So apparently they are thinking that maybe a Senate vote on this can happen tonight. They are in the middle of a quorum call. Dingy Harry spoke earlier and urged a bailout. He said that times are tough and that Congress shouldn’t “pile on” by not approving a bailout. What a load of crock. Congress had no problem “piling on” with onerous regulations and taxes all these many years… Then Mitch McConnell came on. He led off with the famous quote “a government big enough to give you anything you want is big enough to take it all away”. I couldn’t help but think ‘boy I wish he would have remembered that quote when he was in the majority’. Anyhoo he is touting Corker’s amendments. According to McConnell the amendments would require reform now rather than later. They would require that the Big 3 reduce their debt load by 2/3rds via some sort of equity swap. I don’t know how that works. They would also require that the labor costs at the Big 3 must become the same as Toyota, Honda, et al. That’s pretty remarkable. I’m cheering, but I don’t know how any company could reduce its labor costs by that much in 3 months’ time.
And I can’t help but think that even with Corker’s amendments this is a bad idea. Will the terms be so onerous that the companies won’t be able to comply. They will then come back in 3 months, to a more pliant Congress, saying that they couldn’t meet the terms, and Congress will say “that’s okay, we’ll take care of those pesky health care costs for you by nationalizing health care…”
Right now Ensign is speaking. He says “go Chapter 11”. Bankruptcy judge then wouldn’t be influenced by the political process as it would be by the quasi-bankruptcy that would happen with this bailout loan dealie. “Why does Congress think it can succeed where so many businesspeople have failed?” Good question, Ensign. Vote no on the bailout please.