Paulson: Don't use bailout money for automakers

[Terri]

By JULIE HIRSCHFELD DAVIS
Associated Press
November 19, 2008

WASHINGTON (AP) -- Treasury Secretary Henry Paulson told Congress on Tuesday that the administration remains firmly opposed to dipping into the government's $700 billion financial bailout fund for a $25 billion rescue package for Detroit's Big Three automakers, no matter how badly they need the help.

"There are other ways" to help them, Paulson told the House Financial Services Committee as the bailout bill clung to life support on Capitol Hill.

Committee members grilled Paulson on the administration's stance that the $25 billion must come from separate legislation passed in September that Congress designed specifically to help auto manufacturers retool their factories so they can make more fuel-efficient vehicles.

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[oldjules]

There are other ways" to help them, Paulson told the House Financial Services Committee as the bailout bill clung to life support on Capitol Hill

If they bailout the big three it will open a can of worms that will have every industry wanting money to continue business.
I think an independent auditor could find the resources and make some management changes that would keep the companies on line.

[MamaCat]

Maybe Paulson is beginning to see the light. This is one of the first things he had done right since blackmailing congress and the President into putting him in charge of something he seems to little understand.