Big Three bailout -- the devil is in the details
WASHINGTON -- So now, suddenly, the debate over the auto bailout seems to be all about details and options.
At a six-hour hearing Thursday that often moved as slowly as a '74 Pinto, senators from both parties kept throwing out alternatives to writing the $34 billion blank check Detroit is seeking.
Options spelled out over the course of the hearing included a Treasury Department or Federal Reserve bailout using existing funds or a mandate that some of the recently rescued banks come to the aid of the auto companies. Meanwhile, Sen. Charles E. Schumer, D-N.Y., suggested a two-tier approach in which auto companies would get immediate loans and federal oversight, and more money later if they meet preset conditions.
So, which should it be?
Or shall we take our chances and bet that Mark Zandi, of Moodyseconomy.com, is wrong when he suggests that letting Detroit die would cost taxpayers several times more than any bailout?
-- Jerry Zremski
