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    The Newest Neo-Hooverites

    So desperate for a government takeover of the U.S. auto industry, some on the left are now stooping to borrowing rhetoric from Vice President Dick Cheney to make their case for the bailout of Detroit’s Big Three. Commenting on Cheney’s warning that “If we don’t do this, [the GOP] will … More

    Stiglitz: 'Chapter 11 Is the Right Road for U.S. Carmakers'

    There is not a ton of common ground between the Heritage Foundation and Neo-Keynsian Joseph Stiglitz. But it appears we do see eye to eye on the auto bailout. Yesterday we explained why Bankruptcy Is the Best Way to Save the Auto Industry. Today Stiglitz writes in the Financial Times: … More

    TARP: Now A Slush Fund for Detroit?

    With the Senate’s rejection of a bailout for Detroit’s ailing automakers, there now comes word that President Bush is actively considering using funds allocated by Congress for the Trouble Asset Relief Program (TARP) to prop up the automakers for the time being. Such action would be wrong legally, wrong economically, … More

    The Auto Bailout: So Wrong in So Many Ways

    There’s been a lot of good discussion on the auto bailout over the past day or so. And by good discussion, I mean pointing out how utterly ridiculous an auto bailout is. Our own James Gattuso lays out Congress’s plan in his latest paper: “Eligibility for the program is limited … More

    Auto Bailout Includes Kelo-Style Unconstitutional Takings

    A key provision of proposed legislation to bailout  General Motors and Chrysler, which say they are on the brink of insolvency, may be an unconstitutional taking of private property. The Takings Clause of the Constitution has been the subject of considerable public interest since the Supreme Court’s Kelo decision involving … More

    Don't Play Pelosi's Head Games

    At first Speaker Nancy Pelosi (D-CA) said she would never support an auto bailout bill that used money originally set aside to help Detroit develop fuel-efficient vehicles. But she relented. Then Pelosi claimed she wouldn’t support a bailout bill unless the Big Three promised to drop their lawsuit against California’s … More

    Fannie and Freddie Finally in Focus

    At the height of the campaign season, House Oversight Committee chair Henry Waxman (D-CA) held a number of hearings on the burgeoning financial meltdown including investigations into the bankruptcy of Lehman Brothers, the bailout of AIG, The Breakdown of Credit Rating Agencies, and The Role of Federal Regulators. The purpose … More

    Government Spending Is Never the Answer

    A Christian Science Monitor article this morning argues that Roosevelt didn’t spend enough to jolt economy into recovery. Only when spending skyrocketed for World War Two did the economy recover (unemployment finally dropped, of course this was because everyone was mobilized either as soldier or to support the war effort … More

    Unusual Frankness from The New York Times

    From the NYT‘s write up on President-elect Barack Obama’s promised public works program: Mr. Obama’s plan, if enacted, would be in part a government-directed industrial policy, with lawmakers and administration officials picking winners and losers among private projects and raining large amounts of taxpayer money on them. Government picking winners … More

    The Big Three’s Plans for Change

    A few weeks ago, CEOs from Detroit’s Big Three flew to Washington in their private planes asking for $25 billion. They were ridiculed for flying private jets and Congress sent them home, demanding they needed a comprehensive plan to even consider loaning this kind of money to the automakers. They … More