Where's my bailout?
It's desperation time for the Big Three automakers. They are awash in gas-guzzling vehicles nobody wants to buy, bleeding red ink and running out of cash. So it should be no surprise that when Congress returns next week, the companies and their unions will put on a full-court press to win approval for $50 billion in federal loans to be used to re-engineer and retool their plants for a new generation of energy-efficient vehicles.
With the auto-dependent states of Michigan, Ohio and Indiana up for grabs in November, the Big Three hope to use the political calendar to their full advantage.
They've already won the backing of both of the presidential candidates, along with House Speaker Nancy Pelosi, who promises quick action this fall. And while the White House has indicated its reluctance to involve the government in the rescue of yet another industry, it may have a hard time explaining why the automakers are any less deserving of a "bailout" than Wall Street investment banks or Fannie Mae and Freddie Mac.
Even before top industry executives arrive in Washington later this month to lobby for their program,
General Motors' vice chairman, Robert Lutz, who never misses an opportunity to put his foot in his mouth, was telling reporters in Chicago last week that the industry "deserves" government loans because of all the challenges that have been inflicted upon it .
In fact, it's hard to imagine an industry less deserving of government help.
