What Should Be Done to Help Auto Industry: Experts
Congress and the White House are hoping to reach a final deal to provide $15 billion in loans to troubled U.S. automakers. CNBC asked market insiders and members of Congress to share their insight on a bailout for the industry.
Meeting Taxpayer Halfway
"You've got to have the commitments upfront. You can't have this 'give me the money and we'll talk about it.' The executive and the labor side have to be willing to lay everything on the table to save their jobs. You can't ask the taxpayer to bail them out if they are not willing to meet them halfway."
- Rep. Brian Bilbray, D-Calif.
Fate of Big Three Management
“I don’t think in any situation where the public is putting up taxpayer money should the senior management of these companies in any way benefit. I think they should be all let go and a new team try it. What could be the harm? We know this team that’s in place, (and) we know they haven’t done a good job.”
- James Chanos, Kynikos Associates Founder & President
Sen. Ensign: We're 'Socializing Our Economy'
“We’re just going down further and further towards socializing our economy, and we should all be very concerned about this, because then it’s becoming the government picking the winners and losers instead of the market.”
- Sen. John Ensign, R-Nev.
Sen. Gregg: $15B Just a ‘Down Payment’
“This is just a down payment on what will be a very big number that I suspect we’ll be hit with early next year, and for the taxpayer to put those type of dollars up we’ve got to get something in return. What I think we need specifically in return is that all the stakeholders readjust their present positions, and we put these companies in a place where they can make cars that are viable and that people want and also affordable and that are priced in a way that makes sense.”
- Sen. Judd Gregg, R-N.H.
Will Auto Bailout Pass?
“I think it would certainly pass on January 5, but the auto companies don’t have that long. I say January 5, because that’s when we get seven or eight Democratic senators. It will pass the House of Representatives. As to the Senate, there it might be subject to a filibuster. If it had an up or down vote it would pass. Whether GOP senators, some of them lame ducks, are going to delay the bill through the filibuster rule, I don’t know.
- Rep. Brad Sherman, D-Calif.
More news from CNBC.com:
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- Highlights of Democratic Plan