Metro Detroiters to Obama's auto task force: We're in a crisis

Looks like they can chew gum and walk at the same time.

WASHINGTON -- The top advisers for President Barack Obama's auto task force will have a chance today to literally kick the tires on Detroit's struggling automakers before deciding how much federal aid they're worth.

The visit, spurred by invitations from the automakers, will cap two weeks of intensive research by the presidential task force into all aspects of the U.S. auto industry as it suffers the worst slump in four decades. After today's trip, the Obama administration has only days to address warnings from General Motors Corp. and Chrysler LLC of imminent bankruptcy and collapse without at least $7 billion in aid by the end of the month -- $5 billion for Chrysler and $2 billion for GM.

The advisers -- Steven Rattner, the lead adviser on the team; Ron Bloom; Diana Farrell, and Brian Deese -- have three meetings on their itinerary today.

Senator Bob Corker Takes Over For Santa

From my friends at Blogging for Michigan-

From the Desk of Santa

An important letter from Santa Claus to all children:

In preparing your letter to Santa, you must submit a 100-page turnaround plan documenting how you expect to be good.

If approved by the Grinch from Tennessee, you will receive half your presents at Christmas and the batteries to run them in March.

Note that all end-of-year allowances must be forfeited, and current parents must be dumped, even though previous parents may be responsible for your bad behavior.

An appointed czar, who once read a blog on child-rearing, will make your life decisions for you.

Bicycles are not allowed; more expensive hybrid tricycles will be substituted, whether you fit one, or not.

If you do not comply with your plan to be good, you and all the people you know will have their homes foreclosed, and you will be replaced by a child from Asia, who gets to keep your toys and send your allowance back to his or her home country.

Kids from Wall Street are exempt from all of the above.

Merry Christmas,
~Santa

Bush Will Deign To Save Detroit

Just catching bits and pieces off MSNBC. 17 bil with lots of strings attached. More when I get it.

WASHINGTON - President George W. Bush will make an announcement about a rescue plan for the ailing U.S. automakers at 9 a.m. ET Friday, the White House said.

He's expected to announce that automakers will get $13.4 billion in short-term financing, which would come from the government's $700 billion financial bailout fund. An additional $4 billion could be available in February.

The auto companies must use the funds to become financially sound. If they are not financially viable by March 31, 2009, the loans will be called and all of the funds will be returned to Treasury. By the government's definition, financial viability is a positive net present value, which takes into account all current and future costs and can fully repay the government loan.

Separated At Birth Automaker Edition

Heh. Via LOLFed.

Face The Nation- Auto Industry Bailout Battle

Bob Schieffer spoke to Sen. Carl Levin, Sen. Sherrod Brown and Sen. Bob Corker about whether or not the White House should take action to bailout the American Auto Industry.

I'm with Oliver, Corker makes me crazy in many way.

Toyota Republicans Killed The Manfacturing Base In America

Buchanan making sense. I'd like to hear the Dem pundits repeating "Toyota Republicans" and "Carmageddon" over and over on the Sunday shows.

Countdown- Thom Hartmann On The Politics Of The Big Three Situation

Really nice to see a liberally progressive liberal on the teevee machine. Kudos to Shuster.

What's in Congress's garage?

By GottaLaff

Who's going to win this one, Big Oil or the Big Three?

About 100 members of Congress who lease vehicles through their taxpayer-funded House allowance have been driving American cars, many of them gas-guzzlers like the Chevy Tahoe, the GMC Yukon, and even a handful of pricy Cadillacs. [...]

[M]embers of Congress may be choosing their new cars from a list of EPA-approved vehicles that's light on Big Three models and heavy on foreign competitors.

I'm keeping score. So far, Big Oil: 0, Big Three: 0. But Big Oil has the edge.

Rules in the House allow Congressional representatives to use taxpayer funds from an annual allowance (called their Member Representational Allowance, or MRA) to take out leases on vehicles for use in their home districts. The same practice is not allowed in the U.S. Senate.

126 representatives cost us taxpayers about a million bucks a year, but who's counting?

The cars they have been driving are almost all made in the U.S.A. Fewer than 20 of the MRA-funded vehicles are manufactured by foreign automakers.

The Big 3 just got a point. Take that, Big Oil.

[...] 19 were Chryslers, 38 were Ford models, and 52 were manufactured by GM. But some of the most popular Big Three cars in the Congress' fleet -- like the Tahoe, the Yukon and the Ford Explorer -- also have fuel efficiency ratings that are hardly eco-friendly.

Score one for Big Oil. It's 1-1 now. Anyone taking bets on a winner?

Many of the cars are also not cheap. Members face no restrictions on the monthly costs of the leases, which range from less than $200 a month to more than $1,100.

Hey, that's our money they're using! Congress 1, us 0.

Rep. Jim Clyburn, for example, drives a Lincoln Town Car for $726 a month; Rep. Charlie Rangel rides in a 2004 Cadillac DeVille for $777 a month; Maurice Hinchey of New York leases a 2007 BMW 530i and a Nissan Altima; and even Puerto Rico's Luis Fortuno, who will leave the Hill to serve as the island nation's governor next year, drove a Ford Expedition with a price tag of more than $1,000 a month.

My car's over ten years old and they're putt-putting around in fancy-schmancymobiles?

Steve Ellis of watchdog group Taxpayers for Common Sense:

“If members of Congress are allotting their own office budgets this way,” he asks, “what does that say about how they’re looking at the federal budget?"

I think federal budget oversight speaks for itself.

So, anyway, there's a new rule that mandates that "all vehicles leased on the taxpayers' dime meet EPA's qualifications for low greenhouse gas emissions."

Score one big point for environmentalists (and us).

Less than half of the cars being leased by House members in September made the cut.

Take the point back. That stinks.

What's more, less than one in three of the EPA-approved cars on the list are made in the United States.

The Big Three just lost one, too. It's now 1-0, Big Oil. In fact, make that 2-0, based on that whole "less than half" thing.

Of the 622 low-emissions vehicles suggested, only 175 are made in the U.S. by the Big Three American automakers. That's compared to 234 Japanese-made options and 143 German autos.

The Big Three is now at -1. I am now forming the "L for loser" sign on my forehead with my thumb and forefinger.

EPA officials will meet next week with members of the Missouri lawmaker's staff and the CAO to discuss the new regulations in advance of the 111th Congress. It’s unclear if that meeting will produce more formal guidance on which vehicle models will be acceptable for incoming freshmen.

But if you spot your newly-elected Congressman or -woman behind the wheel of a seven-seater luxury SUV, it's probably a good bet that they're not riding on your dime.

Big Oil 2, Big Three -1. The rest of us? Screwed.

Republicans stiff Big 3, despite donations

By GottaLaff

Republicans have a habit of accepting big, fat donations and then screwing the donors. Why, here's an example now!

Since 1990, the auto industry has cut $100 million in checks to the GOP, compared with $34 million to Democrats. But the Big Three is snubbed on bailout.

By standing in the way of an auto industry bailout, GOP senators appear to have bitten the hand that fed them.

Over the last decade, General Motors has given $1.50 to Republican candidates for every $1 it has given to Democrats. That same pattern has been followed by Chrysler and Ford, which year after year have favored the right side of the aisle, sometimes by more than a 3-to-1 ratio in dollar terms.

Since 1990, the auto industry as a whole – including suppliers, dealers and manufacturers – has cut $100 million in checks to Republicans, compared with just $34 million to Democrats.

On Thursday night, the carmakers discovered just how little loyalty that investment strategy had bought them.

More here.

The joke was on the Big 3, and it was a real Corker.

John Cole Has Saved Detroit

No really, he has. I can't imagine any self respecting GOP'r wouldn't love this. Go read.

A Bailout Plan the GOP Can Support

UAW President Ron Gettelfinger on Senate failure

Above part 1, part 2 as soon as I get it.

Breaking- White House open to using TARP money for automakers

Just said on MSNBC. Get the hell on it already.

Added-

WASHINGTON - The White House said Friday it is willing to consider using some of the $700 billion Wall Street bailout fund to help the U.S. auto industry.

The news comes the day after a bailout-weary Congress killed a $14 billion package to aid struggling U.S. automakers. A partisan dispute Thursday night over union wage cuts derailed a last-ditch effort to revive the emergency aid before year’s end.

Lansing, Michigan Mayor Lashes Out

Mayor Virg Bernero of Lansing, Mich., tells Harry Smith that Congress' failure to help the Big 3 is "colossal." He called on the president to stop what he believes could be an economic depression.

Countdown: GOP Willing to Kill the Auto Bailout and the UAW

To quote a smart woman- "The wingnuts are already spinning this as being the fault of the UAW - congratulations Democrats. Not only have you seriously pissed off a major voting bloc, you gave the Republicans the cover to justify their actions. We didn't hand you guys sweeping victories in November to have Bob Corker call the shots."

WASHINGTON (Reuters) – A proposed bailout of U.S. automakers failed in the Senate on Thursday night, raising the specter of an industry collapse that sent Asian markets reeling and sparked fears it could deepen the recession.

"It's over with," Senate Majority Leader Harry Reid said of congressional efforts this year just before the Democratic proposal to extend up to $14 billion to the stricken industry fell short in voting on a procedural motion.

Pressure immediately shifted to the White House, with calls for President George W. Bush to consider intervening with emergency financing.

Mitch McConnell: Auto industry bailout votes aren't there

By GottaLaff

Why should there be agreement? Why, the very thought is ridiculous:

The auto industry bailout politics are a mess this morning.

Senate Minority Leader Mitch McConnell said Wednesday that Republicans are not prepared to back the massive auto-bailout package being negotiated by the White House and congressional Democrats. [...]

"Of course we're not going to agree to expedite a procedure on a bill that we haven't seen," McConnell said.

On top of that, Reid says there's trouble on the Democratic side. Reid said a deal had not been reached yet, and that the Senate Democrats were not "totally in agreement" with the House Democrats

Democratic aides say McConnell has refused to come to the table to negotiate the controversial package, but McConnell insists he has been left out of the talks.

Reid sounded open to giving the GOP time to review the 25-page bill, but he said that if the GOP objects to requests to speed consideration, final votes could be held Saturday or Sunday. [...]

Reid said that Vice President-elect Joe Biden, who has not resigned his Senate seat, also may vote on the package if his vote is needed.

But Republicans are girding for a filibuster.

BREAKING: Deal reached in principle on $15B auto bailout

By GottaLaff

The Washington Post is calling this breaking news:

Congressional aides and a senior administration official say the White House and congressional Democrats have reached an agreement in principle to speed $15 billion in government loans to struggling U.S. automakers.

The plan could see a vote as early as Wednesday. It creates a government "car czar," to be named by President George W. Bush, to oversee the bailout billions and an auto industry restructuring. The czar would have to yank back the federal money if carmakers didn't do enough to reinvent themselves.

The measure is not final and could still face obstacles from congressional Republicans, who have not approved it.

The officials spoke on condition of anonymity because they were not authorized to announce the developments.

Ha! I beat CNN on this one.

UPDATE: Ford's not part of this. It's the other two, per CNN.

2008 Auto Bailout Bill version 1.0

By GottaLaff

Via Ambinder:

Here's a version of the auto bailout bill that's circulating on the Hill right now. (redline.doc.)

It calls for the president will appoint a car czar to administer this, but both sides won't call the czar a czar. He or she will be merely an "adviser." Any new expenditure greater than $25 million would be subject to this administrator's approval.

One of the biggest concessions that Democrats seem to have wrung out of Detroit is a promise to drop their lawsuits against state governments trying to get them to curtail greenhouse gas emissions. [...]

Republicans say this provision is toxic, as it would essentially allow 16 states to have a veto over the automakers internal manufacturing processes, thereby increasing costs dramatically in the short term.

The Democrats seem to have conceded, in turn, that the bailouts funds -- $15 billion -- will be redirected from the loan guarantees written into the 2007 energy bill, at least initially. [...]

Automakers would have seven years to pay back the loans at an interest rate of 5% for five years and then 9% for the remaining two. Note: the '07 bill contained $25 billion in loan guarantees, but the $7 billion appropriated by Congress to guarantee those loans now secures only about $15 million.

More money would be made available in the spring of 2009, but there is apparently no agreement on this provision just yet.

Richard Shelby Threatens to Filibuster Auto Bailout

Yeah, because you're so adverse to government supporting automakers, at least ones that aren't bringing money into your state Shelby.

I trust it is safe to say that when you refer to "government subsidies," you are referring to subsidies provided by both federal and state governments. And if this is in fact true, then I am sure you were adamantly against the State of Alabama offering lucrative incentives (in essence, subsidies) to Mercedes Benz in the early 1990s to lure the German automobile manufacturer to the State.

As it turned out, Alabama offered a stunning $253 million incentive package to Mercedes. Additionally, the state also offered to train the workers, clear and improve the site, upgrade utilities, and buy 2,500 Mercedes Benz vehicles. All told, it is estimated that the incentive package totaled anywhere from $153,000 to $220,000 per created job. On top of all this, the state gave the foreign automaker a large parcel of land worth between $250 and $300 million, which was coincidentally how much the company expected to invest in building the plant.

With all due respect, Senator, where was your outrage when all this was going on?

Isn't anyone in the media going to bring this hypocrisy up?

TBPNTOTV!!! Big Three edition

By GottaLaff

What's in store for us today from TBPNTOTV!!!*? Why, they'll dissect "the week in politics" like nobody's business. Today's nobody's businessmen/women are Gloria Borger, Bill "MadCap" Schneider, and Joe Johns. They're all "senior political analysts", so they know stuff we couldn't possibly know.

But first, a word from "no bias, no bull, no objectivity" Campbell Brown Senor! What a Sunday taste treat! But wait! Uh oh! She's going to continue her tirade about Obama's needling a reporter for a question he asked about the president-elect's pre-election remarks about Hillary Clinton.

Wolf Blitzer is giving her yet another soap box on which to chastise Obama over his "dismissiveness". Wolf is emphasizing the "tension" between Obama and Hilz, and defending Bias-Free Brown's relentless criticism. Let's just beat this one to death, okay, CNN? Okay.

Now, on to TBPNTOTV!!!

Wolf: The Big 3.

Gloria: They'll hold their noses and do something. Given the unemployment numbers, they say you can't let them fail.

MadCap: They're putting off government supervision until Obama's in. They're punting.

Wolf: [plays clip of Barney Frank saying Obama should be assertive] Is Obama doing enough?

Joe: It's a thin line. There's a fluid situation, with his not being able to convince members of Congress when you're not in power. And what if he steps in and fails? Remember McCain's big rush to Washington with his rescue plan?

Gloria: He intends to start on Day One. He's getting a consensus, even with conservatives. Barney Frank is looking for help.

Wolf: Why is the government spending billions to bail out these financial institutions, the public asks, but not the Big 3, pillars of manufacturing jobs?

MadCap: They don't like the word bailout, or rescue... They're bailing out big business, but the people who need help are those in foreclosure.

Joe: The Big 3 has a serious P.R. problem.

Gloria: The Big 3 guys were apologetic, but, people want mortgage relief, too. They can't just bail out Wall St. and the Big 3.

Wolf: There are huge unemployment numbers.

Joe: It's stunning. But Obama is looking to try to save or restore 2.5 million jobs. His economic team must have accounted for that 2.5 million number in lost jobs, so his rescue is really [compensation for about the same number of jobs lost].

Wolf: Caroline Kennedy for N.Y. Senator is in the cards.

MadCap: Family members support this, Ted Kennedy is encouraging it, making calls. But she has to run in 2010n and 2012. I pity anyone who runs against her.

Gloria: This is the Kennedy who was private, raising kids. She's now stepping into the public arena. She and Obama have become friends. There's a legacy there, it was Robert Kennedy's seat.

MadCap: She wants to become part of the Obama [unintelligible]...

Joe: It will make Gov. Paterson popular. Caroline Kennedy has the power to raise the money it takes.

Wolf: Louisana... Jefferson is out. History was made, he lost to a Vietnamese American, moderate Republican, Ahn Cao.

MadCap: Republicans are happy. They have a Republican governor, Indian-American Bobby Jindal, and now this. And they carried Georgia too.

Gloria: Ethics problems, people don't have time for them any more.

Joe: Dems knew Jefferson was a problem. The turnout was small. 15% of African Americans voted Republican.

OVPICYMIS!!!** re: Auto industry

Barack Obama: We have to provide the Big 3 with assistance, but conditioned on them making significant adjustments, restructure. Everyone has to. They don't have a sustainable business model now.

Chris Dodd: So many businesses are related to the auto industry. None of us like this, we're furious, but there's more at stake than Detroit.

Richard Shelby: This was 30 years in the making. They've got to compete, and they can't today.

Gettelfinger, President of the UAW: We need to shore up the industry with this emergency bridge loan; it's not a bailout. It's good for rural America...

*THE BEST POLITICAL NEWS TEAM ON TELEVISION!!!
**OUR VERY POPULAR IN CASE YOU MISSED IT SEGMENT!!!

VIDEO-- Obama on Meet the Press: Big Three made ‘strategic mistakes’

By GottaLaff