Jul 10 2009
Dems: Oops – Never Mind!
With their liberal stimulus experiment a decided failure the democrats have suddenly realized a government forced closure of auto dealers, which will kick thousands of workers now making a living into the street, is probably a bad idea:
A majority of House members have signed onto a bill to reverse the closing of 789 Chrysler dealerships and block General Motors Corp. from closing more than 1,300, while the full House could vote on the bill as early as next week.
The Automobile Dealer Economic Rights Restoration Act of 2009, sponsored by Rep. Daniel Maffei, D-N.Y., now has 221 cosponsors — a majority of the 435-member House. GM’s executives met with Maffei this week.
On Wednesday, the bill had just 202 cosponsors. Late Tuesday, the House Appropriations Committee approved by a voice vote an amendment that also seeks to reverse the dealer closings.
When President Obama, one of the most inexperienced Presidents to take office, put supposed wonder kids in charge of industries they have no clue about, and the answer to all the problems in Detroit was closing many of the brick and mortar sales points across the country, it was obvious some folks did not have a clue.
The problem is Detroit is where the lobbyist money comes from and the union political army come from. That is also where the costs are out of control and where Congress imposes many wasteful policies (some good, most not). So Obama couldn’t go after the real problem area of America’s auto industry – they are too powerful. He went after the dealers who are, politically speaking, spread thin and are too small.
Sadly for the naive Obama administration a distributed political force, once it joins forces in a united national cause, is much more potent inside DC than a power house kingdom in one state or district. Watch for a lot of confusion, backtracking and finger pointing this summer as the whole Hope & Change thing falls apart under its mistaken policy decisions.
Update: The beginning of the accountability phase for Obama and the Dems is here. Checkout CBS News and Rich Lowry at National Review. When they seem to be saying the same thing, you know it is bad for the Dems!
One of the biggest ironies here is that whether or not to close these dealerships should always have been just a business decision.
BUT now that this government owns GM and Chrysler (along with their pet, the UAW) there are no more business decisions being made. Everything these companies do is political now, and there is an open invitation for Congress to insert itself every step of the way.
Even if this particular decision is right, the move towards managing these supposedly private businesses from Washington is still a disaster.
What could go wrong? GM’s new signature car, only $40,000, battery operated auto that needs coal to recharge. I just can’t get Germany’s peoples car out of my mind.
House Democrats in swing districts are trying to cover their bloody behinds, IMO.
They fear they are going to take the blame locally from the Obama Administration auto take over caused dealership closures. So far they have gotten their leadership to sign on for a dealer bail out bill.
The problem with a “Make it never was” bill is that the dealership closures have already happened in many areas.
There are several 20 plus year old GM and Chyrsler dealerships I passed every time I go between Houston and Dallas, Tx that are now all closed.
With auto sales down 30%, they are not coming back.
I just heard that next week GM is floating a bond, hoping that the general public will buy this bond giving them the operating money they need to move forward. Now who in their right mind would buy into GM. We already know what bond holders get for their investment. This is where the rubber meets the road. It is going to be a big laugh. Obama and capitalism……………….not so cool!
I used to be a fan of General Motors. I will never buy a product of theirs manufactured after 2008.
GM Bonds – LOL! GM & Obama just went through a 3 month dog and pony show proving that whenever the money gets short, the bondholders will be stiffed and the unions will be handed all of the money!!!
I can’t decide which will be a worse be, GM Bonds or California IOU’s.
You cannot sell what people will not buy no matter how much government cash is thrown at it.
The mini Cap&Trade-mobiles Obama’s flunkies are pushing down the America’s throat via “Government Motors” won’t sell.
I have been seeing a lot of reports in sub-national MSM news media outlets of prices climbing on used SUV’s because of the shut down of new GM & Chrysler SUV production running head on with the demand by large families and small businesses to have vehicles with a lot of passenger/cargo space.
An e-mail acquaintance of mine sent me the following when I mentioned that to him:
>The “car guy,” who comes on Dallas talk radio on Saturday
>mornings has mentioned the very high prices for used cars and
>that the hybrids aren’t moving, in fact, one of the men I am
>working with just bought a program Prius with 1600 miles on it
>for $10K under sticker. Last year at this time he would have
>had to wait in line to get a similar car.