Robin from the Hood

The House has okayed to put GM and Chrysler on life support, but some Senators don't want to walk toward non-functional capitalism too fast. So what would happen if the unlikely takes place and the Senate says no to Detroit?
The unimaginable:

Some Congressional Democrats speculated that if Senate Republicans were kill the rescue plan, the Treasury secretary, Henry M. Paulson, Jr., would have no choice but to keep G.M. and Chrysler afloat, at least until the new Congress begins early next month and wider Democratic majorities are sworn into office.

www.nytimes.com...

Hank Paulson, the most powerful figure in recent American history, would take care of the problem until the political condition improves. Does the Constitution give Paulson a free hand to reach into one valet, take some cash and deposit it into another valet, which doesn't belong to a banker?

I guess not. The lawmakers of the past could hardly imagine that the USA would ever fall that deep.


[edit on 12/11/2008 by stander]

Well, unless Congress approves handing more money over to him, I don't believe he has the resources to give to Detroit anymore. Last I heard he'd basically blown through the approved and administered $350 Bil like a bag of green apples through a toddler.

Originally posted by burdman30ott6
Well, unless Congress approves handing more money over to him, I don't believe he has the resources to give to Detroit anymore. Last I heard he'd basically blown through the approved and administered $350 Bil like a bag of green apples through a toddler.

I don't think that Paulson was authorized to TARP anyone outside the financial system. That's why I found the speculation about him keeping the car makers afloat until Obama takes the wheel and/or the political balance changes in the Senate somewhat peculiar.

Originally posted by stander

Originally posted by burdman30ott6
Well, unless Congress approves handing more money over to him, I don't believe he has the resources to give to Detroit anymore. Last I heard he'd basically blown through the approved and administered $350 Bil like a bag of green apples through a toddler.

I don't think that Paulson was authorized to TARP anyone outside the financial system. That's why I found the speculation about him keeping the car makers afloat until Obama takes the wheel and/or the political balance changes in the Senate somewhat peculiar.

Throwing the market a bone, President Bush said he would consider using TARP funds to help bail out auto makers. And the Treasury said it's ready to step in to prevent the failure of auto makers until Congress reconvenes.

Aha. So the automakers will get quietly some $350 billion between 2009 and 2012. That would work.

Thanks, stander for the info.


Stander! Are you talking to yourself again?
No, mom. I'm practicing. Paulson Sonata For Three Violins. zeeeeee,zaaaa,zeeeeeee,zaaaaa, zeezaazeeza, ze-za-za-za-zeeeeeeeeeeeeeeeeeeeeee. . .