$350 Billion for Citigroup – Not a Penny for the Auto Industry!

http://www.reuters.com/article/ousiv/idUSTRE4AJ45G20081124?sp=true

The double standard and hypocrisy in Washington simply defies belief!  When the domestic auto industry, upon which one out of every ten jobs in America is directly or indirectly dependent, needs a helping hand – a mere $25 billion – to survive the financial crisis, they are forced to appear before Congress for three days of hearings and are berated, belittled, mocked and sent home without a penny – with nothing more than a demand for a “turn-around plan.” 

Then along comes Citigroup.  Without a single congressional hearing or a request for any kind of plan, the government lavishes them with $350 billion!  ($25 billion already given to them, followed by $306 billion to back up their bad debts and another $20 billion injected in the form of capital.)  Not a peep of protest about Citigroup’s corporate jets or excessive executive compensation.  No turn-around plan.  Nothing.  

Add this to the AIG bailout and you have a total of $500 billion for just two companies, twenty times what the entire domestic auto industry has requested.  Yet the government won’t provide a penny to help them.  Obviously, the Big Three would have been much better off going to Citigroup and asking for the money.  Why should Citigroup deny them?  They can pass out money like candy and the government will be there to bail them out, no questions asked! 

The anti-manufacturing bias of the U.S. government is clear.  They force trade policies down our throats designed to destroy our manufacturing base, mock us as “protectionists” when we complain, and subject us to public humiliation when we ask for a little help.  On the other hand, they bow down before the financial industry as though they were gods, regardless of how badly the industry is mismanaged, completely ignoring the fact that they are 100% responsible for the global economic melt-down.

What is the “plan” that Congress wants to see from the auto industry?  The following three-step plan would surely do the trick:

  1. Donate as much money to congressional election campaigns as financial companies have.
  2. Double donations in the following elections.
  3. Double them again.

I’m sure that’d do the trick.

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2 Responses to $350 Billion for Citigroup – Not a Penny for the Auto Industry!

  1. 4fooey says:

    Pete, you’re right the amount for Citigroup is astounding when compared to the lack of help for auto makers. Citigroup have been one of the worst culprites in the few years leading up to the current financial crisis – admittedly only one of the companies in a banking industry that has run amok in our economies. It’s surprising to me (a Brit) that the US government, and one that is lead by an ‘oil man’, does not want to support the auto industry given that the more cars there are the more demand for oil there is (ignoring for a minute humanity’s dire need to get away from using so much oil for transport/power generation).

    And in any case the auto industry is one of the core manufacturing bases in the US. Thinking ahead, when we will be using alternative fuels or energy sources to drive cars, it would be good for the US that they still have an auto industry! (and all of the jobs, direct and indirect, that go with auto manufacture)

  2. Pete Murphy says:

    4fooey, thanks for stopping by. There definitely seems to be an anti-manufacturing bias in the U.S. government, as though it is work for peons – something beneath our dignity.

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