President Bush, soon to leave office amid lowest approval ratings, seems to be unconcerned about leaving a bad taste in taxpayers’ mouths and is ignoring signals sent from his party members in Congress. Why else would he approve a $17 billion rescue package for G.M. and Chrysler when the Senate killed its version of bailout? Has he lost faith in free market capitalism? And notice that Ford isn’t among the list of beggars. Maybe G.M. and Chrysler ought to learn a few things from this competitor. The fact that Ford is doing just fine without government money proves that there is a glimmer of hope for the auto industry, even if it means America is left with just one car company.
…The bailout statute defines “financial institutions” eligible for the bailout as ”any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company.” Never mind that Congress listed as examples of ”financial institutions” only entities that were banks, insurance companies, or financial institutions, not automakers.
Using this money to save a car company is clearly not the intent of this statute. What is Bush thinking? If he is interpreting the bailout bill to include any institution, then TARP is essentially a slush fund for the White House. That would make it unconstitutional. But if the bill is honored as-is, then the auto bailout is illegal.
