Democratic congressional leaders are urging Treasury Secretary Henry Paulson to use the $700 billion financial-rescue package approved last month to lend to U.S. automakers. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid sent a letter to Paulson saying the rescue bill gives him “broad discretion to purchase, or make commitments to purchase, financial instruments you determine necessary to restore financial-market stability.”
Pelosi was among the lawmakers who met recently with the chief executives of General Motors Corp., Ford Motor Co. and Chrysler LLC. The three companies are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years, according to a person familiar with the matter.
I agree with Peter Schiff and don’t believe these automakers need a bailout at taxpayer expense, what they need is new managment. If General Motors Corp., Ford Motor Co. and Chrysler LLC is uable to conduct business as usual, we should allow them to fail and let more competent people step in to restore those businesses. That is how the free market works, rather than the collectivist agenda of the New World Order.