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  • The Other Bailout: Is $7 Billion Still Real Money?

    Only in Washington can $7 billion dollars be considered a small amount.   But that seems to be the feeling among many in Congress, which is on the verge of approving a bailout for Detroit automakers.   As approved by the House on Wednesday, the program would provide for $25 billion in low-interest loans aimed at Detroit automakers to build more fuel efficient cars. (The program is discussed in more detail here.)   The Senate may take up the matter as early as today as part of the continuing resolution on appropriations.

    As estimated by the Congressional Budget Office, it will cost taxpayers some $7 billion to finance the $25 billion in loans.  That may sound like a lot of bucks to you and me, but some — such as Michigan Rep. John Dingell (D-MI) — think its hardly worth counting.   Says Dingell, as quoted in Motor Trend magazine:

    “Some critics will call this loan package a bailout. It is not. These loans amount to a little more than one percent of the real bailout — the one the Bush administration wants for Wall Street at a cost of $700 billion to taxpayers.”

    That’s new math on steroids.   Dingell would be well-advised to remember Everett Dirksen’s remark that if you spend a billion here and a billion there, it will soon add up to real money.

    And $7 billion may become real money even faster.

    Posted in Economics [slideshow_deploy]

    6 Responses to The Other Bailout: Is $7 Billion Still Real Money?

    1. bill-tb says:

      Save the money, dump CAFE.

    2. Dinah Russell, Orlan says:

      Personally, I'm sick and tired of the left trying to shove their pork into a bill meant to help the country. I would love to see the names of every Senator and Congress person who has attempted to add pork to what should be the leanest bill possible to help the country and not screw the taxpayers footing the bill. If the Senator or Congress person is running for re-election, the folks from that state should vote them out of office and if they aren't running, impeach them because they sure don't give a hoot about their taxpayers.

      The fact that Obama was more interested in his television appearance than being in Washington when work needed to be done, says it all about the man and his party. Lord help us if that man gets elected!

    3. Jim Magar, Beaverton says:

      Hearing all this talk about "main street America" from these politicians is rather entertaining. We need to look at the real agenda of our "elected" officials and leaders. If there is to be a financial crisis brought about by the heads of these institutions, then I say let those heads roll without any parachute at all. Plus, G.W. Bush and Company needs to be held with responsibility also and pitch in with some of the monies that they have gained from their "financial plan" that has cost the U.S. taxpayer well over a trillion dollars in deficit. Impeach and levy fees against all responsible so as to avoid the taxpayer having to pay more than what we already have.

    4. Jim Magar, Beaverton says:

      Our resources are better invested in permanent, long-term solutions. This bail-out will not fix anything. Rather, it will help the perpetrators get away and ensure that the ultimate day of reckoning is worse.

      The Administration wants to drain the real economy to bail out Wall Street. It seems to us that the more appropriate plan would be to require Wall Street to return the $4 trillion plus that is missing and use that to rebuild the real economy.

      We think the time has come to reverse the flow. Go to any business school in the country. That is what they teach. Money should move out of unproductive sectors into productive sectors. The bail-out does just the opposite.

      “Just say NO!”

      Bail-out without due diligence of so called “troubled assets” is a perfect way to hide documentation of financial crimes. It is also a perfect means to launder both the past ill-gotten gains and new federal money spent recklessly and without necessary safeguards and oversight mechanisms. Be very suspicious when they tell you “we just can’t tell what’s in these troubled assets.” We can assure you that the federal government has field offices all across the country that deal with significant amounts of real estate and mortgage assets on a daily basis. If Treasury refuses for more than a decade to comply with the laws, with approximately $4 trillion missing (and counting), it is not competent to manage $700 billion of taxpayer money while its arm is twisted by Wall Street.

    5. Jim Magar, Beaverton says:

      We have all heard of what the bailout will do for/to us. What I haven’t heard is what will happen if there is no bailout?

    6. Larry Garrison, Vers says:

      Was there a need for the bailout? Perhaps. Did I want it to happen? Absolutely not. The fundamental reasons behind the need for such an instrument grates on every nerve I have. And to make matters worse, more pork was added to the bill so as to make it more pallatable to certain members of congress. I just signed up to begin receiving emails from Citizens Against Government Waste. Pork and entitlement programs are eroding the foundations of what should be our solid present and future. I am completely fed up with the liberties capitol hill takes with our money. I suggest a new web site. http://www.transparency.gov. This web site would be devoted to holding our elected "officials" accountable for every dollar they spend, every meeting they attend with special interest groups, every project they recommend . . . well, you get the general idea. What's more, this web site and the resources it requires to distribute would not be paid for with tax dollars. Rather, it would be paid for out of the elected officials payroll budget, which should be set in 4 year intervals (that means they would actually have to plan ahead). Any takers?

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