WASHINGTON, Dec. 10, 2008
White House, Dems Near Auto Bailout Deal
Congress Could Vote As Early As Wednesday On Plan To Give $15 Billion In Loans To Failing Industry
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Play CBS Video Video Auto Bailout Deal In The Works Capitol Hill is still negotiating a plan to save the Big Three. GM has said if it doesn't get all the money it needs, the company will go under. Sharyl Attkisson reports.
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Video GM Welcomes Gov't Regulation Robert Lutz from GM tells Harry Smith that the government will have to fix the economy before the auto industry can recover, and Ron Gettelfinger from UAW talks about concessions.
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Video Auto Makers To Get Deal A bridge loan with conditions is expected to help auto makers get through the holidays until a more substantial plan can be created, reports Sharyl Attkisson.
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House Speaker Nancy Pelosi of Calif., center, flanked by Rep. John Larson, D-Conn., left, and House Majority Leader Steny Hoyer of Md., addresses the media on Capitol Hill in Washington, Tuesday, Dec. 9, 2008, following a meeting on the economy. (AP Photo/Lawrence Jackson)
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In-Depth Q&A: Big Three Bailout? Why Detroit's automakers might get a rescue package
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Fast Facts GM Moves General Motors announces cuts to salaried jobs, production, dividend to raise turnaround cash.
Officials struck an agreement in principle on the measure Tuesday and hoped to finalize it and schedule swift House and Senate votes as early as Wednesday. Money could be disbursed within days to cash-starved General Motors Corp. and Chrysler LLC, while Ford Motor Co. - which has said it has enough liquidity to stay afloat - would be eligible for federal aid.
All three would have to negotiate with labor unions, creditors and others and submit blueprints by March 31 to an industry czar named by President George W. Bush showing how they would restructure to ensure their survival. If not, the emergency loans would be revoked, the companies cut off from further federal help, and the government overseer could order his own overhaul, including forcing them into bankruptcy.
After days of marathon negotiations over the plan, congressional aides and White House officials were still fine-tuning legislative details of the agreement. It could face substantial obstacles from Republican lawmakers, who remained skeptical of the White House-negotiated plan.
A group of conservatives led by Sen. John Ensign, R-Nev., who has threatened to block the measure, planned a midday news conference Wednesday.
As the measure took shape Tuesday, Sen. Mitch McConnell, R-Ky., said he was concerned that Democrats were proposing a package that "fails to require the kind of serious reform that will ensure long-term viability for struggling automobile companies."
With their approach, "we open the door to unlimited federal subsidies in the future," McConnell said.
Getting 60 votes for an agreement, with many senators expected to be absent for the emergency, post-election debate, could be tricky.
Sen. Carl Levin, D-Mich., an ally of the auto industry, said, "This gets us to the 20-yard line, but getting over the goal line will take a major effort, particularly in the Senate."
He called for Bush and President-elect Barack Obama to lobby personally for the auto bailout.
Regardless, the bailout may provide just a fraction of what the struggling auto industry ultimately needs.
"[The bailout] would certainly get us well into the next administration, at which point we can discuss what it's really going to take," General Motors vice chairman Robert Lutz told CBS' The Early Show.
© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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- One thing I did do to try to prevent jobs ging overseas was to vote for a Senator back in the 1970s who was trying to pass a plant closing law that would tax the *** out of any company moving overseas, thus removing their financial incentive. I still support the same.
Posted by Mcliar at 10:23 AM : Dec 10, 2008
Well, thank GOODNESS you did that. It worked SO WELL.
If you didn''t to that, my goodness I can''t imagine what might have happened. We could have "free trade" and globalization, and our industries might leave the country left and right.
Oh, wait. That IS what happened.
OK, what did you do that WORKED???
I still say tariffs are the answer. - Reply to this comment
- dont answer this with a question or a lame insult...answer it!! if you dont, you will prove my point...it is up to you.. go
Posted by jamesm12341 at 11:37 AM : Dec 10, 2008
In other words, they should not respond as YOU do? You''re a typical ''do as I say, not as I do'' poster. You never have ANYTHING but insults to offer, yet you think you are above everyone else.
What a sad, pathetic little boy you are, Jimmy. - Reply to this comment
- I already answered that for you a long time ago jimmyboy - Do you have ADD? Forget things that quickly? They should go back to college, get their MBA and destroy companies, walking away with millions of dollars in serverance. Just like the current Upper management does.
Posted by takebackusa at 11:36 AM : Dec 10, 2008
Correction - should be ''severance'' not "serverance" - Reply to this comment
- what should the autoworkder do once they are laid off?
Posted by jamesm12341 at 11:32 AM : Dec 10, 2008
I already answered that for you a long time ago jimmyboy - Do you have ADD? Forget things that quickly? They should go back to college, get their MBA and destroy companies, walking away with millions of dollars in serverance. Just like the current Upper management does. - Reply to this comment
- point is, that with his lack of brainpower, he needs to quit acting like he is an expert on serious matters on here.
Posted by jamesm12341 at 11:29 AM : Dec 10, 2008
Right back at you jimmyboy. What makes you think you are more intelligent than he is? Posting serious matters? I don''t see you posting anything except snide remarks and insults. Again, the point being, if you measure success and intelligence by how much money one makes, Paris is WAY above you! - Reply to this comment
- Little jimmy is SO UNEDUCATED, and KNOWS SO LITTLE about the workforce, that he believes that your "pay rate", is dependent on "your age".
LOL!!!
Posted by IamHungry68 at 11:25 AM : Dec 10, 2008
Jimmy is obviously very young. He has this craving for attention. That''s why he comes here. He doesn''t get enough from his parents. He has no idea what reality is in the real world. - Reply to this comment
- paris hilton isnt on here posting like she is an expert on iraq, politics , the economy like hungry does. point being, someone who is 40 and only has the brainpower to make 41k a year shouldnt be posting about anything that requires a brain
Posted by jamesm12341 at 11:22 AM : Dec 10, 2008
Point is jimmyboy - why are you so obsessed with what his salary is? You have mentioned it several times. How does it affect your life? Are you financially supporting him? Is he asking for Government bailouts with your tax dollars? - Reply to this comment
- its a slow process for hungry....what i am about to tell you is true...i know that you will think i am making it up but it is true....here we go....hungry is 40 years old and....its so funny it is hard to type...he is 40 years old and....only makes 41k a year!! i am not making that up!!
Posted by jamesm12341 at 11:11 AM : Dec 10, 2008
And that makes you superior to him, right jimmyboy? What a delicate little ego you have. Such a needy child. So under your logic, Paris Hilton is superior to you. I''m sure she has a lot more money than you do or will ever have. - Reply to this comment
- The continued political games played by our elected representatives is absolutely ridiculous.
This money will be gone BEFORE the Big 3 even gets together a PLAN to PLAN changes!!!!
The real ANSWER is Chapter 11 - REAL protection from creditors, VOIDING contractual arrangements that are inappropriate and overbearing, and places direct oversight of operations going forward.
This "LOAN" keeps all OBLIGATIONS in play - which means NOTHING changes without negotiation/agreement - which means a lot of time - bye bye $15B.
The nonsensical concept that somehow the american people would not purchase cars if the companies are in bankruptcy, but will even though this "LOAN" process shows they are holding on by a thread slays me.
IF, I want to be sure my car company will exist for the next 5 years to assure my warranty is covered and/or availablity of parts - I wouldn''t go ANYWHERE NEAR the Big 3 in either senerio. It''s all smoke and mirrors to get the gov''t to fork over huge dollars so they can do business as usual.
EVERY MEMBER of Congress should immediately resign if they vote yes to approve this "LOAN" and Chrysler and/or GM come back looking for more because their "CONCEPT" didn''t work - how''s that for creating a culture of responsibility? - Reply to this comment
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Actually, I''''m with you. Let free markets and capitalism rule. The government has no business interfering. If something can be done cheaper in China or India, send that job to China or India. As long as you have a college degree, you will never be unemployed.
Posted by saraplumber
According to the Bureau of Labor, the unemployment rate for those older than 25 and with a bachelors degree or higher, stands at 3.1% as of November. That is an increase over the 2% recorded in Nov 2007. - Reply to this comment
- I''ve been reading and keeping up with this auto industry loan from our government for the past several days now! I believe, also, that there need to be some rules and regulations governing this $15 billion loan! Speaking for myself, when I became a homeowner, I had to make myself out a budget and stick to it! This means that I couldn''t just go around spending money on whatever I wanted to! I had to have a lot of self-discipline! I agree with the Democrats that say for the loan to go through, there needs to be a plan set up to pay back the taxpayers and the government first! Also, those CEO''s DO NEED TO GET RID OF THEIR 3 CORPORATE JETS!!! How ridiculous is that? The Auto Loan Makers flying to Washington in their corporate jets and asking for a $15 loan!! Also, they, too, need to tighten their belts, like the rest of us in this economy are having to do!!!
Sincerely,
Speedyfj1 - Reply to this comment
- if i were a walmart greeter, it would be because that is what i wanted to be. i am not however. but who cares if i were. i wouldnt blame anybody else but myself if i was a walmart greeter and it was something i didnt want to be. autoworkers chose their lot in life....they might have chosen it because they like to build cars, they might have chosen it because they arent educated enough for anything else....they chose it...if it goes away...it is up to them to train for something else...life isnt fair...they need to move on
Posted by jamesm12341 at 10:39 AM : Dec 10, 2008
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Actually, I''m with you. Let free markets and capitalism rule. The government has no business interfering. If something can be done cheaper in China or India, send that job to China or India. As long as you have a college degree, you will never be unemployed. - Reply to this comment
- this question is for anyone:
what should the smart autoworker do once they are laid off?
Posted by jamesm12341 at 10:29 AM : Dec 10, 2008
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Take grammar lessons.
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Posted by saraplumber at 10:36 AM : Dec 10, 2008
then what? lame attempts at bashing me is not going to do them any good
Posted by jamesm12341 at 10:40 AM : Dec 10, 2008
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Their education would be light years ahead of yours. And if you''re doing so well, then, for them, the sky would be the limit. - Reply to this comment
- if i am not the educated one...how come i am not blaming government for this and for that?
Posted by jamesm12341 at 10:41 AM : Dec 10, 2008
When have I ever blamed the government for my failures in life? I accept responsibilty for my own decisions. - Reply to this comment
- Take grammar lessons.
Posted by saraplumber at 10:36 AM : Dec 10, 2008
Ah yes, so they can all learn to talk like Jimmyboy''s "highly educated" idol - Sarah Palin.
Ya know, like, I''m gonna like, go back to school and get like, a 4 year degree, in like 6 years. Don''tcha know, like You Betcha ! - Reply to this comment
- this question is for anyone:
what should the smart autoworker do once they are laid off?
Posted by jamesm12341 at 10:29 AM : Dec 10, 2008
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Take grammar lessons. - Reply to this comment
- The government doesn''t control my life Jimmyboy. I have always supported myself and my family with no bailout from the government. What makes you think I''m a lib? What is a lib to you? Anyone that doesn''t agree with you?
- Reply to this comment
- so saraplumber says all an autoworker is qualified for is walmart greeter and takebackusa said the autoworkers would be failures even if they were educated...so we want to invest in their future ....because?
Posted by jamesm12341 at 10:21 AM : Dec 10, 2008
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Because the world needs Walmart greeters. Or are you too afraid of the competition? - Reply to this comment
- what do you mean you dont? you both posted it!! get over your obsession over CEOs!! you can''''t control that!!
Posted by jamesm12341 at 10:27 AM : Dec 10, 2008
Get over your obsession with unions. Do they control your life? - Reply to this comment
- i can be any profession of my choosing....it is my choice...if i dont like it or the pay , i leave...i dont let the government or who is president dictate it to me like lib losers do. if the company shuts down, i dont sit around and gripe and blame, i look for another...if there is nothing in my field, i retrain for a different one. that way i dont rely on government.....get it?
Posted by jamesm12341 at 10:19 AM : Dec 10, 2008
AH, can''t answer the question huh jimmboy? Are you ashamed of what your profession is? - Reply to this comment
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