Monday, February 16, 2009

It's back: Car industry bailout revived by Obama

Bad ideas die hard.

And there are few worse than for the federal government to bail out the American auto industry from the bad decisions of its executives and the excessive wages and benefits demanded by its workers.

Their day of reckoning is here. And they should realize it just like other Americans across the country in other economic sectors.

But the Obama stimulus plan revives the bailout plan, which at one point reached almost $30 billion earlier this year. So contact your congresspeople and tell them to kill this bailout once and for all.

Here is what AP has to report:

WASHINGTON (AP) - It will take more than one "car czar" to help get the embattled U.S. auto industry back on track, President Barack Obama has decided. Instead, his administration is establishing a presidential task force to direct the restructuring of General Motors Corp. (GM) and Chrysler LLC, a senior administration official said Sunday night.

Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers will oversee the across-the-government panel, the official said, speaking on the condition of anonymity because no announcement has been made.

GM and Chrysler are expected to submit restructuring plans to the government by Tuesday, the deadline for showing how they can repay billions in loans and become viable in spite of a huge drop in auto sales.

The auto industry task force is just one element of Obama's plan to revive the flailing economy. On Tuesday he's flying to Denver to sign the $787 billion stimulus bill into law, taking his economic message to the American people, who are giving him high marks for handling the crisis.

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