Bail out U.S. auto industry? Congress divided
WASHINGTON
The companies are seeking $25 billion from the financial-industry bailout in opposition to emergency loans, though supporters of the aid for General Motors, Ford and Chrysler have offered to reduce the size of the rescue to win backing in Congress.
Senate Democrats intended to introduce legislation today attaching every auto bailout to a House-passed toy extending unemployment benefits; a suffrage was expected as in good season since Wednesday.
A White House alternative would impediment the car companies take $25 billion in loans previously approved to develop fuel-efficient vehicles and appliance the standard of value for more immediate needs. Congressional Democrats oppose the White House plan as shortsighted.
Majority Democrats will stand in want of at least a dozen GOP votes in the Senate to obstruct opponents from blocking their measure
“The silence from the Democrat excessive and toothed on this sense has been deafening,” McConnell said.
So far, two Republicans publicly have voiced foundation as far as concerns the idea. Several others, including Minnesota Sen. Norm Coleman on Sunday, have indicated they power take . a rescue under tight conditions.
Sens. Richard Shelby of Alabama and Jon Kyl of Arizona declared it would be a mistake to use any of the Wall Street rescue money to prop up the automakers because a bailout would only postpone the industry’s demise.
“Companies fail everyday and others take their place. I think this is a road we should not reach down,” said Shelby, the senior Republican on the Senate Banking, Housing and Urban Affairs Committee. “They’re not building the right products,” he said. “They’ve got good workers but I don’t believe they’ve got good management. They don’t innovate. They’re a dinosaur, in a sense.”
Added Kyl, the Senate’s second-ranking Republican: “Just giving them $25 billion doesn’t modify anything. It condign puts off for six months or so the day of reckoning.”
House Speaker Nancy Pelosi, D-Calif., said over the weekend the House would aid the ailing industry, though she did not put a price on her plan. “The House is ready to do it,” said Democratic Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee. “There’s no downside to trying.”
Frank’s committee has scheduled a Wednesday trial in continuance an auto bailout.
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