A Look Ahead for The Auto Bailout

Jay: It's called the "snooze button" - like the ones on our alarm clocks.
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Congressperson Pelosi, should we do something about saving 10% of our domestic product?...*snooze*
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Senator Reid, Senator Lieberman has been undermining out policies; should we take corrective action now? *snooze*

I heard the Borgen Project is going to design a new car that only poor people will be able to drive.
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(Just trying to get a jump on the spammers.)

JNS -- lets not act as if there isn't a political component to this stuff. Of course they are going to eventually do what they have to do to save these jobs. But they are not going to do it in a way that hands the GOP a platform to take back control of the house. the winning position will be saving the jobs, forcing the industry to turn things around and becoming a part of the energy revolution.
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The GOP is going to continue to rely on a comparison of our values versus their lack of sharing our values. Our comparison will be competent forward thinking governance versus know nothing do nothing political posturing.

JNS: Good article. I'm happy to learn that *some* members of congress realize the importance of the auto industry to America's economic health.
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And while I understand Pelosi's and Reid's interest in having the auto execs present their rehabilitation "Plans", I'm left to wonder: what about the "Plans" for AIG, BS, WaMu, FanFred, etc., etc.? This seems to me to be a serious double standard.
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Last: Could you *finally* drop the link to the 50 worst cars of all time? Please? It's old. Really. A link to some exciting new offerings would do more good.

As I thought about this today, as a diversion from the 4 million dollars I have to trim from a project I'm leading, I think sending the boys from Detroit back home to develop a proposal, was good governance and good government.
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I'm being asked to do more with less. Maybe they only need 15 billion.
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Providing congress and the public with a detailed plan provides transparency to what has been a very opaque process (the $750b bailout).
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Perhaps the boys from the big three can have their tone deafness treated while they're gone, and provide congress and the American people with a better explanation of what their 90, 120, 180 day plans are. What can we expect from them?
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It might even be a wise move to have the chairs of the boards of these companies return with them to address important corporate governance questions, about why these guys shouldn't be replaced. Let the board members answer those questions; not the CEOs.
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Finally, they might want to look at alternative forms of transport when they return to DC.

JNS: Good article. I'm happy to learn that *some* members of congress realize the importance of the auto industry to America's economic health.
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And while I understand Pelosi's and Reid's interest in having the auto execs present their rehabilitation "Plans", I'm left to wonder: what about the "Plans" for AIG, BS, WaMu, FanFred, etc., etc.? This seems to me to be a serious double standard.
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JNS: One last thing: Could you *finally* drop the link to the 50 worst cars of all time? Please? It's old. Really. A link to some exciting new offerings would do more good today!

JNS: One last thing: Could you *finally* drop the link to the 50 worst cars of all time? Please? It's old. Really. A link to some new fuel-efficient offerings would do more good.

@kbang -- That ship has sailed...they didn't build safeguards/restrictions into that legislation.
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Fooled me once shame on you, fooled me twice, I think not this time.

kbang
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I think its just piss poor timing by the big 3. Don't forget that the first bailout the 700 billion dollar one was suppposed to have strict standard and oversight but unfortunately the follow through has been lacking and the results have been disasterous. And it has been a public embarassment to everyone involved. So now with the House Rethugs who voted against the bill both times pointing fingers and trying to say "I told you so" this is now a political landmine and the Dems can't afford to give the Big 3 this loan and then have it blow up in their faces. It sucks and I feel its wrong but its the reality of the situation. The Dems have to come off like they are laying down the law on the Big 3 or the Republicans will claim that the Dems are using tax payer money to throw good money after bad. Mind you I feel like Harry Reid wussed out yet again today but that didnt surprise me much. The Dems fail to realize that if they force votes on these issues then they put the republicans on the spot and if the republicans vote against the bridge loan and the Big 3 go under the Republicans will NEVER live that down. But rather than have political courage Harry Reid's heart pumps kool aid. I just hope the auto makers can make it a couple of weeks.

sg: I think this was a surprising good move today.

http://www.msnbc.msn.com/id/27827392/

This link has some good analysis.

Someone earlier today mentioned Josh Marshall being anti Clinton so I wanted to share this from his site that explains that in point of fact he actually likes HRC
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More on HRC as SOS
On CNN this afternoon Wolf Blitzer quoted some critical stuff I wrote yesterday about making Hillary Clinton the Secretary of State. So I wanted to add some context. It's not just that I have doubts about the job Clinton might do as Secretary of State, which I do, it's also that I want her to stay in the senate. I think it's the perfect job for her. Hell, she's my senator. I've vote for her. Her voice, ability to politick, her smarts, just who she is as Hillary Clinton are really needed there, especially as Ted Kennedy's health may limit his ability to push big legislation in the way he has for decades. It's not one or the other; it's both. She's needed in the senate.

I would note that of the readers who write in and explain why this is such a great idea, quite a few of them have an explanation that boils down to thinking that Obama needs to coopt Hillary, get her working for him on the inside so he doesn't have to worry about her trying to undermine his presidency on the outside. That's a much more cynical view of her motives than I've ever had.

--Josh Marshall

Andy
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This is why I say Harry Reid is spineless. The stock market still tanked and maybe JUST MAYBE if put on the spot the frikkin Republicans would have voted FOR the auto bailout in light of what happened the last time the republicans voted against a bailout and the market tanked. Now the republicans can frame it as they would have voted for it but Harry Reid didn't let them. He is the worlds biggest wuss. In his own words
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We don't need to go through a bunch of votes here that fail,” Reid told reporters. “The stock markets, the credit markets are having a lot of difficulties. What kind of message do we send to the American people by having a bunch of failed votes here? We do not have the votes.”

@sgw: Yeah, timing is cr@p. You want a basket full of cash? No problem! You want lunch money? Now hold on...!
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Andy linked to a good article, but I'm still with you SGW re: Reid's spinelessness.
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Yes, the markets took a dive last month when the 1st Bailout vote didn't pass. But, the market is still tanking during this "strategic delay".
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If Reid were to announce a vote 7 days out, giving every US car plant, parts plant, and car dealership time to melt congress' fax machines and email servers with feedback, it would go a lot farther than any armtwisting Reid is doing.

AG Mukaskey has collapsed at the Federalist Society meeting. Being rushed to hospital

A bailout will only be a short term delay. Why not get to the root of the problem - which is, how to get consumers to buy US autos?

What do they tend to buy? Japanese

Why? They feel they get value for their money

Why? Because Japanese built cars generally perform better with lower maintenance costs

Why do the Japanese build this products while US companies struggle? Japanese automakers focus HEAVILY on the end consumer, designing products for the consumer. The US automakers have lost sight of this principle.

It's all addressed in this book titled "Becoming Re-Successful", available on Amazon and at http://www.lulu.com/conten/4339719.

See more at dskouson.blogspot.com

JNS: It's 6 am and I will soon head out to the office. Thanks for your rundown. The general tenor of comments focuses on the practical. I think the hearing did one good thing: it made those CEO's look foolish. I'd advise them to take the train to Washington and come with a detailed proposal and plans for implementation. I seem to recall reading about one of the CEOs. He uses his jet to fly with his wife (with prior approval) to Seattle every week-end. If that is true then think of the implications: the cost, the sense of vanity, etc. If anyone can track this down it may be worth exploring. What perks to these execs get and how must does it cost the company. I will be watching you JNS!

bitter, is this is?
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"According to a regulatory filing, Ford Motor Co. CEO Alan Mulally's total compensation last year of $22.8 million included $752,203 for his personal use of the company's jet, as well as personal use of the jet by his wife, children and guests "to ease the burden of Mr. Mulally moving to Southeast Michigan and away from his family in Seattle."
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http://tinyurl.com/66q89k

Scarborough is blaming Obama this morning for not being President before he's President. Of course if he were, he'd be meddling. Can't wait until Obama is actually President and he's being blamed for things in his own administration instead of Bush's. So then Joe said "well he could be calling Pelosi behind the scenes." Always amazes me when someone says that. How do we know he hasn't?
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Maybe because CNN is reporting someone has hacked Obama's cell records and knows everyone he's been calling?

kathy
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You know they said its official now that HRC will be SOS right? Andrea Mitchell made the annoucement at the beginning of the show

kathy, the NYTimes also seems to be blaming Obama for not being president yet. By resigning from the Senate before the current session began and allowing it to appear that a sense of drift could prevail until he is inaugurated, Mr. Obama may have missed an opportunity to exert leadership. Must be the new sport in town. No one seems to be looking to the guy who currently is, you know, president for leadership.

kathy and james - a cool feature of make link is that it uses any selected text as the text overlaying the link.

Joe Klein is battling Suze Orman right now on MSNBC. By the way Suze Orman is pretty much an anti intellectual when it comes to her supposed area of expertise ie personal finance. She gives the exactly wrong advice most of the time

wvng
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Don't forget that most of these papers who are overlooking Bush now were singing his praises just 4 short years ago.

SG: from last night...I agree with you that Reid is spineless, but like a broken clock that has the correct time twice a day, yesterday was ok for him to be as you put it "spineless."
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As far as Andrea Mitchell is concerned, her knowledge and credibility is almost as good as her husband's. I'm still not convinced Hillary is going to be Secretary of State.
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And on Obama not stepping up to be President before being president? Where is the call for George W. Bush the Herbert Hoover of the 21st century to do some in the interim. Granted he has less creidbility than Andrea Mitchell (see above), but he is the current president of the U.S. His secretary of the Treasure could instil some confidence in the markets,if he could keep his story straight. It's pretty outrageous, because if Obama did try to lead he would be accused of "overreaching".
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Slightly OT watch for more layoffs to be announced across the finance industry over the next several days. I also talked to a staffer at Sports Illustrated last night and no one at the Magazinig has opted for the voluntary buy out. That means involuntary layoffs coming there on or about December 1st.