Second chance for GOP to split Dems with “orderly, pre-packaged” bankruptcy

By gamecock - Posted on December 18th, 2008

Tagged: Op-Ed

How stupid is the elected GOP in D.C.? The next 36 hours will provide the answer.

President Bush will not give a blank TARP check to the Big Three Detroit automakers, as this column and Larry Kudlow indicated last week when the bailout was “corked” by Congress:

The Bush administration is looking at “orderly” bankruptcy as a way to deal with the desperately ailing U.S. auto industry, the White House said Thursday as car makers readied more plant closings and a half million Americans filed new jobless claims. With Detroit anxiously holding its breath and waiting for federal help, White House press secretary Dana Perino said, “There’s an orderly way to do bankruptcies that provides for more of a soft landing. I think that’s what we would be talking about.”

The President has tossed them an identical softball by another name, i.e. “orderly”.

Of course, as usual, many conservatives have already denounced President Bush as a sell out, much like they have over the past seven years on the war, which he went ahead and won anyway.

Will the blowhards ever learn not to underestimate this man?

Mike DeVine’s Charlotte Observer, Examiner.com and Minority Report columns

“One man with courage makes a majority.” - Andrew Jackson

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Why don't we wait and see...

Submitted by DocJ on Thu, 2008-12-18 15:10.

... what, precisely, is in the pre-packaging first before we declare victory, eh?

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Diplomacy is the art of saying 'Nice doggie' until you can find a rock.

Cart before horse. What we should have embraced before

Submitted by gamecock on Thu, 2008-12-18 15:38.

and should now, is the CONCEPT of some kind of bankruptcy. We can always turn on the details, but given the likely alternative if we don’t accept a pre-2009 solution, we will likely save the taxpayers billions as opposed to what would happen post-1/20/2009.

As I said in my previous columns, given that we have called for B/R, and given our minority status, and given the transition during an econ crisis, we need to be nuanced savvy and seize on the ADMISSION of bankruptcy while also showing we “care.’ Esp given our minority status.

Yes, the details matter greatly, but so do symbols, and I also think that Obama can be rolled and can be co-opted thanks to his ego and disdain for Pelosi and Reid, both of whom have insulted him on occasion.

Mike DeVine’s Examiner.com columns

“One man with courage makes a majority.” - Andrew Jackson

the Washington disdain for

Submitted by David Hinz on Thu, 2008-12-18 16:38.

dirt under the fingernails is perplexing. They rolled over for the banks without question and with only enough hesitation to swing another $186 billion in pork, but they have nothing at all for an industry that is CRUCIAL to the nation's future.

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1.20.2013 Independence Day

Amen Dave, and given all the factors incl UAW excesses and

Submitted by gamecock on Thu, 2008-12-18 17:26.

govt policy for the past 40 years, I do think that if there is even a sliver of a chance to achieve a middle ground solution between a disorderly B/R and a lavish Pelosi written bailout, I favor doing all we can to get the former.

This country is in a crisis in which only the beginnings of which we feel now and which hurts badly. We simply cannot allow a huge collapse now with the effect on psychology sensitive markets and millions added immediately to the unemployment rolls.

Crisis is. This is like an econ 911 and different rules apply on substance as well as political perceptions.

more later

Mike DeVine’s Examiner.com columns

“One man with courage makes a majority.” - Andrew Jackson

an Econ 9-11

Submitted by David Hinz on Thu, 2008-12-18 18:06.

what a superb way of putting it. A fiscal 9-11 brought about by our own government policy meddling in the marketplace.

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1.20.2013 Independence Day

Dave, I see your point if I accept your premise.

Submitted by DocJ on Fri, 2008-12-19 04:11.

But I don't think bailing out the UAW is in any way critical to the nation's future.

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Diplomacy is the art of saying 'Nice doggie' until you can find a rock.

Haven't "they" already?

Submitted by DocJ on Fri, 2008-12-19 04:09.

Am I missing something? I thought the CONCEPT of some kind of bankruptcy was already embraced by the GOP.

BTW, just a detail, but doing something now in no way, shape or form precludes the Democrats from un-doing, or doing something stupid(er), come 21JAN09.

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Diplomacy is the art of saying 'Nice doggie' until you can find a rock.

True, but what I thought was possible was to co-opt

Submitted by gamecock on Fri, 2008-12-19 06:57.

Obama’s utterance and divide him conceptually from the congressional dems, in public with his own words.

Moreover, I thought it was slightly possible to get a package passed in that context that would have given Obama cover to say the deal was done.

Even now, one thing that has been achieve by Bush is that any package implemented this year will be only 25%-33% of the $35B+ that the dems wanted this year.

Mike DeVine’s Examiner.com columns

“One man with courage makes a majority.” - Andrew Jackson

Pretty small consolation, though.

Submitted by DocJ on Fri, 2008-12-19 07:04.

With Zero's peeps openly talking about tossing-around upwards of 1-trillion newly printed green-backs next year the only thing nominally achieved here is a delay.

Congressional Dems are not going to get divided from Zero in the spending of money - any differences between them (and there will be many) will simply be papered over with soon-to-be-worthless money using an "let's just take All Of The Above!" approach.

No, deciding who gets to spend the money? That's where the battles are going to take place, my friend. (Sorry, couldn't resist channeling McMaverick for a second there - my friend!)

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Diplomacy is the art of saying 'Nice doggie' until you can find a rock.

no disagreement from me but I get this impression about the far

Submitted by pilgrim on Thu, 2008-12-18 17:18.

left. They seem to be going wacked out crazy over Pastor Rick Warren giving the prayer at the inauguration. That symbolic gesture makes them too crazy to think about such mundane matters as the future of the US economy.

John Wayne: "You're a persistent cuss, pilgrim."

Amazing isn't it? And I have to say, on behalf of Obama and

Submitted by gamecock on Thu, 2008-12-18 17:29.

the Black community in general, and I know what Obama is and have written of black and liberal pathologies, that it is a wonderful thing that Obama would have Warren do this. I just teared up thinking of it. There is some good in Obama. And the fact that our country could unite at least for the length of a prayer, is a good thing.

Mike DeVine’s Examiner.com columns

“One man with courage makes a majority.” - Andrew Jackson

Well, the deal is done, Mike.

Submitted by DocJ on Fri, 2008-12-19 07:24.

Here's the outline.

No pre-packaged bankruptcy.

Partial nationalizing of the industry (GM and Chrysler, at least)

Get your TARP money now, tell us how you're going to restructure 2-months into Zero's term.

Embrace the suck.

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Diplomacy is the art of saying 'Nice doggie' until you can find a rock.

President George Bush screwing Conservatives to the bitter end!

Submitted by Jaded on Fri, 2008-12-19 07:34.

Whoever has his enemy at his mercy & does not destroy him is his own enemy

How stupid is the elected GOP in D.C.?

Submitted by mbecker908 on Fri, 2008-12-19 19:11.

Thanks for asking.

Stupid enough to trust George W. Bush to act like a conservative. Any time.

The guy has no spine and no convictions (other than that DWI).

as ever mbecker

Submitted by David Hinz on Sat, 2008-12-20 04:29.

we find you at a loss for words, squishy and unable to arrive at an opinion.

Ditto what Steve said... don't be a stranger [or any stranger].

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1.20.2013 Independence Day

Stupid is a squishy word that substitutes for detailed analysis

Submitted by gamecock on Sat, 2008-12-20 08:08.

and thought.

spit up a rope is another Redstate is an embarrassment.

And to say that Bush is a sell out from a small bridge loan to keep Detroit from imploding at Christmas, then that phrase has lost all meaning.

I wonder how Michiganders think on this?

Mike DeVine’s Examiner.com columns

“One man with courage makes a majority.” - Andrew Jackson

Oh, and just to be really really really clear:

Submitted by mbecker908 on Fri, 2008-12-19 19:14.

George W. Bush is not just a "sell-out". He's the poster boy for sell-outs.

Good riddance. I'm not sure the country or the party will ever get the bad taste out of our mouths from this President.

Amen!!!

Submitted by Steve Foley on Fri, 2008-12-19 20:42.

And nice to see you over here becker

Not a sell out: really, really, really, really, really

Submitted by gamecock on Sat, 2008-12-20 08:05.

more later

Idiot, spit up ropes? will you also bring that level of discourse over here too?

smile

Ever think of responding to columns line by line? Not many give me that courtesy, nor those of anyone else that expresses an original thought, so don’t sweat it.

DeVine is famous for doing that, and he doesn’t expect others to out do him!

smile squared

Mike DeVine’s Examiner.com columns

“One man with courage makes a majority.” - Andrew Jackson

it takes a posterboy to know one

Submitted by pilgrim on Sat, 2008-12-20 09:06.

Bitter angry BDS during the Christmas holidays seem to be in vogue these days.

John Wayne: "You're a persistent cuss, pilgrim."

It's NOT BDS...

Submitted by Steve Foley on Sat, 2008-12-20 10:04.

...Yesterday Bush said "I had to abandon free market principles in order to save the free market" that may have been the most idiotic thing I've ever heard the man say... and that's quite a long list.

Look, Bush was/is great on TWOT but we all knew what we were getting with the BS "new tone" but as a conservative one just can't defend his actions any longer one does so only at ones beclowning... This man now rivals FDR as the President most responsible for implementing socialism in America, unfortunately for him. That will be his legacy!

I respectfully disagree.

Submitted by pilgrim on Sat, 2008-12-20 10:15.

Maybe you have a different opinion than I about what was the next thing to take place if there was no conditioned monetary arrangement made. I personally think that GM and Chrysler would have filed Chapter 7 bankruptcy and liquidated. A lot of my friends and relatives who live in Kokomo Indiana would be immediately unemployed with no jobs to turn to. I wish it were not so, but wishing doesn't change the situation.

John Wayne: "You're a persistent cuss, pilgrim."

People are losing jobs all across...

Submitted by Steve Foley on Sat, 2008-12-20 10:48.

...the country since when has that ever made a difference in how the market should function or call to action our governments meddling in it!

The President erred on this spectacularly - He should have called an emergency session and backed the House Republicans No-bailout restructuring plan this problem doesn't have an either - or type of solution it's not black or white there were/are many options to explore but the WH refused to do so!

I agree with what you wanted to happen philosophically

Submitted by pilgrim on Sat, 2008-12-20 11:14.

But like the Mick Jagger and gamecock's ex said "You can't always get what you want." My hope is that the debate and the discussion will center around what are we going to do to advance an alternative to what the Majority Party is doing to us instead of attacking the Republican President on his way out. I mean the far left are going to just love it if we are going to spend all of our time from now on demonizing Pres. Bush. All the time spent doing this is time that are not spending attacking them.

John Wayne: "You're a persistent cuss, pilgrim."

He brought it on himself...

Submitted by RottDawg on Sat, 2008-12-20 11:27.

The very few people that have supported this President and have been shunned by friends and family for doing so are the ones that are being crapped upon by him. I refuse to speak one good word of the man. His legacy will be one of failure, for conservatives, failure to support capitalism! I'm sure the left sill give him tons of credit for that... NOT!

"You can't always get what you want."

Submitted by Steve Foley on Sat, 2008-12-20 11:47.

This Is true and with this president, as a conservative, I've learned to embrace the suck and understand that I never did get what I wanted...not even a little bit.

I'm not going to spend any more or less time on the president than is warranted by his actions but I take exception to the use of the term "demonizing Pres. Bush", this gives the impression that I and others are conjuring up false or untrue statements in order to cast dispersions on the President for sport! Nothing could be further from the truth pointing out bad decisions is not demonizing!

fair enough. I like your latest column about the future. n/t

Submitted by pilgrim on Sat, 2008-12-20 11:59.

John Wayne: "You're a persistent cuss, pilgrim."

Thanks...

Submitted by Steve Foley on Sat, 2008-12-20 13:05.

...and great job on your Christmas piece as well!

Line by line commentary, just for you gc.

Submitted by mbecker908 on Sat, 2008-12-20 13:05.

Title...
Second chance for GOP to split Dems with “orderly, pre-packaged” bankruptcy
We can draw the conclusion from your title that you think that it's important that the Congressional Republicans take advantage where they can to cause in-fighting amongst Dems. The auto bailout is one such issue, given the non-union automakers in the south where the newest BlueDogs are from. It also makes sense to use the bailout money as a club to get blackletter concessions from the UAW, since they will be primary beneficiaries of any cash thrown to the Big3. As your title correctly notes, we had an opportunity when this first came up to drive the wedge and get the concessions and didn't force the issue, primarily if you'll remember, because of initiatives by the White House.

The "problem" that is underlying in a Big3 BK, that you allude to in your title, is the fact that they, at least GM, are flat out of cash and will have to liquidate. They are not able to get commercial financing to continue operations and the fed is the source of last resort for cash. The issue is not "bankruptcy" per se, it's no cash. A "pre-packaged" BK with federal cash guarantees would solve their liquidity problem and get a workout plan on the table.

Body
How stupid is the elected GOP in D.C.? The next 36 hours will provide the answer.
This implies that letting the first opportunity to force a pre-packaged BK was "stupid". We let the B3 and UAW off the hook. In these situations you don't have the power to enforce concessions that both B3 and the UAW have studiously avoided for decades and their Democrat enablers won't force on them (see B. Frank's comments on wage concessions), and we let them off the hook the first time we shouldn't do it again. If they are not forced to accept blackletter concessions that modify their current contract NOW, they certainly won't after they get the cash.

President Bush will not give a blank TARP check to the Big Three Detroit automakers...
The statement by Pernino underlines what I've commented on just above. You rightly note based on Pernino's statement that the WH will force concessions and that it is the right thing to do. I agree with that.

The GOP missed a golden opportunity to divide the President-Elect from the far left in Congress last month when Obama lofted a “pre-packaged” bankrupSecond chance for GOP to split Dems with “orderly, pre-packaged” bankruptcy trial balloon.
Again, absolutely correct. We could drive a major split in the Dems. The Republicans in Congress had already "manned-up" for the fight, all that remained was for the WH to follow through on the statement Pernino made. Enough BlueDogs would have fallen into line to force concessions and Nancy would have eaten crow. It's also a solution that the incoming Administration could not have weaseled out of, if we'd required contract concessions signed off before the fed cut the check.

Wake up GOP and show your public support for an Obama gift for cover against a Drive-by media that loves to paint us as heartless by accepting the Obama/Bush alternative that echoes what conservatives have called for all along...
I'm assuming with this sentence that you are supporting the "pre-packaged BK" with UAW concessions hard-wired in prior to funding by the fed. You rightly note that Obama would take the deal and that conservatives have been calling for it since the problem came to a head. All that was required was for the WH and Congressional R's to put pen to paper, draft the legislation and call the B3 and UAW to the table and hand them a pen. (Somewhat simplified, but in the end the GOP takes the lead and gets the legislation drafted with concessions hard-wired.)

Of course, as usual, many conservatives have already denounced President Bush as a sell out...
OK, so as of today Bush has authorized the SoT to hand off about $17B (GM only needed about $2B to get them through the end of the year, Chrysler and Ford effectively needed $0.00) to B3 as a "loan" that "has to be paid back" and requires that B3/UAW present a workout plan for approval by March. If the "plan" isn't approved the loan is called.

So, we got no "pre-packaged BK" from the deal that was unilaterally put forth by President Bush. We got not only no blackletter concessions from the UAW, the subject hasn't even been directly addressed, only that B3 has to present a workout plan. Oh, and the workout plan gets presented to the new President/Congress who would likely approve a copy of the Manhattan White Pages if that is what gets dropped on the table. Hell will freeze over before this "loan" gets called - or paid back.

So, the B3 and the UAW get $17B. They get to spend three more months cobbing together a "workout" that will likely be worse than the joke they handed off last time that holes you could fly a 747 through. There is not and won't be any accountability for the $17B. Or next payment, as yet undefined, to be tossed out by the Dems. And we get: N.O.T.H.I.N.G. Zip. Nada. Bupkis.

Now then, gc, please explain to me just how conservatives - and the country - didn't get "sold out" by President Bush who had the Congressional Republicans lined up waiting to fight for a "pre-packaged BK" along with enough BD's to get the deal done.

Everything was in place except the President's spine.

And to summarize...
1. The GOP could have forced contract concessions from the UAW by requiring a "prepackaged BK" prior to releasing any funds.
2. If the concessions are not gotten now, they most likely won't be gotten in a new administration.
3. The Congressional Republicans were lined up to support the PPBK.
4. BD Dems would have supported it.
5. It would have driven a policy/publicity wedge into the Dems and sent their base off the edge of the cliff.
6. The President unilaterally backed away from the PPBK and is handing over funds with nothing more than the "promise" of a workout plan in three months.

Again, gc, it's a 100% sellout on the part of President Bush.