Big 3 Bailout Becomes Big 2 Bailout for the Short-Term

Bush Administration Refuses to Budge

Extremely unpopular or not, Congress is determined to go through with the Big 3 Bailout. But - now - so is the White House. But it is for far less money and for just two of the automobile manufacturers. Reuters has reported that leading Democrats in Congress have negotiated a deal with White House officials to loan two of the Big 3 Detroit automarkers as much as $15 billion dollars, less than half of what the Big 3 asked for when they came before Congress on Thursday and Friday (December 4,5).

Sources told the Reuters that the money was expected to be a short-term loan until the Democrats move in in force on January 20, 2009. Advocates and opponents alike describe the deal as stopgap at best, solving nothing, and putting more pressure on the flailing American economy in the long run by demanding more loans and bailouts in the future.

Ford CEO Alan Mulally told Congress that his corporation was not in need of federal assistance at the moment.

House Speaker Nancy Pelosi, who has stridently insisted upon monies loaned to the auto companies come from the $700 billion bailout money given the U. S. Treasury in September, sidelined her efforts Friday when it became clear that the Bush administration was refusing to budge on the issue. Instead, monies approved for a $25 Energy Department loan that was set up to help auto companies meet fuel-efficiency standards, the option promoted by the White House, will be used.

Congressman John Dingell (D-MI) is optimistic, stating that it was a "good beginning." He also said that "next year we will work with President-Elect Obama for a permanent solution."

Both Speaker Pelosi and Senate Majority Leader Harry Reid said they expected a vote on the proposed measure next week.