Posted by Matt Hawes on 12/02/08 11:40 PM Last updated 12/03/08 07:28 AM   [Newer: Supporter Blog Spotlight] [Older: Bruce Fein Discusses "Continuity of Government"]

Auto CEOs have returned to Congress, this time asking for over $30 billion instead of the original $25 billion number.

Chrysler wants $7 billion before the end of the month. GM is at $18 billion in requests ($12 billion loan, and possible $6 billion credit line), and Ford is asking for a $9 billion taxpayer credit line.

To supposedly show they are serious about cutting back, the executives are driving hybrid vehicles to D.C. this time around instead of taking private jets, and all three have agreed to a year of $1 salaries.  So, a good question might be to ask why they didn't take these steps when they weren't begging for your money.

It would also be interesting to find out how much money was spent preparing these proposals and for the executives to present themselves in D.C.  I'm sure a lot of that could have gone toward righting their ships.

The Houston Chronicle reports on the latest developments here.

Posted 12/03/08 12:20 AM triplec110h Glendale, CA

Ironic that even if they do get the money, many of their past customers will never buy from them again, because of this.

Posted 12/03/08 12:42 AM apoelstra Surrey, Canada

I love how three men worth millions of dollars wasted ten hours driving to Washington - all for the media, who apparently couldn't tell a relevant issue from a hole in the ground. Here's the LewRockwell.com commentary: http://www.lewrockwell.com/alston/alston53.html I love the first sentence. It proves my point quite nicely: Ron Paul could become a meth addict for five years and still be more capable of economic analysis than most people.

Posted 12/03/08 01:09 AM svnty3stingray Santiago, Chile

I enjoyed the Lew Rockwell commentary, thank you. The labor unions, government mandates and a poor consumer product line have caused the failure of the US automakers. It's really unfortunate, we would all like to see American auto business survive and prosper, but it's not the place of a taxpayer or his representative to become a bank lender. Chrysler paid it's way back early from a similar loan situation in the 1980's and did so ahead of schedule. I could care less if the CEO's walked from Detroit, my representatives should not have even seen them. Why can't they get their employees and suppliers to loan them money or become investors if it's worth saving?

Posted 12/03/08 01:25 AM C.B.Ross Everett, WA

American cars made it all the way from Detroit to DC?!?

Posted 12/03/08 01:53 AM apoelstra Surrey, Canada

I assume they pulled over and bought new ones halfway through. ;)

Posted 12/03/08 03:00 AM DaleInVirginia Lynchburg, VA

ooops!!! You are wrong about the amount ... it is now 34 billion and I briefly saw somewhere ... when I went to find the article again it was gone ( not necessarily that it was pulled or something, more I probably just forgot where I saw it) .. that the overall running total of bailout from Congress and the FED .. since it is ALL OUR MONEY is over 8 TRILLION dollars. So what's another ten billion here or there. It is almost like a bad dream that these amounts of money (billions and trillions) were really never part of our everyday vocabulary ... now, it seems we use them in the same fashion that we used to use "hundreds" and "thousands" a few years ago. The parallels between the events today and that of the events in the 1930s in Germany (the so-called Weimar Republic) are becoming more and more striking. The one caution I have for all when looking back at history is to not necessarily look and fixate on the details of the events and outcomes ... rather look and understand the patterns. When you mention pre-war Germany and the similarities .. people begin to immediately look for a modern Adolph Hitler ... While it is true that history does repeat ... it perhaps more correct to say that the patterns that drive history are the things that repeat ... what those patterns produce as a result, tend to be more a product of the moment in time. Dale

Posted 12/03/08 03:11 AM DaleInVirginia Lynchburg, VA

It seems that there is at least one other voice in Washington that is sounding the truth .. aside from Congressman Paul ... The head of the FDIC, Sheila Bair .... Just like with EVERY other thing the government involves itself with ... (oh, Vietnam and Iraq some instantly to mind) .. it NEVER seems to have an exit plan ... AP FDIC head: gov't rescue plan needs 'exit strategy' Tuesday December 2, 5:46 pm ET By Marcy Gordon, AP Business Writer FDIC Chairman Sheila Bair says government's financial rescue plan needs 'exit strategy' WASHINGTON (AP) -- The head of the FDIC said Tuesday the government needs to devise an "exit strategy" for its massive financial rescue plan to avoid artificially propping up banks and other institutions over the long term. Federal Deposit Insurance Corp. Chairman Sheila Bair made the comments at a conference of corporate executives. Her agency has played a key role in the financial bailout, guaranteeing potentially as much as $1.4 trillion in debt issued by banks and raising the limits on deposit insurance for bank accounts. But Bair has broken with the Bush administration by repeatedly saying more aggressive government action is needed to help millions of struggling home borrowers avoid foreclosure. "I'm a capitalist. I believe in markets," Bair said in response to questions at the conference sponsored by Fortune and Time magazines. The far-reaching government guarantees extended under the rescue program -- now including $250 billion set aside for the Treasury to buy stock in U.S. banks, hundreds of billions in aid to giant financial institutions and hundreds more billions in special lending facilities to banks -- must be carefully assessed, Bair said. "We really need to think through the exit strategy because (government guarantees) could become a crutch," she said. Weaker financial institutions "need to be allowed to fail," Bair added. The government needs to decide which banks and other institutions receive the financial support, and eventually, "How do we get out?" she said. Treasury Department spokeswoman Jennifer Zuccarelli declined to comment on Bair's remarks. The potential cost for the government's efforts to contain the financial crisis now approaches $7 trillion and is climbing. That figure includes large commitments of funds by the government to guarantee certain debts, although those funds may never actually be spent. But still, the overall figure reflects the huge liabilities the government is taking on in response to the meltdown. The cautionary remarks by Bair, an independent regulator, were similar to comments made by some banking industry representatives in mid-October, when the government's rescue programs were rolled out. They suggested it could be difficult for banks to wean themselves off federal debt guarantees when they expire in 2012. Bair, who describes herself as a moderate Republican, has garnered support and kudos from Democrats for her position on mortgage foreclosure relief. Democratic leaders in Congress have endorsed her proposal to use $24 billion in government bailout funds to help 1.5 million borrowers avoid foreclosure by guaranteeing modified home loans through the end of next year -- a move opposed by Treasury Secretary Henry Paulson and the Bush administration. "We continue to have discussions" with the Treasury Department on the issue, Bair said at the conference Tuesday. The FDIC also has briefed the transition team of President-elect Barack Obama on the proposal, she added. "I'm hopeful that the current or future administration, or perhaps some combination of both" will be able to adopt such a plan in hopes of preventing some additional foreclosure distress, she said. Bair's name had been floated as a possible Obama choice for Treasury secretary. But the president-elect last week designated Timothy Geithner, the president of the New York Federal Reserve, for that position. Bair, whose term extends to 2011, reaffirmed Tuesday that she is "quite content where I am." She has pledged to work with the incoming Obama administration in whatever role they desire for her. A recent rescue move for banking titan Citigroup Inc. called for a fresh injection of $20 billion of government funds into the company, as well as for the government to shoulder the potential risk on hundreds of billions of dollars of soured assets. Under the plan announced Nov. 23 -- hammered out in marathon discussions led by Paulson and Geithner and in which Bair also participated -- Treasury and the FDIC will guarantee against the possibility of big losses for Citigroup on up to $306 billion in high-risk loans and securities backed by home and commercial mortgages.

Posted 12/03/08 03:13 AM MarilyninLakeJackson Lake Jackson, TX

So let the car makers go bankrupt, and bail out the lowly people who will lose their jobs. To heck with these billionaires who, bless their hearts, are now willing to either fly commercially or drive and make the sacrifice of giving up their private jets (only temporarily I'm sure, if at all). Or where are the rich volunteers all over the country who could help them out, like Trump, Perot, Bill Gates, celebrities in Hollywood. That would be the real American way, or it SHOULD be the real American way - people helping people instead of the federal government bailing everyone out. These rich volunteers are too busy either building their own empires are going all over the world to help out other countries, when our own is falling apart. Sick of it all.

Posted 12/03/08 05:13 AM Heather D Port Byron, IL

It is rather ironic that once you add in all the benefits that the UAW receive, their hourly wage is between $50 and $75 an hour. Taxpayers, who on average earn less than half that wage are now being "asked" to subsidize people who far surpass them in earnings. I have seen nothing in the Big 3's proposals that includes cutting back on the wages or benefits of the union workers. I have no desire to see these companies fail, and I wish that things were rosy for the employees AND the businesses, but the reality is that they cannot turn a profit with the business model they are currently following, and it is immoral to rob average Americans of their hard-earned dollars to subsidize failing companies.

Posted 12/03/08 05:19 AM TakeBackVermont Hartland, VT

If the US government is stupid enough to give them this bailout just because they drove down in a hybrid car then I just might puke. Think about it, the CEO's would laugh so hard at us and go right back to their jets all the other dodads they own.

Posted 12/03/08 06:00 AM mstebbins Excelsior, MN

I can't help it. I'm picturing Flintstones cars. With bare feet, of course.

Posted 12/03/08 06:47 AM aaronpriest Lee, ME

If they get bailed out, I'm going to demand Congress to ship me a new vehicle the next day. If we're going to be socialistic, let's really do it. I've paid for it with the money they stole from me.

Posted 12/03/08 06:53 AM mstebbins Excelsior, MN

A cute ploy would be to line up at the GM dealerships with your tax returns and a request for a commensurate vehicle. However this likely works better theoretically and rhetorically than in actuality.

Posted 12/03/08 07:08 AM doug4all Clarkston, MI

As one whose livelihood depends on the continued existence of the U.S. auto industry, I find myself very torn on this issue. I do not believe the government should be involved in the marketplace, but on the other hand, their involvement has caused the current credit crisis that has affected the whole of the U.S. economy. I think I learned in kindergarten that you should clean up your messes, and now I believe the U.S. government needs to clean up theirs. Government representatives pointing fingers at private industry for acting rationally by trying to maximize private profits when they knew they could socialize the losses is a joke. They should be pointing the finger back at themselves; also, they need to immediately rescind all trade agreements, get us back on sound money, and provide business with an environment where true competition can again prevail. This is the only prescription that will ensure the survivability of U.S. industry; not the patchwork quilt of regulations, government mandates, and subsidies we now are saddled with.

Posted 12/03/08 07:09 AM Carl Hessig Louisville, KY

Dear Congressman Yarmuth Now that bailouts for the automakers are almost a given, (they did agree to a $1 salary after all) I would expect that all lawmakers that vote for the bailout to also agree to a $1 salary. I would also expect any Governor from any state that receives a bailout to agree to the same $1 salary. VOTE NO TO BAILOUTS

Posted 12/03/08 07:37 AM Felegund Jonesville, KY

Carl, that's beautiful. Pity that (no offense), Yarmuth doesn't seem like he'd be that responsive to such a request.

Posted 12/03/08 07:58 AM BruceKoerber Cedar Rapids, IA

An interesting prospect! Newspapers (like the Houston Chronicle) that exercise even a moderate degree of independence by merely reporting the obviously sleazy goings-on in Washington, DC find themselves respected by individuals seeking unbiased news. Ultimately they are businesses needing to make a profit so they will respond to this increased prestige by continuing to exercise their independence (until the unConstitutional coup acts desperate and begins to coercively pressure this business enterprise that is simply trying to exercise a free press). If enough businesses in the media have ethics and independence the unConstitutional coup will have to become blatantly totalitarian which should cause the blood of inherently liberty-loving Americans to boil. This is another one of the reasons why the revolution to return to a Constitutional Republic will grow and succeed.

Posted 12/03/08 09:23 AM ifc69 Midland, MI

This just about sums it up right here... http://www.theonion.com/content/node/35691

Posted 12/03/08 09:43 AM CamdenForLiberty Scottsdale, AZ

You know what would fix this? Lobbyists! That has worked thus far, right?!?!...

Posted 12/03/08 09:48 AM ifc69 Midland, MI

Who is going to bail out the federal reserve when the ink and paper industry goes bankrupt?

Posted 12/03/08 10:06 AM Fu Manchu Belleville, MI

Amen, doug4all, amen

Posted 12/03/08 11:00 AM erkme73 Odessa, FL

I just signed up here, and have not yet searched the site - so forgive me (and redirect me) if this has been previously discussed. In my dozens of daily conversations with customers from all 50 states, I find such a seething anger at what the Federal Government is doing, that the push for a revolt/march on Washington is seeming more and more plausible. Is anyone giving this any serious thought or effort? At what point do We The People turn our complaints into actions? Seriously. It's one thing to have your blood pressure bump 40 points at every news story, and talk ourselves to death. It's entirely different for us to REVOLT against the machine! I just did a quick search on Google trying to find any coordinated efforts and come up empty. What if we had a million man (armed) march on DC? When members of congress drop everything to head out the door one of their endless breaks, we either prevent them from leaving, or (ideally) we keep them from coming back. What if congress were more afraid of the people than of the corporations they bail out? What if we finally took our country back? What if...

Posted 12/03/08 12:03 PM Wright in Ohio Hubbard, OH

Lets see, we will give the US auto makers 30+ billion so they have the have the money to complete their moves of manufacturing offshore. Yeah, that's a good plan.

Posted 12/03/08 12:10 PM Fu Manchu Belleville, MI

Wright: Blame our government for acts like NAFTA. erkme: Welcome aboard!

Posted 12/03/08 12:59 PM Brian Maple Grove, MN

This really puts things into perspective... http://consumerist.com/5101440/2008-bailout-costs-as-much-as-several-large-a nd--famous-government-projects-combined the pie charts really show you how bad this has gotten.

Posted 12/03/08 1:07 PM BDiego San Diego, CA

Banks are robbing the Fed and taxpayers Iraq-contractor style: http://finance.yahoo.com/tech-ticker/article/138232/TARP-Trouble-GAO-Rep ort-Rips-Internal-Controls-Bank-Monitoring?tickers=gs,bac,jpm,wfc,xlf,c,ms No w the big 3 want their cut. It's funny how Honda, Toyota, and Ford all lost 30%-35% in sales and none of them are demanding a bailout (Ford will take one if it's tossed out). But you have two of the worst businesses in America - GM and Chrystler - threatening and making demands as if America was their hostage. When was the last time you heard such whining from a man in a tuxedo and top hat at the golden soup line?

Posted 12/03/08 1:25 PM Knighted Hudson, NH

I'm with erkme on this one.

Posted 12/03/08 8:42 PM Mike in Virginia Fredericksburg, VA

I just can't wait to see Al Gore heading off to global warming...oops, I mean climate change...conferences in a Prius. All of this is so much bull***t. Heather D: beautifully stated. Auto workers make more than I do: why in the world should I have to subsidize them????? The world has turned upside down. What I was raised to believe were virtues get you punished; what I was raised to believe were vices get you rewarded. Why should anyone even try any more?

Posted 12/04/08 09:50 AM Spencer Rocky Mount, NC

Did you guys notice the 50 million spent on lobbying by the Bit Three this year? Does this iritate you or what? Let them go bankrupt and they can reorganize and start contract negotiations all over again. This looks like the only reasonable course. Otherwise they'll be broke again in a couple years.

Posted 12/04/08 2:33 PM websmith Morgan Hill, CA

By stepping outside of the authority granted to them by the Constitution, meddling in private industry, and in a large part causing the economic problems that have adversely affected the domestic auto industry, the federal and state governments have made every taxpayer liable should they fail. This money should be in the form of a settlement instead of a loan. By doing the same thing in the banking industry, they have also made us liable for bank failures. By then supporting the banks in their illegal and predatory loan activities the government is complicit and we are now liable to every home owner who's property is foreclosed on and every business that has been forced to close because of banking practices. http://ewebsmith.com/gov/WrongBusiness.html