Republicans are putting their feet down and refusing to throw another $50 billion into Detroit’s black hole. Democrats, meanwhile, don’t think they have the votes to ram the bailout home.
Has Bailout Nation finally drawn a line in the sand? We’re on the edge of our seats.
WSJ: The prospect of a government bailout of General Motors Corp. before the end of the year dimmed Thursday, with a leading Senate Democrat pointing to a lack of political will for a package and the top House Republican assailing the plans.
Senate Banking Committee Chairman Christopher Dodd said he knew of no Republicans who would support the Democrats’ $25 billion proposal and said he was disinclined to move a bill without bipartisan support.
“I’d want to be careful about bringing up a proposition that might fail,” given that a rescue plan would likely fare better under a President-elect Barack Obama administration, Sen. Dodd (D., Conn.) told reporters on Capitol Hill. “There’s some political considerations that need to be made over the next few days.”
Prominent Republicans have questioned bailing out Detroit’s long-struggling auto makers, and partisan differences threatened to derail the Democrats’ plans. House Minority Leader John Boehner of Ohio said Thursday that a multibillion-dollar rescue of Detroit auto makers would be “neither fair to taxpayers nor sound fiscal policy” without requiring dramatic reforms of the companies.
“What assurances will Democrats give taxpayers about their chances of getting their bailout money back?” Mr. Boehner asked in a statement, questioning why Democratic leaders haven’t insisted that auto makers produce a “credible plan to strengthen their financial health.”
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