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Graves votes against auto bailout
The U.S. House acted Wednesday night to pass a $14 billion bailout of the automobile industry, and Northwest Missouri Congressman Sam Graves remained an opponent of the government-backed handouts to struggling companies.
House members approved the measure by a 237 to 170 vote. Mr. Graves joined 149 other Republicans in voting against the measure.
Democrat Nancy Boyda, who represents Northeast Kansas, voted yes along with 204 other members of her party.
Mr. Graves released this statement:
To date, Congress has already spent over a trillion dollars to bail out failed companies. As was the case with the Wall Street bailout, I do not believe that putting more taxpayer money at risk will solve the problem. That is why I voted against bailing out the auto industry.
One thing is clear; the management of these companies needs to change. Without real changes, a one-time infusion of taxpayer money will not solve the auto industry's problems. Today’s bailout did nothing to return the Big Three to viability and left taxpayers on the hook for billions of dollars.
Instead of reforming the auto industry, this bill grew the size of government with the creation of a so-called Car Czar. Replacing the executives at the Big Three with politicians and bureaucrats will not solve the problem. We need to make the auto industry viable again, not nationalize the industry.
Unfortunately, this bailout will only increase our debt and guarantee that the auto industry will be back to ask for another bailout.
Senate consideration of the auto rescue plan comes next. Missouri Sen. Christopher Bond, a Republican, has been a supporter of a bailout, but told The New York Times: “While I am fighting to save Missouri auto jobs, Congress is just putting off the inevitable unless we force the companies to reform fundamentally, which this latest plan fails to do and is why I am offering changes to make it work.”
JOB SEARCH
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I agree 100% and more if at all possible.
Another brilliant move - other stories on this issue might prove enlightening.
I knew there was a reason I liked this guy. Thank you Congressman Graves! Too bad there are so many others in congress that are all too willing to sell us out.
NO MORE Bailouts with our money.
Congressman Graves was right on the initial bailout and he's right on this one also. When are we going to realize the money they are spending isn't ours, it's our grandkids. We are saddling them with a debt they will never be able to pay. If the auto industry wants to survive then they need to take some lessons from the foreign automakers down south.
I guess the Auto companies should be asking for free money (Subsidies) instead of loans,as Sen Graves seems to have no problem with his family receiving free money (farm subsidies).
I should correct my comment that it is Congressman Graves
After driving by the striking GM Fairfax workers this year, and hearing the arguments that striking employess shouted,
i realized GM had lost control of that company.
God Bless Sam Graves! Someone in DC with a brain!
For all those so in favor of not seeing a guaranteed loan for the auto industry be ready for what you are wishing for.
When another 3+ million "join" the ranks of the unemployed and we see in the neighborhood of another trillion dollars vaporize from savings and pension funds things will become much more clear.
Seems to me it is the legacy costs that are making GM uncompetitive; even Sen. Corker said GM's wage rates are not the main problem. Wouldn't it make sense for the bailout money to be used first to "buy out" those legacies (all or a portion) and relieve GM of that burden and then develop a plan for the future of the company which very well might include a bridge loan with some confidence it would be paid back. We all know the loan package being described the past two days has little chance of improving GM's viability and will just prolong the inevitable journey to bankruptcy. Ford is in relatively much better shape, but Chrysler is probably hopeless. GM's bondholders, shareholders and suppliers are undoubtedly in for a lot of pain and the intransigence of the UAW is inexcusable. Some of the angst described above by apmastrangelo is unavoidable, but it doesn't have to be THAT bad if some clear thinking was just applied to the problem.
Wright - Appreciate you recognize some of the inevitable if this happens as it should be the most critical thing to consider for the country.
As for Senator Corker; he is a puppet in the pocket of those manufactures in his state.
EVERY leading economist has stated the concept embraced by Corker was not equitable, indicating the plan excluded the shareholders and creditors from taking a hit and I agree that should be the case. What they have also said is the U.S. economy will be stressed to a breaking point from the demands placed on it by those effected. Ironically much of this was said by the very economist Corker attempted to use in defense of his position.
One of the reasons you have trouble comprehending my postings is that you confuse my facts with your fantasies. You state the GM equity holders would not take a hit while the reality is that their equity would be reduced to 30 cents on the dollar.
Source (Bloomberg):
http://www.bloomberg.com/apps/news?pid=20601087&sid=atjeItlGDbOY&refer=home
I like Graves, it was sad to see what was sad about him during the election.
Politics is tough, we are lucky to have people like Graves representing us.
Wright - "shareholders" and "creditors" not issued by "bond"
The only time there is a problem comprehending your postings is when the "tap dance" begins.
I am thankful to be well insulated from the current and projected fallout if and when this happens. I hope you are also as the real "fantasies" are thinking such events will not be catastrophic.
Yes, God Bless Sam Graves! And by the way....... the first bailout option (or was it the 2nd time) anyway, the first time.... the "Big 3" flew into Washington in their fancy jets. And Washington said----- NO. Next time they drove their hybrid cars. So---OK, maybe. So congress asked for the auto workers to take a cut in pay. NO WAY said the union!!! So..... let us that make $40,000 per year, pay for the bailout of those making $80,000 a year. Shame on the union. Now I know I'll get some flack with that statement.
Yes you will get some flack about unions...from the striking employees of Smurfit Stone....none from me though.