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  • auto bailout

    "Cash For Clunkers" Drives into Reality

    But for handing over gobs of cash with no strings attached, it would be harder to imagine a more sweetheart deal for the auto industry: According to the Wall Street Journal, Congress is considering a proposal to pay consumers to buy new cars. It could wind up as part of … More

    U.S. Taxpayer Dollars for Italian Automaker?

    Will the United States government fund Italy’s Fiat’s attempt to own a majority stake in Chrysler? While most people were following other news on Tuesday, Chrysler and Fiat quietly agreed to a deal that would give Fiat a 35% stake in the Chrysler. For this, Fiat would provide Chrysler with … More

    No Contradiction Here

    Washington Post, January 16, 2009: Senate Votes To Release Bailout Funds To Obama In a personal pitch to Democratic senators this week and in two letters sent to lawmakers by his top economic adviser, Lawrence H. Summers, Obama has pledged to focus the rest of the TARP funds on homeowners … More

    Bankruptcy Still Best

    Heritage analyst Andrew Grossman will be discussing the auto bailout with Wall Street Journal Former Detroit Bureau Chief Paul Ingrassia, Competitive Enterprise Institute General Counsel Sam Kazman, and Mackinac Center for Public Policy Senior Economist David Littmann. The panel can be seen live here at 10:30, and will also be … More

    TARP is Deficient Auto Savior

    My Heritage colleagues have already noted that the auto bail-out violates the terms of the TARP legislation by extending funding beyond “financial institutions.” It also appears the latest funding pledge to bail-out auto makers may have violated another Federal law, one normally taken quite seriously: the Anti-Deficiency Act. When Congress … More

    Bush's Betrayal of Free-Market Principles Now Complete

    The Bush Administration’s disclosure that the Treasury Department had already transferred $5 billion in Troubled Asset Relief Program money to GMAC, and that another $1 billion had been promised to GM directly, represents a significant turning point in US economic policy. TARP has now been used, not just to restore … More

    The Bailout Needs a Bailout

    Covering the Bush Administration’s latest attempt to save the free-market by abandoning free-market principles, The Washington Post reports: The new loans push the government’s planned investments under the financial rescue beyond the $350 billion that Congress has authorized; in order to make all the investments that Treasury Secretary Henry M. … More

    The 411 on the Auto Bailout

    From the Detroit Free Press: Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing. Amount: Auto … More

    The Special Interest Politics Game

    From the Machinery of Freedom by David Friedman, Milton’s son. Special interest politics is a simple game. A hundred people sit in a circle, each with his pocket full of pennies. A politician walks around the outside of the circle, taking a penny from each person. No one minds; who … More

    The Great Blurring

    It pains us to quote Thomas Friedman but this, unfortunately, sounds on target: It is both eye-opening and depressing to look at our banking crisis from China. It is eye-opening because it is hard to avoid the conclusion that the U.S. and China are becoming two countries, one system. How … More