Friday, December 19, 2008

Bush Approves Auto Loans

No "managed bankruptcy" - but the ridiculous demands of the Senate Republicans on autoworkers are included. For now.

The Bush administration will offer General Motors and Chrysler loans totaling $17.4 billion in return for strict conditions mirroring those proposed by Senate Republicans last week.

Those terms include not only the conditions agreed to by congressional Democrats, but new limits sought on the UAW contracts including matching wage and benefits of foreign automakers with U.S. plants by the end of next year.

The money will come from the $700-billion bailout of the financial industry and the first loan of $13.4 billion will be available immediately, with a second amount of $4 billion available in February assuming the Obama administration draws down the second half of the bailout funds.

Aren't you glad we elected Bob Corker leader of the Senate?

The targets draw from the proposal made by Sen. Bob Corker, R-Tenn., including requiring a two-thirds cut in debt, the UAW wage conditions and eliminating the jobs bank. In addition, GM and Chrysler will be required to make new agreements with dealers and suppliers by March 31.

Senate Republicans made labor the target, and it worked. They admit to the "shot across the bow".

Now ask yourself - who will be next?

Take the money, smile and say "thank you". And pray to God that this isn't the way the United States Senate is going to be run next year.