For weeks, the Democrats have demanded the President hand over billions of dollars worth of bailout funds to the big three auto makers. No questions asked, no accountability, no nothing, just do it. After all, the President wanted to bail out all of his rich friends on Wall Street, why not bail out the automakers too?
President Bush refused and told Congress to use the money already appropriated in 2007 for the automakers for $25 billion.
Congress relented yesterday.
All of the funds to be used are for the current $15 billion bailout is coming entirely from the $25 billion set aside in 2007 by the Congress for the automakers.
The short-term loans would be financed out of an existing $25 billion program
created to help the industry meet fuel-economy standards. Under the terms of the
bill, the loans would mature in seven years. For the first five years the
companies would pay a 5% interest rate; after that, a 9% rate would be levied,
the bill says.
Not only is none of the bailout money being used, but the current funds for $15 billion are a loan and this only gets the automakers through the month of March.
Obama and the Democrats, whether they like it or not, will have to make some grownup decisions in March.
Obama will be forced to decide whether or not he should defy the American people and bail the automakers again in March. There will be no pinning this one on President Bush.