The GOP’s auto-bailout bungle smells to me like GOP kabuki theater. It probably didn’t start out that way, but it sure looks like it ended up that way. Here’s the big tipoff from a story released Thursday night, after the bailout got shot down in the Senate:
Bush officials warned wavering GOP senators that if they didn’t support the legislation, the White House will likely be forced to tap the Wall Street bailout to lend them money, two Republican congressional officials told CNN earlier.
This is a noteworthy change since the White House and Treasury Secretary Henry Paulson have previously refused to use bank bailout funds to help General Motors (GM, Fortune 500), Ford Motor (F, Fortune 500) and Chrysler LLC.
In this context, "warned" likely translates into "giving them cover to vote how they wanted".
My guess is that Bush and the Republicans were initially going to let Detroit rot, but too many big donors warned the Congresscritters that they could forget about 2010 AND 2012 if they tried that schtick — if for no other reason than that the big donors might not exist by 2010. (See, letting Detroit die just so you can take out the UAW has the rather nasty side effect of taking down America’s already-tottering economy, which would then take down the rest of the world’s economies as it fell. Even the richest folks swallow hard at that prospect.) However, they did want to see if they could find a way to con Harry Reid into helping them trash the UAW. If that didn’t work — well, then the GOP legislators get their base-pleasing ‘no’ votes on record while Bush, who has nothing to lose now, takes the heat from the base for doing what he should have done six weeks ago: Using a small chunk of the TARP funds to save Detroit.
Fortunately, Reid figured this out, probably sometime Wednesday (I’m guessing that he’d heard about Bush’s telling GOP legislators about his plans to dip into the TARP), and decided to stop bothering with negotiations. This is why you’re hearing the Republicans crow, in a typical Republican going-through-the-motions way, about Those Icky Obstructionist Union-Loving Democrats, even as Bush quietly prepares to do what he should have done six weeks ago — and what the Democrats had wanted him to do from the first — and dip into the TARP funds to the tune of $25 billion.
Like I said, it sure looks like kabuki to me.



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I do think that the GOP wanted to be able to say to the base that they’d had nothing to do with the auto bailout for 2010 and 2012. i think they feel this is some sort of advantage to them. With the economy going the way it is, however, I don’t think this is a strategic good move.
First the GOP has just lost the upper mid west for generations. Second somebody must have forgotten that its foolish to mess with union members.
http://www.nola.com/news/index…..ing_a.html
EPU
Anything happen since the electricity went out on Thursday? Been a little cold and dark here in NH… sort of like the last administration. Any scandals? Any nipple slips? Any new Palin jokes? Any new wars…are the old ones still going on? Is BlagoScam is going? Almost 2 days without FDL and I am a bloody wreck.
I guess the thoughtless, greedy unions didn’t get their money /*s
Why anyone would be a Republican who isn’t filthy rich is a continuing mind bender….
I think this latest event is showing a lot of people who are/were traditional GOP members that the GOP has basically become the party of mean people. A co-worker of my husband told him that she’d never vote GOP again,ever..local, state or federal. That’s just huge because she is very conservative and well integrated with teh state and local GOP. But this latest thing just sent her over the edge.
Thanks PW
digg
If Obama joins the Republicans as a denier of history in his effort to cause a political peace movement to the center then justice will be denied for America. Freedom can’t move forward without a trial, many trials.
I still don’t get how Reid comes out of this looking good. He was perfectly willing to trash the union, just not as quickly as Corker, and saddle it with most of the costs of the deal. And if it was kabuki for the Republicans to act the way they did knowing what they did, then I don’t see why it wasn’t kabuki for Reid and the Democrats doing what they did.
Hey, nomolos, I’d fill you in on recent events, but I’ve got to go swimming first, cuz tomorrow southern California’s supposed to get down to the mid-50’s, and there’s no way I’m going outside in THAT weather…
AFAIK, credit default swaps,(CDS) are also a prime stress on Bush. It’s not just the CDS’ on GM. IIRC, it’s that the entire market will reset if GM goes under. Everyone will have to increase their insurance reserves and that will just cause another even more devastating round of “deleveraging.”
Well the fact that the Republicans weren’t acting in good faith can’t help their cause.
http://thenewshole.msnbc.msn.c…..13569.aspx
http://www.youtube.com/watch?v=FItCTApZAN0
Phooey!
So it seems that Republicans love America, as they so often tell us, it’s just that they hate most Americans. That would include Democrats, union members, persons of different hues, persons born in other countries, persons with different religions, persons with different sexual preferences. I’m sure I’m missing some. Doesn’t leave much of America to love, does it?
They are sick puppies, who can hate almost everyone?
Oh damn. Now that’s some Grade-A snark.
By the way: The UAW has a GOP memo that shows the Republicans were planning to stuff this from the get-go — or try to rig it so that passing it would be worse than not passing it (it’s in the third video).
1,855 DAYZ AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen Pheonix Woman and the Firepup Freedom Fighters:
We’ve all known that the entire economic collapse has been created to completely sever the connections between political democracy and economic decision making…and within this understanding, it is not at all clear that Bush will “…be forced to tap the bailout to lend them money.” In fact, the interests represented by the Big 3 will actually profit both politically and economically in the short run from bankruptcy…and the long run at this point favors the oligarchy too.
So I am of the opinion that, far from a Kabuki dance, the political tactics and actions of the elected leadership in BOTH political parties is to find a way to allow the destruction of what is left of organized labor in the manufacuring sector so as to have a completely powerless labor force to serve the new post-oil industrial sector.
The only exotic dancers in this current bailout are in the leadership of the Democratic Party…not only does One Hung Harry Reid still hafta go before the new congress convenes, but our “friend” Chris Dodd has a whole lot of ’splainin’ ta do regarding who he is really shillin’ for in all a this.
KEEP THE FAITH AND PASS THE AMMUNITION, IN THE NAME OF DEMOCRACY HARRY REID MUST GO!!!
Do they have evidence as yet that the Big3 Execs were in on the plan to crush the Unions ?
Yup. That’s something that the TradMed has ignored — I have yet to see a single TradMed source mention that part of the UAW press conference.
Hear ! Hear !
I think the question is were any of them Democrats or Republicans acting in good faith or in our interest?
Citizen Phoenix Woman:
That memo only illuminates what we have known all along: that the goal of the oligarchy through their minions in both political parties, is the complete destruction of organized labor with or without bankruptcy in the auto industry.
This should be used againt Senator Vitter forever. Just like McCain’s campaign catch phrase that he would rather lose an election than lose a war everytime the union mentions Senator Vitter they should say
“He’d rather pay a prostitute than pay auto workers.”
And yet curiously although it was clear that was what they were doing, and we kept repeating here that was what they were doing, Reid, Dodd, the Democrats, and even Gettlefinger didn’t call them on it until after the cloture vote failed.
No actually thats not the question, thats a false equivalency. You show me any evidence that the Democrats had an ulterior motive in helping the Big 3 then we can talk. But the Republicans in their own memo have shown themselves to be opposing the bailout not on its merits but as a union busting move and a first strike against organized labor. There is nothing even close to being comparable coming from the Democrats.
Phoenix Woman,
The GOP wants to sock it to the UAW? May I interject some Economics into this conversation? The big 3 and the UAW are in this mess because consumers aren’t pouring money into their coffers sufficiently enough to keep them afloat. Republicans are actually good friends of the UAW as we don’t feel guilty about buying their Big Trucks and SUV’s. We don’t have interest groups beating on the auto companies to force them to build unprofitable small cars to comply with CAFE standards. You don’t see many F-150 crew cabs rolling down the streets of Suburban D.C. Were you people helpful to the big 3 when you purchased your Volvo?
If Bush fails to bail out the big 2 1/2 and the industry goes down then signs should go up at every closed plant or dealership or local restaurant or whatever saying this closure compliments of Bush, the republican party and __________ (Rethug Sen.)
And yet curiously although it was clear that was what they were doing, and we kept repeating here that was what they were doing, Reid, Dodd, the Democrats, and even Gettlefinger didn’t call them on it until after the cloture vote failed.
So you want them to make an allegation that they can’t back up? Yeah I am sure that would go over well. As soon as Gettelfinger got the memo he exposed it in the press conference yesterday. Funny that you aren’t outraged about the memo, just that it wasn’t found until after the bailout bill failed.
Citizen Hugh:
“…Reid, Dodd the Democrats and even Gettlefinger didn’t call them on it until the cloture vote failed.”
Bingo Brother Hugh, you get another Norske Medal of Citizenship…and I am NOT convinced the Chimpenfeuhrer is gunna “tap the TARP” so ta speak because, I don’t think that the oligarchy has that much ta lose with the bankruptcy of the domestic auto industry.
What has always been fascinating to me about this current economic collapse is that, unlike 1929-1932, we don’t have a lotta wallstreet bunko artists jumpin outta windows and the rulin’ oligarchy is not feelin’ the pince in any noticable way like in ‘29. I wonder if the oil profits and the profits from the stock market fraud of the last 8 years hasn’t been deversified and internationalized…who really owns the Asian automakers?
When did G. get the memo, Hugh?
Frankly, to see how the GOP/Media Complex all but ignored the UAW’s press conference — and how no major mainstream press outlet mentioned the memo — it wouldn’t have done any good. The TradMed will broadcast and amplify every time Mitch McConnell farts near a microphone, but anyone to the left of him is dropped into the media black hole. It takes much, much more effort for Democrats to influence the press because the press is aligned, by temperament, ideology and financial interest, with the GOP.
It may very well have been once this gets talked about on Rachel. The Rethugs need some high priced makeup artists, though, if they’re gonna do kabuki.
I don’t own a Volvo, sorry! But I’d like to be able to get a Chevy Volt for my next car.
Let’s see, Republicans say in private that they would like to trash the union and act to do so publicly while Democrats do not stand up for the union either in public or in private and despite their best efforts to cave to the Republicans on the union eventually fail to do so. You’re right those aren’t equivalent. Instead it is just another repeat of the criminal Republicans and complicit Democrats we have come to know so well.
Mayhaps I’ll open a livery stable. Hire a blacksmith. Rent out trusty steeds and buckboards and such.
Citizen johnnyb:
Thanks but no thankx…the “Economics” you offer this discussion is nuthin more’n ideological clap-trap that has covered for the larceny of the masters of this economic mess…might I add that “bankrupt” and “bankruptcy” are terms that best describe Republicans and the meaningless rationalizations you folks have offered for the last 28 years in leading us over that cliff behind us.
On the evidence, it would appear they love currently employed non-union white conservative straight fundamentalist Christians, preferably men who aren’t college graduates and/or post-WW2 veterans. Oh, and rich sleazebags.
Republicans are actually good friends of the UAW
Then explain the memo
http://thenewshole.msnbc.msn.c…..13569.aspx
The Republicans still control most of the media, particularly the parts where most Americans get their news — namely, evening network TV news and drive-time radio. Plus, the conservative “transmitters” like Limbaugh and Drudge, the people who work to make right-wing themes look “mainstream” and palatable to Joe and Jane Average, have TradMed press buddies that pick up and amplify their messages; the lefties don’t, at least not yet. You don’t have to regularly read Drudge or listen to Limbaugh to know their basic schtick, because guys like Howard Kurtz gladly pass on to the wider world. That’s not happening with Rachel and Jane or any other person to the left of Attila the Hun.
I’d be no good with horses — they’d sense my fear. But I’d be doing a lot more biking, that’s for sure!
Speaking of Volvo, I would hate to see ford have to sell it. Much of fords super safety gains have been as a result of shared technology. Additionally volvo is working on some very interesting elec. vehicles with four motors, one at each wheel. Ford could have access to this.
Seriously why are you obsessing about this memo? It was obvious that the Republicans were out to destroy the union. That no one could say this or notice it until the Republicans put into writing is incredible.
Fuck. I was ready to get off the train before it derails and get a Nissan 370Z.
Then I had to read about the first drives for the 2010 Ford Mustang.
I guess I’m back on, then. But please spare me any grief over my whip of choice.
Oh, I know, but I’m looking to the good elves to change everything with magic.
Did you mean Attila the republican?
That’s a great synopsis. Agree completely.
Little is going to change in society until we replace the current BigMedia with more and more of the New Media. The most important issue of our time IMO, since it has such an effect on everything else.
It must be so hard for the Republicans to do kabuki when they don’t do nuance or subtlety.
This period of financial hard times reminds me of something I wrote almost 20 years ago in a LTE about globalization. At the time they were selling NAFTA as a leveling of the global playing field, intimating that the world’s workers would soon be enjoying the same quality of life as us lucky Americans.
I wrote that it was more like snapping a rug. As the wave moves through the rug, the energy displaces everything on it – the dust motes, cat hairs, baby barf, coins – throwing it all up into the air and where it lands, nobody cares. Sure, the rug is level when it’s over, but the coins are in the baby barf and the cat hair will be gently floating down for years. I asked when we could be expected to find ourselves in covering in cat hair.
I hope you aren’t allergic.
Let’s see, Republicans say in private that they would like to trash the union and act to do so publicly while Democrats do not stand up for the union either in public or in private and despite their best efforts to cave to the Republicans on the union eventually fail to do so
I guess Dennis Kucinich doesn’t count.
What about Representative McCotter
Or maybe Barney Frank
Yeah those crusty Dems didn’t do nuffin
snark
I agree that at least some of the Dems have good intentions, but they certainly are ineffectual. Issue after issue we hear that those big bad meanie Repubs stop everything the Dems try to do. How many years do we have to keep hearing that, even when Dems have some power, before we can conclude that at least the Dem “leadership” wants Liberal reforms to fail?
Look I want Harry Reid tossed out on his azz quite honestly. But for the person I was actually replying to to try ot make it appear as if nobody in the Democratic caucus had the UAW’s back was simply not true. And the one thing that is killing me is how many people don’t even hold republicans accountable anymore because they try to draw a false equivalency between them and the Rethugs. Look at the House vote. People said it was a bipartisan vote but thats bullsh!t. The Democrat pushed the bill through the house so at least Pelosi Dodd and Frank should be commended for that regardless of the WEAK SAUCE Reid is tossing around. I am not Democratic apologist I am a Democratic realist. period.
Ooooooo! Prettay! looks sorta like the early ones. Ummmmmm
corker looked like an Angry Elf at his press conference.
I guess you didn’t ‘get’ the memo. What PW said about the aims of the GOP were spelled out in black and white.
So convoluted is the GOP logic, so patently un-American as to prioritize foreign vendors over American workers, that what they were actually proposing had least successful of socialist underpinnings, i.e., create identical (lock-step) wage structures across all these private (including foreign) companies for workers.
Did you get that part? Did you really grasp which particular dynamic of governance they were suggesting?
To counter the GOP suggestion 9and equally impressive in the opposite direction) was how UAW leadership put an exclamation point on the advantage of a COMPETITIVE wage structure for workers. GOP had to be gobsmacked trying to come up with a way to argue *against* a fundamental tenet of capitalism – competitive advantage. What is it about members of the GOP choking on pretzels?
To top it off, UAW leadership judo-ed the bejeebus outta the GOP’s dubious tack. To paraphrase:
(and this is soooo worth re-iterating, in as mockish a tone as possible):
UAW: “In keeping with your socialized wage structure proposal, yes, please, let’s peel back the cover on the entire sardine can of wage structures in the suggested comparison companies, explore and implement it, top to bottom.
GOP response: *eep*
Beautiful.
Excellent post PW.
Just goes to show what hilarity and emperor-ial disrobing ensues when the GOP hops aboard those 360 goal posts, swinging ever so wildly them ’round, with the ‘noblest’ aim of tanking American workers.
Note to GOP: You’re on the right track. But the answer isn’t either of the two: no regulation v. lock step.
imo, it has something to do with proportional (Think Ben & Jerry’s).
Yeah, it’s supposed to evoke the ‘67-’68 fastbacks, with a little ‘69 in there, too.