Last week President Bush said that he'd help the auto companies despite Senate Republicans' effort to kill the industry off. Today he actually followed through with it to the tune of $13.4 billion with more to come if they're good. In this rare instance, he put practicality over ideology and helped save not just three companies, but the livelihoods of millions of workers.
From TPM:
President Bush said, "Allowing the auto companies to collapse is not a responsible course of action." Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.
If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.
This is great news for the immediate solvency of GM and Chrysler. It also lets Obama take the issue next month with some room to spare. Bush has done a lot of terrible things, just in the last month or so, but this isn't one of them. The bad news though, is that this is the last of the first $350 billion. Two months, and that chunk of borrowed money is all gone and there is more to show of it from this last few billion than the first $200 billion or so. Well, at least some jobs have been spared this holiday season....by George Bush no less. Maybe it's a "defining his legacy" decision.
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