December 11, 2008 12:41 AM UTC

Automaker Bailout Progresses, GOP Feigns Bailout Anger

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• by: Colorado Pols

As The Associated Press reports:

Majority Democrats and the Bush White House have finalized a deal to speed $14 billion in emergency loans to struggling U.S. automakers, congressional officials said today.

Strong opposition lingered among some Republicans.

The White House did not go as far as to say the deal was final, although it did report “very good progress.” The measure could see a House vote later today and be enacted by week’s end.

Then, money could be disbursed within days to cash-starved General Motors Corp. and Chrysler LLC, while Ford Motor Co. – which has said it has enough liquidity to stay afloat – would be eligible for federal aid.

It would create a government “car czar” named by President George W. Bush to dole out the loans, with the power to force the carmakers into bankruptcy next spring if they didn’t cut quick deals with labor unions, creditors and others to restructure their businesses and become viable.

Congressional Republicans, left out of negotiations on the package, expressed grave reservations. A handful in the Senate promised to block the measure, which could delay a final vote for days.

Sen. David Vitter, R-La. said the package has an “ass-backwards” approach to curing what ails the U.S. auto industry- giving carmakers money immediately, and only later demanding that they restructure.

Sen. Mitch McConnell, the GOP leader, said his side hadn’t seen the measure as of this morning and wouldn’t agree to immediate votes.

“Republicans will not allow taxpayers to subsidize failure,” he said, although McConnell added that the auto situation would be addressed by the end of the week.

Of course, Sen. McConnell had no problem voting for a $700 billion package to bailout financial institutions.

“Republicans will not allow taxpayers to subsidize failure,” he says. Really? Because you already did that. Just a few months ago. Remember?

Sure, this is a different situation, but let’s not pretend like Republicans are the great defender of taxpayer dollars when it comes to refusing money to corporations.