Automakers bailout: Why the Dems' Drive to Aid Detroit is Stalling Out - by Jeff Haynes
Although they have presided over the largest expansion of the U.S. government since the Johnson administration, the GOP has apparently reached its line in the sand when it comes to economic bailouts. Senate Majority Leader Harry Reid Monday introduced legislation asking that $25 billion of the $700 billion bailout fund Congress approved in September be redirected for use by General Motors, Ford and Chrysler in the hopes of helping the faltering industry avoid going under, but Republicans immediately balked at the idea. "It does no good for taxpayers to pour $25 billion into the car companies and find that a year later that money has been spent and yet nothing has changed to diminish their obligations. Where will they get the next $25 billion? And the $25 billion after that?" Senator Jon Kyl, an Arizona Republican, said on the Senate floor. "The reality is that they've got to change the way that they're doing business in order to, I think, warrant asking taxpayers for anything."
Note EU-Digest: why don't the automakers request Shell, Mobil and Exxon to bail them out? After all they were the ones who enjoyed the benefits of the gas guzzling cars Detroit produced.?
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