super83Z

http://www.msnbc.msn.com/id/28166218

Politicians almost never do that.

Z28Wilson

Wouldn't Congress need to approve tapping the $700B? Or is it solely up to G-Dub?

guionM

Actually, it doesn't even need to go that high.

When the money was approved, congress gave the Treasury the power to spend it as it sees fit.

If US Treasury Secretary Henry Paulson decided to spend any part of the $700 billion to help the auto industry, he is fully in his power to do so as long as it was OK with GW.

Of course, a call from his boss in the White House would immediately make it happen.

Z28Wilson

Understood.

super83Z

I Think he will he is just going to make the Big 3 sweat it out a bit more. Oddly enough that there is $15 billion uncommited funds.

Z28Wilson

I think the president's goal was to get Congress to come to an agreement first so that the $700B wouldn't have to be tapped. Now that it appears unlikely to happen in the near future, he is stepping in. I wouldn't be suprised if this was the plan all along. Just my gut feeling though.

GWB has been criticized for not seeming sympathetic toward the industry or making himself available enough -- but I think at crunch time, he understands what is at stake.

HuJass

According to the news, the first $350B can be tapped at will.
The second $350B has to have congressional approval before being tapped.

They've doled out $335B of the initial $350B.
So Bush can instruct Paulson to send GM & Chrysler $15B right now if he so chooses.

A decision may come on Monday.

Adam4356

GW probably had this as a plan B from the beginning. Most people will hate the idea of taking TARP money for this.

Congress had to take a shot at it. They did relatively well, i think. At least in terms of coming very very close to a deal. It shook out alot of arguements, concessions, and discussion.


I hope the president gets credit for this. There should be alot of kiss *** from those that relentlessly criticized over the years and called him dumb.

Z28Wilson

He will not get credit, trust me.

JakeRobb

Remember, let's talk about what's happening, and not about the politicians doing it.

1fastdog

We could all benefit from a statesman rather than a politician.

flowmotion

VP Cheney went down to Capital Hill and reportedly referred to the automakers failing as "Herbert Hoover Time", so at least someone on the right gets it.

Of course Hoover was a very respected statesman, but that's probably not what Cheney meant

WERM

Yup. And they know it will be hard to get approval for $350 billion more for all their banker buddies if the auto industry actually collapses.

So I expect the remaining 15 billion to be used to help the automakers...but more so to make sure they get that other 350 billion to the bankers. We'll see.