Not Much of a Shift

Technorati Tags: Bailouts,President Bush,Republican Senators

Breaking News from the White House!!!!!

The New York Times, Dear Gentle Reader(s), has sent out an email alert telling us that the White House is considering using TARP funds for the auto industry bailout:

TARP is the Troubled Assets Relief Program, the official name of the Treasury’s financial rescue program, originally intended to assist banks. Referring to the carmakers, the White House statement said, “A precipitous collapse of this industry would have a severe impact on our economy,” and added, “It would be irresponsible to further weaken and destabilize our economy at this time.”

Yeah.  Right.

Of course, the White House (aka Pres Bush) has resisted using TARP for Detroit.  Resisted until, that is, the Republican Senators voted to refuse a separate, relatively cheap ($15 billion v $700 billion) auto bailout after their attempt to bust the United Auto Workers union clout.

Faced with the bankruptcy of General Motors in the final weeks of his administration, Mr. Bush suddenly took the high ground. 

Desperately saving face had more to do with the White House’s decision than did allowing the Republican Senators’ effort to “further weaken and destabilize our economy at this time.”

Doing the right thing for the wrong reason is OK by the auto workers.  And the rest of the economy.

Trust, but verify.

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