Can the auto industry borrow AIG's lobbyist?
http://www.freep.com/article/20081111/COL10/81112001/1164/COL10

BY ROCHELLE RILEY ● FREE PRESS COLUMNIST ● November 11, 2008

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WASHINGTON -- No governor could have gotten a tougher crisis to handle
than Gov. Jennifer Granholm has.


The governors of Louisiana and Florida, where hurricanes have
devastated the economy and lives, would disagree.

But if the American auto industry fails -- and many people amazingly
still don’t believe it’s possible -- IT WOULD BE AN UNNATURAL
DISASTER OF DEVASTATING AND INSURMOUNTABLE NATIONAL PROPORTIONS. (Yes,
I’m screaming that part.) And the governor can’t seem to convince
people of the urgency.


So this emergency couldn’t have happened to a nicer governor. And
right now, Michigan doesn’t need nice: We need tough.


President-elect Barack Obama gets the urgency. He urged President
George W. Bush Monday to support immediate emergency aid for the auto
industry. Ironically, his request came on the same day that the
government announced it would purchase American International Group
(AIG) stock to relieve strain on AIG, which has received about $143
billion in aid since September -- without strings attached, without
constant begging, without promises.


But before it will help the auto industry, the administration wants to
demand that failing companies do something they were unable to do when
they were healthier. Oh, and the president wants to tie auto aid to a
free-trade agreement with Colombia.


It isn’t fair. And Michigan needs to borrow AIG's lobbyist, the one
who convinced the administration to write near blank checks to the
insurance company.


Granholm is positioned to help; she’s the only governor on Obama’s
economic panel of advisers. And she’s there, a close adviser to Obama
affirmed Sunday, because Obama wants her to counsel him on the unique
woes of the state with the nation’s highest unemployment rate.


“It was really important to him to have the governor from the state
that is the hardest hit by the economy sitting at the table,” Valerie
Jarrett, a cochair of his transition team said during an interview.
Granholm “is taking a beating, as is her state, and so it’s so
important that he have her counsel and advice.”


But a day later, when the governor got her first postelection chance to
make a national case for auto aid, it, uh, didn’t go too well.


The difference between what she told the “Today” show’s Matt
Lauer and what she should have told Lauer was vast:


When Lauer asked why Americans should give money to the auto industry,
she reminded him that it was a loan.


She should have reminded him that it was a loan, then query why it was
easier to throw money at financial and mortgage crises caused by greed.


When Lauer asked why America should help an industry that has nearly
bankrupted itself because of too-high union costs and unpopular car
designs, she said the industry had negotiated a new contract with the
United Auto Workers that is full of sacrifice -- and that people just
aren’t buying cars.


She should have said that there was little public support for the
$700-billion congressional bailout bill, but Congress bailed first and
made plans to deal later with the greed that led to the sub-prime
mortgage disaster.


When Lauer asked why Americans should believe the auto industry
wouldn’t be back to ask for more money, she said no one wants
that.


What she should have said was that if the auto industry fails and at
least 3 million people lose their jobs, the mortgage and insurance
industries will be back again as foreclosures shoot through the roof.


Obama is right to ensure that Michigan is a part of every discussion
about the nation’s economic crisis. Michigan has not diversified its
economy enough to replace the jobs that would be lost by an industry
meltdown.


And he’s right that the auto industry needs to do what it hasn’t:
improve fuel efficiency.


But making the auto companies write 100 times on the board “I will do
better” while the classroom is burning down makes no sense.


So either the governor needs to ramp up her anger and lobbying skills,
or she can counsel Obama while the state's new lobbyist makes America
understand that the auto crisis is as real as those in the banking and
insurance industries.
 
In your voice
Read reactions to this story
 Newest first Oldest first 
painfultime wrote:

If we had to bailout banks, why did we have to give Paulson a blank 80
bil check? We were doomed from that point. This guy's career was
launched in the Nixon admin. But this lead could tell the story. I heard
that Bush threatened martial law when he summoned the congress to the
white house if they didn't sign off on the bailout. That would have
meant that no election could take place. I will check out that lead and
get the source.

11/14/2008 5:47:29 p.m. EDTIf we had to bailout banks, why did we have
to give Paulson a blank 80 bil check? We were doomed from that point.
This guy's career was launched in the Nixon admin. But this lead could
tell the story. I heard that Bush threatened martial law when he
summoned the congress to the white house if they didn't sign off on the
bailout. That would have meant that no election could take place. I will
check out that lead and get the source.<br /> painfultime 
Recommend  New post  Reply to this Post  Report Abuse  


OctopiAlley wrote:

Rochelle we've already dealt with Granholm who's been promising with
the tax strings attached and despite all the warnings and begging... so
far its been a complete failure, but at least she stuck to her ideals...
so far Blown Away, 2 million jobs!

Don't yell so much, you sound like MC
11/13/2008 3:27:21 p.m. EDTRochelle we've already dealt with Granholm
who's been promising with the tax strings attached and despite all the
warnings and begging... so far its been a complete failure, but at least
she stuck to her ideals... so far Blown Away, 2 million jobs!<br /><br
/>Don't yell so much, you sound like MC OctopiAlley 
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OctopiAlley wrote:

Replying to browndog2:

Replying to oakland:

right on and what has always been wrong with our Governor. When it
comes to a fight with Bishop, the media, or anybody else, she's a
useless milquetoast. compromise and capitualte then stand and die on
principle.Governor and a spokesman who can and will fight, and Granholm
isn't it. see Bonoir out there then her.
Of coarse you would.Any liberal union buttkisser tax raising over
regualtion red taped bureaucrat is so much better than a conservative,
business friendly republican could ever hope to be.
Read Freidman New York Times today. Even liberal partisans can see the
writing on the wall. Not Michiganders. Keep doing it the way you've
always done it.Stay on the same path you've always been on.Keep electing
the same old same old
Not as "changey" as advertized, huh?


The Idea is for you to Change, Liberals resolve to "die on principle"
no matter what the results.

11/13/2008 3:07:33 p.m. EDT<p class="replyingto">Replying to <span
class="author">browndog2</span>:</p><blockquote><p
class="replyingto">Replying to <span
class="author">oakland</span>:</p><blockquote>right on and what has
always been wrong with our Governor. When it comes to a fight with
Bishop, the media, or anybody else, she's a useless milquetoast.
compromise and capitualte then stand and die on principle.Governor and a
spokesman who can and will fight, and Granholm isn't it. see Bonoir out
there then her.</blockquote>Of coarse you would.Any liberal union
buttkisser tax raising over regualtion red taped bureaucrat is so much
better than a conservative, business friendly republican could ever hope
to be.<br />Read Freidman New York Times today. Even liberal partisans
can see the writing on the wall. Not Michiganders. Keep doing it the way
you've always done it.Stay on the same path you've always been on.Keep
electing the same old same old<br />Not as "changey" as advertized,
huh?</blockquote><br /><br />The Idea is for you to Change, Liberals
resolve to "die on principle" no matter what the results.<br />
OctopiAlley 
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freep.com Staff
rriley99 wrote:

CDBpic: Your question is: Why should the automakers improve fuel
efficiency? The answer is: Because if they did, more people would buy
American cars, and selling more cars will increase their bottom line.You
can't make a profit, if you don't sell. That's the basic tenet of
retail. You may think that the problem is gas; the problem is having to
buy so much gas, and more and more Americans are choosing their cars
based on budget and environment instead of look and luxury. R
11/13/2008 10:31:34 a.m. EDTCDBpic: Your question is: Why should the
automakers improve fuel efficiency? The answer is: Because if they did,
more people would buy American cars, and selling more cars will increase
their bottom line.You can't make a profit, if you don't sell. That's the
basic tenet of retail.  You may think that the problem is gas; the
problem is having to buy so much gas, and more and more Americans are
choosing their cars based on budget and environment instead of look and
luxury. R rriley99 
Recommend  New post  Reply to this Post  Report Abuse  


buyamerican55 wrote:

Paulson is a corrupt crook - something needs to be done to take this
guy out of office.
 



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