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Morning Bell: No 'Change' Coming to Corporate Bailout Parade
Posted By aarnn On November 12, 2008 @ 8:32 am In Ongoing Priorities | Comments Disabled
According to reports, ailing U.S. automakers are already lobbying  the Obama transition camp for a taxpayer-financed bailout, and they’ve turned up the dial on doom and gloom in recent weeks to make government action appeal all the more pressing. General Motors, for one, says it will run out of cash  around the end of the year unless something big happens — like an immediate economic rebound that boosts sales of its autos (unlikely) or a major infusion of government money.
These efforts are showing signs of success. In a letter to Treasury Secretary Hank Paulson over the weekend, House Speaker Nancy Pelosi (D-CA) urged government intervention , professing herself “convinced that our nation’s automobile industry — the heart of our manufacturing sector — and the jobs of tens of thousands of Americans are at risk.” On Sunday, incoming White House Chief of Staff Rahm Emanuel called the auto industry “an essential part of our economy and an essential part of our industrial base” and said the Obama administration would explore “different options” to save it.
An administration truly committed to “change” ought to consider this option: bankruptcy. It’s not the end of the industry, but a new beginning. Here’s why:
The incoming administration can deliver this dollop of change today: Take the bailout option off the table once and for all and let Detroit get itself working again.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2008/11/12/morning-bell-no-change-coming-to-corporate-bailout-parade/
URLs in this post:
 already lobbying: http://online.wsj.com/article/SB122616278065311225.html
 run out of cash: http://www.usatoday.com/money/companies/earnings/2008-11-07-general-motors_N.htm
 urged government intervention: http://www.ft.com/cms/s/0/1fc10c0e-ae63-11dd-b621-000077b07658.html?nclick_check=1
 current market capitalization: http://finance.google.com/finance?client=ob&q=NYSE:GM
 worth: http://finance.google.com/finance?q=aapl
 can be reformed: http://www2.law.cornell.edu/uscode/uscode11/usc_sec_11_00001113----000-.html
 recoupment: http://www.thestreet.com/story/10446593/1/automakers-seek-more-government-aid.html?puc=googlen&cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA
 easily strike arch-foe Israel: http://www.usatoday.com/news/world/2008-11-12-iran-missile_N.htm
 Like Barack Obama’s stimulus plan, communist China’s stimulus plan: http://www.usatoday.com/money/world/2008-11-11-China_N.htm
 Alaska’s North Slope: http://www.washingtonpost.com/wp-dyn/content/article/2008/11/11/AR2008111103047.html
 charter schools: http://www.latimes.com/news/local/la-me-school12-2008nov12,0,5118646.story
 Obama Tilt: http://washingtontimes.com/news/2008/nov/10/post-concedes-bias-for-obama/
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