Congress to Bailout Auto Industry

One Oar in the Water: Congress to Bailout Auto Industry

Does it ever stop?

U.S. Moves Ahead on Loans To Develop Fuel-Efficient Cars; By Josh Mitchell; Wall Street Journal; 29 September 2008.

The U.S. Congress moved Saturday to provide $25 billion in low-interest loans to the auto industry as part of an initiative to accelerate the development of fuel-efficient vehicles.

The Senate voted 78 to 12 to pass a broad, must-pass spending bill that includes $7.5 billion to start the loan program. The House passed the bill earlier in the week, and President George W. Bush is expected to sign it.
The loan program was approved as part of a 2007 energy bill requiring vehicles to have an average fuel economy of 35 miles a gallon by 2020 -- a 40% increase over the previous standard.

But obstacles remain before companies will be able to tap the loan package. The legislation sets a deadline of 60 days for the Department of Energy to establish regulations that would determine who qualifies for the loans and when. But a department spokeswoman has called that time frame unrealistic, saying it would take at least six to 18 months to write regulations.

Comment: So now we have the Department of Energy handing out loans. It’s time we got rid of the thugs in Congress.

Comment: If the States had representation in Congress do you think this would have passed?