Friday, December 19, 2008

Bush Done Good

... well, Bush done ok, on this issue. He's extending a loan to the car-companies, as I suspect you were already aware. Bush was for the car loans all along, but he had two differences with the Democratic congress, first insisting on not tying it to increased fuel efficiency standards, and second wanting it to come from money ear-marked for enhancing fuel efficiency. Sense a pattern? Our president really doesn't like fuel efficiency.
When congressional Republicans killed the deal, Bush had little choice but to take the money from TARP, not from the fuel efficiency money. If GM went under, by the way, the government would be shelling out a lot more TARP money, so it makes sense fiscally to bail out the company. From Bird Brain.
AIG issued credit default swaps on GM. A lot of credit default swaps, apparently; according to Forbes.com, estimates are that AIG's exposure is about 10 times the outstanding debt. If GM declares bankruptcy, AIG is on the hook for that money, and guess who currently owns AIG? That's right, the government. In a nutshell, if we let GM go bankrupt, we taxpayers are likely to end up paying out eight to ten times as much as if we bail them

The congressional Republican's who opposed didn't get much of what they want. This seems only fair to me. Opposing the deal was prompted mixture of southern regionalism and ugly classicism-based union-busting. The congressional Republicans have shown themselves unwilling to play any constructive role.They deserve nothing.

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