Chrysler has announced that it will shut down all plants for at least a month, with the last shift ending tomorrow. This comes off the heels of a failed bailout legislation, that was defeated handily by the Senate due to failure of the UAW to budge on a labor compromise. It also follows GM, who announced it will idle over 20 plants in a cost cutting measure.As a result, the White House has accelerated plans to "rescue" the automakers, hoping to get something done before Christmas. It is expected that the White House will attach certain conditions on any potential bailout, with a pre-packaged bankruptcy reportedly on the table, but it is unclear what exactly the White House will demand from the automakers in exchange for taxpayer Federal Reserve notes. The figure of 14 billion, the original amount debated in Congress, is likely to balloon to somewhere in the neighborhood of 40 billion, a number that is most certainly dreamed up out of thin air.
It's likely that Dictator Hank Paulson will now assume the role of the ridiculous "car czar", since the White House is choosing to sidestep Congress in another unconstitutional stunt to please the elite big wigs in Detroit. However, it will be interesting to see how a potential bailout is funded. Only 15 billion remains in the TARP fund, enough for the original bailout plans, but any additional funds will require Congressional release of the remaining 350 billion, something that Paulson says he will not persue before leaving office.
Clearly, however, Congress has become increasingly irrelevant as the tyrannical White House does whatever it wants, regardless of the opinion of Congress and the people of this country. Any act of Congress is simply a formality and a grand showing of political theater at this point.
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