to serve as bridge financing, the way an ordinarily functioning credit market would, [companies] need to have a business plan.

"It seemed like it was the first they heard of it, 'What is your plan to restructure your companies?' They said, you know, 'We'll have to get back to you' - that was crazy.

"If they need a bridge, it's got to be a bridge to somewhere, not a bridge to nowhere."

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Read the full "Face the Nation" transcript here.

By CBSNews.com producer David Morgan.

[gaymale1]

This is the SECOND TIME for DODGE to ask the Gov. to bail them out ( while lying to the consumers , & building JUNK ). G.M. has been building inferior vehicles for years , with warrantees that have so many loop holes , there not worth the paper they are printed on . BOTH ARE OVER-DUE FOR FAILURE ; NO TAX PAYER MONEY FOR THEM .

[craigh9]

you use a airline ticket one time and throw it away it is not comparable to buying a car DUH


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Posted by prounion at 03:18 PM : Nov 24, 2008

It''s the same concept - if they believed that comapny would exist 6,8,10 months later when they were using the ticket - if they didn''t have faith they would buy from an airline not in bakruptcy. Please explain the confidence level of being in bankruptcy or getting a government bailout - NIETHER assures survival of the company - you have the same trust/lack of trust factor - DUH!

[assemblyofso]

If the unions and management are not willing to develop a plan that will give the public a quality product at a reasonable price, let the market take them down. Someone will come along to fill the need.

I am responsible for buying and maintaining a fleet of autos. I tried buying American and would probably have lost my job if I had not returned to Japanese autos.

[chloemontague]

If you want to laugh, watch this ..
www.youtube.com/watch?v=1cbUlW5MMHE

[chloemontague]

Your future is here - Charlotte Iserbyt Speaking At The Zombie Country Conference , watch her very insightful talk - www.youtube.com/watch?v=PYNSXJbdchc

[chloemontague]

Kenyan Ambassador ADMITS Obama born in KENYA !!

MIM recently called the Kenyan Embassy and learned some pretty interesting things about our President elect, Barack Obama

From ''Mike In The Morning'' radio show, it goes for just 19mins... quite entertaining. Obama is so reveled that Kenya had a Public Holiday!

Listen to this !!
http://tinyurl.com/69zlcp

[prounion]

There is no evidence to support that. Look at the airlines, when some were in bankruptcy still bought tickets in advance, they didn''''t think they would automatically collapse Posted by craigh9 at 01:13 PM : Nov 24, 2008

you use a airline ticket one time and throw it away it is not comparable to buying a car DUH

[netbs9]

On the news today

Toyota, Nissian had to lease 15 acres at a US port to store thousands of vehicles sales are plummeting for Japan Automakers here in the US now

It''s not just the US automakers sales that are down now

Buy American save America

Consumer Buying Guide - UAW Made Products

for complete list go to
http://www.uaw.org/uawmade/product2.cfm?catid=2

Appliances
Water Heaters
Company: Bradford White

Made by Local: 1002 Region: 1D

White-Westinghouse, Tappen, Gibson, Kelvinator and Fridgedaire brand washing machines, dryers and laundry centers
Company: Electrolux

Made by Local: 442 Region: 4

Home Repair & Building Products
Architectural flat glass residential & commercial
Company: Tulsa Glass

Made by Local: 1895 Region: 5

Fiberglass Insulation Products
Company: Certainteed Corp

Made by Local: 365 Region: 9A

Garage Doors & Steel Entry Doors
Company: Taylor Door

Made by Local: 1637 Region: 1D

Home Insulation; roll type
Company: John Mansville

Made by Local: 211 Region: 2B

Insulation, pipe insulation & fiberglass roofing material
Company: Johns Manville

Made by Local: 4444 Region: 2B

Pocket door frames and doors; hardware and track for pocket doors; complete assemblies; hardware for doors (up to 300 lbs.)
Company: L.E. Johnson

Made by Local: 428 Region: 3

Residential Storm Doors
Company: EMCO

Made by Local: 1672 Region: 4

[netbs9]

The UAW has a proud history of honoring our veterans. The International Unions Veteran Affairs Department is currently involved in building a home in Eaton Rapids, Michigan to be used by the Veterans of Foreign Wars National Home for Children. The duplex building will house two veteran families at a time as they rebuild and recuperate from difficult life situations. The funds for the home were raised by UAW locals across the country, while laid off members in the Lansing area have done the construction. The home is slated to open in the spring of 2006. With 25 single parent families on our waiting list, the UAW is meeting an important need for the children and families we serve nation wide, states Patrice Green, National Home Executive Director. Our organizations share the important mission of caring for veterans and their families. The VFW National Home for Children is ecstatic about the generosity of the UAW community.



Posted by itdfactsu at 12:36 PM : Nov 24, 2008

Makes a person wonder why the GOP is so anti union

[netbs9]

Where the hell is Citigroup''''s viability plan? Who''''s accountable at AIG? Our illustrious government''''s handing Citigroup ANOTHER blank check to the tune of $20 billion at lightning speed (on top of their first blank check of $25 billion, not to mention over $300 billion in loan guarantees), but the auto industry is left high and dry so far. We''''re willing to hand over the auto industry, some say the back bone of our manufacturing sector, to Asian companies without a backward glance. Don''''t be fooled: those "jobs" foreign companies are bringing to our country are lower paying, with fewer, if any, benefits. Some say that''''s what it takes to be competitive. Maybe so. But remember all you Ebenezer Scrooges out there, the cost of living in the north of the country is higher than in the south, where many of the foreign companies are setting up in high concentration. Plus the high-expertise, advanced engineering jobs and gleaned technological advances, not to mention PROFITS, are funneled to their home countries, not shared here.




Posted by AandEsMom at 12:44 PM : Nov 24, 2008

And the behind all this are Republicans like Bush/Paulson/Cheney