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George Fiddles While Detroit Burns December 17, 2008

Posted by Kate Ryan in Auto Bail-Out, Economy, Unions.
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I haven’t posted for a few days.  The challenge of Christmas shopping with no credit and no money is exhausting – it doesn’t leave much room in your head for deep thoughts.  I couldn’t help thinking as I was scouring the K-Mart bargain bins, however, that at least I don’t have it as bad as other people I know – many of whom are auto workers.  At least I know I’ll have a job next month.

Late last Thursday, the bridge loans that Congress had worked on with the cooperation of the White House, the auto industry, and the UAW was killed by a handful of treasonous Republican senators.  Senator Bob Corker threw all the blame for the deals collapse onto the UAW.  Since they would not commit to a date certain when their wages would equal those of the foreign auto makers, Corker and his pals Shelby and Sessions of Alabama pulled the rug out from under the negotiations.  We later discovered that the GOP was circulating talking points BEFORE the meeting with the UAW stating that the Republicans were going to kill the deal and place the blame on the UAW.   And they accuse Unions of bad faith.

Because of the potential devastation to the already teetering economy, on Friday our fearless leader jumped into the breach.  The President announced that he would use TARP (Troubled Asset Relief Program) funds that had already been allocated to re-tool the auto plants to make the necessary loans.  Detroit breathed a sigh of relief and the markets shot up Monday with the news.

Then – nothing.

Pleading that he needs “more time to get this right”, President Bush has been dragging his feet for over 5 days.  Over the weekend, I watched the Barney Cam Christmas video, saw the surprise visit to Iraq, howled over the shoe-tossing incident, but heard absolutely nothing about saving millions of American jobs.  Today, the Detroit News is reporting that GM and Chrysler are teetering toward bankruptcy, but the president still insists that they will not “be rushed into” anything.  In the mean time, the frigging house is burning down.

Yesterday, MSNBC News reported that a Washington Post poll shows that 64% of Americans do not support a bailout of the auto industry and that most believe its failure won’t endanger our already fragile economy.  That’s amazing to me.  Do these idiots know what happens in a corporate bankruptcy?  First of all, there would be massive layoffs of thousands of workers.  This means that state unemployment coffers will be stretched thinner (several states have reported that they will run out of unemployment funds by March).  Thousands of people will no longer have health insurance and will seek public assistance.  They will need food assistance and home heating assistance as well.   And let’s not forget that many of these folks will not be able to come up with their mortgage payments, adding more properties to foreclosure.  Also, in a corporate bankruptcy – the company can stop paying its bills.  So, GM will not have to pay for the parts and supplies it has already used or stocked.  Those parts manufacturers will have to line up to have a bankruptcy judge decide what fraction of what they are owed will get paid – and how many years it will be until they do. 

This will, of course, affect their bottom lines – so they will have to lay off workers – and the above cycle will repeat itself.   The foreign auto transplants that our southern Republican friends are trying to prop up will suffer as they will not be able to get the parts in the quantities they need, so they will have to lay off workers. 

Duh.

The simple fact is that the UAW has always supported Democrats – another duh – because they Republicans have never done anything for the working person in this country.  Corker, Shelby, and Sessions are using the industry’s troubles to destroy the UAW because of this.  It’s an in-your-face payback of gigantic proportions and they don’t care how many Americans they hurt to score this point.  They’re letting all of us know that payback’s a bitch.  That’s something they would do well to remember.

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FYI – Please see BoycottAlabamaNow and check out the “Hypocrisy Corner”

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Comments»

1. Gilmour Poincaree - December 17, 2008

Hi there … very interesting arguments … but, I’m not a Republican, I’m not an idiot, I’m fully aware of the consequences of a general bankruptcy of our auto-makers and yet, I’m pretty much sure that bailing the big three is almost like throwing money out the window … to the pigeons. Excepting for saving the auto-workers jobs, to bail the big three is like expecting an ostrich to behave like a hummingbird. The very same big three, produce cars in Brazil … and in Brazil, they produce accordingly to Brazil’s multi-fuel state policies … which started in the early 70s … but then, in Brazil they have an ethanol fuel station in almost every street corner … as I have stated in another blog, we can’t change the way cars are made here in the US of A if we don’t have a fuel base infrastructure to support it … unless, of course, if we intend to maintain our economic dependency on petrol … changing the way cars are made here is the easier part … they already have the know-how … and the possible lay offs of auto-workers is nothing compared to the possible lay offs on petrol refineries and enterprises if we really change our fuel base to ethanol.

2. George Bush On Best Political Blogs » George Fiddles While Detroit Burns - December 17, 2008

[…] George Fiddles While Detroit Burns I haven’t posted for a few days.  The challenge of Christmas shopping with no credit and no money is exhausting – it doesn’t leave much room in your head for deep thoughts.  I couldn’t help thinking as I was scouring the K-Mart bargain bins, however, that at least I don’t have it as bad as other people I know – many of whom are auto workers.  At least I know I’ll have a job next month. Late last Thursday, the bridge loans that Congress had worked on with the cooperation of the White House, the auto industry, and the UAW was killed by a handful of treasonous Republican senators.  Senator Bob Corker threw all the blame for the deals collapse onto the UAW.  Since they would not commit to a date certain when their wages would equal those of the foreign auto makers, Corker and his pals Shelby and Sessions of Alabama pulled the rug out from under the negotiations.  We later discovered that the GOP was circulating talking points BEFORE the meeting with the UAW stating that the Republicans were going to kill the deal and place the blame on the UAW.   And they accuse Unions of bad faith. Because of the […] […]


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