House Republicans manage to convert automaker bailout to bank profits
December 10th, 2008 • by David Zatz
A new House bill spearheaded by Republicans replaces $15 billion in direct government loans to automakers with a $14 billion loan insurance program to be partly funded by the automakers. This would presumably loosen credit to automakers while assigning much of the risk to the American taxpayers, and providing large profits to banks which would get high interest rates without risk.
Do I really need to voice an opinion? Is there anything these guys won’t do to divert tax money to their wealthy friends?
Welcome to the United States of JP Morgan.
…and now they’re apparently holding out for MORE. Or standing on principle …
… and yes, I do take back what I said about no oversight for the financial industry. Fannie Mae and Freddie Mac did have oversight committees and the Democrats did prevent action from being taken.
Yes, you’re exactly right. There were a couple key decision points in 03 and 05, as I recall, thet the excesses, the lack of sound business practices of Fannie and freddie, might have been reigned in. Barnie Frank and Chris Dodd were among those that blocked it. Other key decision points were Clinton and Bush actions to deregulate key aspects of the financial markets, taking away regs that existed since the panic of 1907. Fannie, Freddie, plus that deregulation, gave us this mess.
Common sense was thrown out the window in favor of policies designed to put everyone and their brother in a home, regardless of their financial ability; common sense regulation of a functioning capitalistic free market was thrown out the window in favor of casino style shell game capitalism.
We have got to get back to even keeled policies and regs, rather than what we have now–a pschizophrenic market that is deregulated in all the wrong ways at the same time as it is dominated by government controls and manipulation in all the wrong ways; and where the pols empty the treasury to benefit cronies in the big banks; and where the pols empty the treasury on bread and circus programs to manipulate the people.
The governor of Illinois is but an exaggerated emblem of what is wrong with our government and economy–the death of self restraint and virtue. Our founders knew that we could not remain free without holding to those kind of values. Repubs and demos need to ask what is best for their country, a la JFK, not merely what will get them more votes, or campaign contributions.
It is the greedy banks fault that the Big 3 can’t get loans. The financial market collapsed because of these risky loans of just paying intrest on homes. And the US government wasnt tough enough on this $700Billion bank bailout, they got ripped in AIG. 1 company gets $150Billion and still wants $400Million bonous, then why can’t FoMoCo, GM, ChryslerMotors get $150Billion and keep paying Wagoneer and Malauray millions of dollars each year? The bank big wigs flew in private jets, but were not criticized for it. They were not forced to come up with a turn around plan. The $700Billion bank bailout of Wall ST. has offiocally FAILED! They won’t loan money to companies that need it. I think they should take all $700 Billion and give it to the Detroit 3 that way they can out develope Toyota by 50 years. That should do it, they are already out developing them by at least 5-10 now.
Them dang republicans are just being crybabies about this. What is good for Detroit, is GREAT for America!
SAVE DETROIT, SAVE THE WORLD!
The Republicans are pretty much responsible for the financial mess we are in and still want to continue their wonderful ways. More money for the rich and all their banker/Wall Street buddies, screw the working man. This party needs to be dis-banded and most of the Bush Administration needs to be put in prison.
I’m afraid that I agree with all of you chaps. The new president promises change but ANY vote for either a Republican or a Democrat is a vote to continue the status quo. Both parties are equally to blame for the financial crisis. The only way out is a total overhaul of government; federal, state and local. Start with strict term limits on ALL elected officials. Limit their pay and benefits and ban campaign contributions by special interest groups and PACs. That would be great but I also believe that if the people voted for third party candidates it would send the message that the pols would have to govern by coalition and the will of the people instead of the will of the monied special interest.
Wesley Kemp
I’m certainly in favor of making members of Congress take the same pay and benefits as the average transplant worker.
There’s something to be said about amending the Constitution to change the election process. There is ample precedent for that.
Dear DaveAdmin.
You have the most complete, coherant and balanced perspective on this whole US auto ‘bailout’ thing. I appreciate the lack of spin, and homerism in your comments. At work I have cut the legs out from under a more than a couple of the “Let ‘em DIE” types, based on the background info I read here. Good job. I also appreciate the constructive comments and non ‘jingoistic’ replies I’ve read here. Good job everyone! Allpar is the BEST!