President Bush and the Treasury Department signaled on Friday that they would consider dipping into the $700 billion bailout program for financial institutions to aid the Big Three car companies, after Republican senators refused to support a compromise proposal to rescue the automakers.
“Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms,†Dana Perino, Mr. Bush’s spokeswoman, said in a carefully nuanced statement released minutes before the financial markets opened in New York. “However, given the current weakened state of the U.S. economy, we will consider other options if necessary — including use of the TARP program — to prevent a collapse of troubled automakers.â€
The Treasury Department promptly indicated that it would provide short-term relief to the automakers. “Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry,†a Treasury spokeswoman, Brookly McLaughlin, said.
For a moment, try to ignore the fact that this money was originally set aside by Congress to aid financial institutions and not automobile manufacturers, what exactly is the point of having Congress debate this bill if its actions (or lack thereof in this instance) are irrelevant? To President Bush, the fact that the required votes in Congress do not exist (from ironically, his own party) is merely a technicality in getting what he wants. The administration will simply divert money previously approved by Congress for other causes where it sees fit. The very concept of checks and balances has been destroyed with this being only the latest example.