Flawed Auto Plan Makes Way Through Congress

It will be interesting to see if Shelby carries out his threat to filibuster the flawed auto plan that is making its way through Congress.

Senate majority leader Harry Reid says Automaker Bailout Plan May Be Completed By Tonight.

Congress may complete work on a $15 billion automaker aid package tonight or tomorrow, Senate Majority Leader Harry Reid said, while the chamber�s top Republican called the plan �deeply flawed.�

Reid and House Speaker Nancy Pelosi said remaining disagreements could be resolved in the next few hours. White House spokeswoman Dana Perino told reporters that negotiators are making �good progress� though �we are still working through a number of issues.�

General Motors Corp. and Chrysler LLC say they need at least $14 billion in combined aid to keep from running out of cash by early next year. Ford Motor Co., which would be eligible to apply for the loans, said again yesterday it doesn�t expect to.

The Democratic proposal would let the president appoint a so-called car czar to oversee industry restructuring, and give taxpayers stock warrants equal to 20 percent of the loans. It would prohibit the automakers from paying dividends and owning or leasing corporate jets, and pay and bonuses would be limited.

The legislation needs 60 votes to overcome a Republican threat in the Senate to stall the measure in endless debate using a parliamentary maneuver called a filibuster.

Senate Republican leader Mitch McConnell said the plan is flawed because it fails to ensure that taxpayers won�t be forced to provide additional aid in coming months and years.

I am hoping Shelby will indeed Filibuster this mess and I encourage everyone to Email, Fax, or phone the senator asking him to do so. Without a Filibuster, it is likely a very flawed bill passes. If you wish to do something, concentrate on calling senators known to be wavering or against the plan and ask them to join Shelby in a filibuster of this madness. Please call Shelby even if he is not your senator.

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Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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