Auto Bailout Illegal ?

Discussion in 'Politics' started by carpro, Dec 21, 2008.

  1. carpro

    carpro
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    http://www.cnsnews.com/public/content/article.aspx?RsrcID=41124

    For Auto Bailout to Be Legal, Automakers Must Now be Considered ‘Financial Institutions’
    Friday, December 19, 2008
    By Fred Lucas, Staff Writer


    President George W. Bush pauses during a statement on the auto industry at the White House on Friday, December 19, 2008 in Washington. (AP Photo/Evan Vucci)(CNSNews.com) – Some critics are questioning the propriety and even legality of using money from the $700-billion financial-industry bailout bill that Congress passed in October to give a $17.4-billion bailout to Chrysler and General Motors.

    That legislation, which created the Troubled Asset Relief Program (TARP), expressly limited the Executive Branch to using the funding the law approved to purchase assets from “financial institutions.”

    A briefing paper put out by the conservative Heritage Foundation said that using the TARP money to bailout an auto company would be “legally wrong” since an auto company is not a “financial institution.”

    CNSNews.com asked the White House press office whether the administration was in fact now defining the auto companies as “financial institutions” under the terms of the TARP law. The White House did not answer the question and referred CNSNews.com to the Treasury Department.

    The Treasury Department has not responded to CNSNews.com’s question as to whether it is now considering General Motors and Chrysler “financial institutions” under the terms of the TARP law.
     
  2. Salty

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    Well, is the General Motors Acceptance Coporations a "financial institution" hmm nice loophole:thumbs:
     
  3. carpro

    carpro
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    To get around the law, there is a good chance GMAC and Chrysler Credit will eventually be the beneficiaries of the money which they will then "loan" to their parent companies.

    But no one in government has admitted it's illegal ...yet.
     
  4. billwald

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    How can der Fuhrer do anything illegally?
     
  5. hawg_427

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    Just in case anyone doesn't know, I found out last night at my Lifegroup meeting that the average line worker at those GM Plants make about $150-200.00 per hour. Union Backed Job. Do you feel so sorry for them now. Who makes 200.00 Hour besides a doctor or lawyer????
     
  6. Revmitchell

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    Companies nor unions cannot drive costs up beyond what people are willing to pay for vehicles. But of course the communists in this country believe that the proletariat deserve compensation equal to that of the execs and the owners otherwise they are being oppressed. Which explains the UAW wages.
     
  7. saturneptune

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    Another fine Republican free market initiative brought to you by the waning days of the Bush Administration (conservative of course)
     
  8. windcatcher

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    Bush is not 'conservative' in the financial and limited government sense of conservatism. He does seem to be conservative as far as moral values goes..... although some may debate the Iraq war.... and did he lie or honestly feel compelled to go to war for cause.

    Personally, I've gotten the feeling along throughout his Presidency, that his policies have been pushed by powers of influence and finance and secret forces which none of us are privileged to know. He might've been a dead president if he had not cooperated. Sort of like JFK, MLK, Robert Kennedy, and Ronald Reagon (almost). ............................and while Obama proposes 'change' and is completing his cabinet..... I bet there are already 'handlelers waiting in the wings to steer him into what he can and can not do to oblige with their program.

    President Bush did what presidents do unless the Congress steps in to exercise their powers and their rights to overrule. Considering that many people did not support the first bailout, and were adamantly against this.... he made a strategic move to grant assistance, provided the Congress allows it to stand.... while giving the transitions of powers to take place.

    I think it is wrong. But then I was against the first 'firesale' bailout which was sold to teh Congress and the American people to begin with.
     
  9. windcatcher

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    I like what my Representative wrote (he's a Republican)
    Emphasis added..... not in the original communication.
     
  10. carpro

    carpro
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    Why are the liberals not screaming?

    He finally does something that may be truly illegal, and they're silent?

    Hmmm.......

    Must save the UAW at any cost, maybe????
     
  11. billwald

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    > average line worker at those GM Plants make about $150-200.00 per hour

    How can anyone believe this stuff??????
     
  12. Martin

    Martin
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    ==Having studied the Holocaust, I believe your remark is historically off base and inappropriate. We may not agree with the way the Bush administration has governed over the past eight long years, but that is no reason to compare him with one of the most wicked mass murderers in the history of Western Civilization.


    ________________________________

    As for the auto bailout being illegal, technically speaking so was the Louisiana Purchase and many other things our government has done. Sometimes crisis calls for unusual actions. President Bush, for once, did the right thing when he loaned money to the two car companies. By doing so he has, at least, put off a massive worsening of the economic situation in this country. Those who believe the bailout was wrong must ask themselves what the alternative was. What happens if GM goes under? I can tell you what will happen but I'm not sure most people in the Republican Party want to hear it. Sometimes political and economic realities must be put ahead of political ideology. Normally I would be 100% opposed to any bailout. However when I considered the alternative to a bailout at this point in history I found that I had no choice but to support this loan/bailout.
     
  13. Revmitchell

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    We do not know if he has or has not.
     

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