Should the taxpayer bail out the auto-makers in Detroit…?
WASHINGTON – Congress is scrambling to pass the Pentagon budget, aid for flood and hurricane victims and $25 billion in loans for Detroit automakers in a late-session burst of activity that’s flying under the radar compared with efforts to bail out Wall Street.
A stopgap bill must pass to avoid a government shutdown, so Democrats are viewing it as a locomotive to pull past a skeptical White House measures such as the automaker loan and a doubling of home heating subsidies for the poor.
No… About 30 years ago Chrysler approached the US for a loan (not a bail out). This resulted in Chrysler becoming a US auto giant once more. Chrysler also repaid the loan in full and quicker than what was agreed, however paid all of the interest as if paid on time. If the rest of the US based companies want federal help, they need a similar deal. No bail outs…a high interest loan paid back in a short time period.
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So…you’re asking if Congress should be trying to blow out a candle in a burning building?
I think the answer is no. But I’m not sure I understood the question. I’ve never let that stop me before though.
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This is a bill in the house that was approved by both democrat and republican house members. What will happen to it in the senate, I don’t know, but this is a bi-partisan effort.
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Yea, Darn those Democrats… trying to help people.
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No… About 30 years ago Chrysler approached the US for a loan (not a bail out). This resulted in Chrysler becoming a US auto giant once more. Chrysler also repaid the loan in full and quicker than what was agreed, however paid all of the interest as if paid on time. If the rest of the US based companies want federal help, they need a similar deal. No bail outs…a high interest loan paid back in a short time period.
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I think this is more inline with what is happening with AIG, more of aloan for a short period of time and not a bailout. But really if were going to be using 700B for a bailout why not use a tiny 25B to help out what little manufacturing we still have.
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Didn’t tax payers bail out the Savings and Loan institution during the s and l crisis ? When people discuss welfare they want to call folks lazy and bums and losers yet these multi-million dollar or even billion dollar companies are doing just that asking for welfare !
I’d rather see a mother with small children receive help than a billion dollar company !
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No. We should only bail out the banking elite and make sure we include a clause in the bill that makes tax payers responsible indefinitely, and without any agencies or court of laws reviewing the bill. Just like we are doing right now is great, thank you very much.
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September 21, 2008
Text of Draft Proposal for Bailout Plan
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.–The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
(b) Necessary Actions.–The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and
(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for–
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.–The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.–The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.–The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.–The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related asse
I say give them a loan…we also looking at 700billion dollars to help all these wall street problems. Let the big CEO’s making millions take pay cuts for a change.
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