
As long as Mitt Romney publicly claims credit for the auto industry's recovery, he's going to put his fellow Republicans on Capitol Hill in an awkward position. Nearly all of them have attacked the Obama administration's bailout in exceptionally harsh terms, despite the fact that the administration's actions are widely understood to have saved the industry.
In the Capitol on Tuesday, two Senate Republicans struggled to respond.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Airport Security Uproar Frustrates White House Advisers
The Washington Post reports: "For a White House often accused of being lax on national security, the uproar over invasive security techniques at airports is a head-snapping swing in the other direction...'Everyone is a little bit surprised that less than one year after a suicide bomber was sent to the United States to blow up a plane over Detroit with a bomb in his underwear we would be having the debate that we're having right now,' another administration official said Monday."
Obama's Day Ahead
President Obama will receive the presidential daily briefing at 9:15 a.m. ET. President Obama and Vice President Biden will depart from the White House at 9:55 a.m. ET, and depart from Andrews Air Force Base at 10:10 a.m. ET. They will arrive at 11:45 a.m. ET in Peru, Indiana. At 1:20 p.m. ET, they will tour the Chrysler Indiana Transmission Plant II, and deliver remarks to workers at 1:35 p.m. ET. They will depart from Indiana at 3:45 p.m. ET, arriving at Andrews Air Force Base at 5:10 p.m. ET, and back at the White House at 5:25 p.m. ET.
The guy who oversaw the Obama administration's bailout of the auto industry for seven months doesn't think he'll ever see the day when a car company can survive on selling electric cars alone.
"Probably not in my lifetime," Steve Rattner, Obama's former car czar, told TPM. "Electric cars are going to be a very, very important part of our future but we should not assume, hey, will be an important part of the car companies' profits."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Democrats and union officials are seldom pleased with House Minority Whip Eric Cantor. But today they're particularly unhappy.
In attacking President Obama's economic policies yesterday, Cantor asked, "So as President Obama prepares to take another victory lap, who exactly is [he] celebrating with?"
The answer: auto manufacturers. Whoops!
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Axelrod to Democrats: Blame the GOP
White House Senior Adviser David Axelrod told Senate Democrats to go on offense against the Republicans in this November's election. "We're not interested in re-litigating the past but we don't want to relive it either," Axelrod said after a closed-door strategy session. "People need to know that when they cast that Republican vote they're casting that vote for those same discredited policies that punished the middle class and created this crisis in the first place."
Obama's Day Ahead
President Obama will depart from the White House at 9:30 a.m. ET, then will depart from Andrews Air Force Base at 9:45 a.m. ET, arriving at 11:05 a.m. ET in Detroit, Michigan. He will tour the Chrysler auto plant at 11:50 a.m. ET, and will deliver remarks at 12:15 p.m. ET. He will then tour the General Motors auto plant at 12:55 p.m. ET, and deliver remarks at 1:40 p.m. ET. He will depart from Detroit at 3:10 p.m. ET, arriving at Andrews Air Force Base at 4:25 p.m. ET, and at the White House at 4:40 p.m. ET.
Obama Reappoints Bernanke To The Fed
President Obama took a moment out of his vacation to deliver a statement to the press this morning, announcing that he is reappointing Ben Bernanke as chairman of the Federal Reserve. "As an expert on the causes of the Great Depression, I'm sure Ben never imagined that he would be part of a team responsible for preventing another," said Obama.
Cheney Blasts Obama, Says Interrogators "Deserve Our Gratitude"
Former Vice President Dick Cheney has released a statement condemning the new investigation of Bush-era interrogation practices. "The people involved deserve our gratitude. They do not deserve to be the targets of political investigations or prosecutions," said Cheney. "President Obama's decision to allow the Justice Department to investigate and possibly prosecute CIA personnel, and his decision to remove authority for interrogation from the CIA to the White House, serves as a reminder, if any were needed, of why so many Americans have doubts about this Administration's ability to be responsible for our nation's security."
Roll Call: Hope For Bipartisanship Lingers, But Reconciliation Talk Increases
Roll Call says that while Senators are holding out hope for a bipartisan deal on health care, the talk of using budget reconciliation to produce a Democrats-only bill is rising: "With bipartisan talks yielding no results, Democrats have urged President Barack Obama to abandon efforts to win Republican support and instead push a bill through on party-line votes."
Obama On Vacation
President Obama and his family are spending the week at Martha's Vineyard, and do not have ay public events scheduled. Deputy Press Secretary Bill Burton said Obama is hoping for a quiet time: "He wants you to relax and have a good time. Take some walks on the beaches. Nobody's looking to make any news."
Report: White House Advises Dems On Health Care Protests
The Associated Press reports that White House officials have advised Democratic lawmakers on how to respond to disruptions at town halls, and promised a strong response if any lawmaker faces direct criticism in TV advertising. This reportedly took place at a closed-door session before members went home for the recess.
Obama's Day Ahead
President Obama will deliver remarks on the economy at 1:15 p.m., from Henderson Hall at Fort Myer. At 5 p.m. ET, he will meet with Sen. Chuck Schumer (D-NY).
DNC Web Ad Blasts Republican "Angry Mobs"
The Democratic National Committee is expanding its public relations push against the Tea Party crowds that are interrupting town hall meetings, with this new Web ad tying the right-wing base to the GOP establishment:
"Now, desperate Republicans and their well funded allies are organizing angry mobs -- just like they did during the election," the announcer says. "Their goal? Destroy President Obama, and stop the change Americans voted for overwhelmingly in November."
Obama's Day Ahead
President Obama will be traveling today to Warakusa, Indiana. He will arrive at South Bend Regional Airport at 11:10 a.m. ET, and will deliver remarks on the economy at Monaco RV in Warakusa at 11:55 a.m. ET. He will depart from South Bend at 1:35 p.m. ET, and will arrive back at the White House at 3:20 p.m. ET.
Senate To Take Up Sotomayor Confirmation
The full Senate is set to begin debating the Sonia Sotomayor nomination today, with a final vote as early as Thursday. Sotomayor is on track to win confirmation by a comfortable margin, with all or nearly all Democrats plus a few Republicans supporting her.
Obama's Birthday Ahead
Today is President Obama's 48th birthday -- but in terms of his schedule, it's a regular work day at the White House. Obama will meet at 11:05 a.m. ET with Dave Rehbein, the National Commander of the American Legion. At 12 p.m. ET, he and Vice President Biden will have lunch with the Senate Democratic Caucus. Obama will meet with Biden at 3:45 p.m. ET, and with Sec. of Defense Robert Gates at 4:30 p.m. ET.
Bush Hits Obama On Gitmo
During a speech yesterday in Pennsylvania, former President George W. Bush deviated from his previous declarations that he would not criticize President Obama. "I told you I'm not going to criticize my successor," he said. "I'll just tell you that there are people at Gitmo that will kill American people at a drop of a hat and I don't believe that persuasion isn't going to work. Therapy isn't going to cause terrorists to change their mind."
Obama's Day Ahead
President Obama will meet with Vice President Biden at 1 p.m. ET. At 3:15 p.m. ET, the two of them will meet with George Mitchell, the Special Envoy for Middle East Peace. At 4 p.m. ET, Obama will meet with Treasury Sec. Tim Geithner. At 7 p.m. ET, Obama will speak at a DSCC/DCCC fundraising dinner.
Obama And Congressional Negotiators Reach Compromise On Abuse Photos
House and Senate negotiators have approved a $106 billion compromise bill to fund the wars in Iraq and Afghanistan, after President Obama personally intervened on the controversy over an amendment to forbid the release of detainee abuse photos. The amendment was removed in the hope of assuaging liberal Democrats -- but Obama promised to use all means at his disposal to prevent their release.
Obama's Day Ahead
President Obama will meet at 2:30 p.m. ET with Sen. Sherrod Brown (D-OH), and at 2:50 p.m. ET with Sen. Dianne Feinstein (D-CA). At 3:30 p.m. ET, he will meet with Zimbabwean Prime Minister Moran Tsvangirai, who will press Obama for international aid and try to assuage the doubts about his country's political situation, given the uneasy power-sharing government he has with his rival, President Robert Mugabe.
The Detroit Bureau reports that an idea seems to be picking up some cachet on the right-wing blogs and in talk radio: Fighting the "Government Motors" bailout by boycotting the company. Most of it so far is limited to relatively little-known writers, but two big names have picked up on it: Hugh Hewitt, who wants to save free enterprise -- and Rush Limbaugh, who wants anything President Obama does to fail, and is urging his listeners to help push towards that goal.
"In the effort to reverse this lurch beyond the farthest left fringe of previous Democratic statist urges, individual Americans have a role to play. They have to say no to GM products and services until such time as the denationalization occurs," says Hugh Hewitt. He acknowledges that this is a serious step that could hurt people currently working for GM: "But there isn't any alternative, every dollar spent with GM is a dollar spent against free enterprise. Every car or truck purchased from Government Motors is one not purchased from a private car company that competes fairly against all other car companies."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (8)The Republican National Committee has this new Web video on the General Motors bankruptcy deal, condemning it as an example of the Obama Administration taking over the private sector:
RNC Chairman Michael Steele included this statement:
"No matter how much the President spins GM's bankruptcy as good for the economy, it is nothing more than another government grab of a private company and another handout to the union cronies who helped bankroll his presidential campaign. President Obama will now own 60 percent of GM, and his union buddies will own almost 20 percent. And what do the taxpayers get? They'll get stuck with up to a $50 billion tab for the taxpayer dollars Obama is using to pay for his takeover of GM. Americans shouldn't be fooled. This is the real 'change' President Obama has in mind for America - government ownership of our economy financed with irresponsible and reckless government spending and debt and no jobs to show for it. This is a very sad day for the autoworkers and their families whose financial well-being will be directly affected by this clear act of an overreaching UAW and overbearing government."PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)
GM Declares Bankruptcy; Government To Have Majority Share
General Motors has filed for bankruptcy as part of a government-led reorganization. The federal government will provide an additional $30 billion in aid -- and will have a majority share in the company of 60%. The plan is for GM to emerge from the bankruptcy within 60-90 days with a smaller work force, fewer plants and a reduced number of dealerships.
Obama's Day Ahead
President Obama will be speaking at 11:55 a.m. ET, on the General Motors bankruptcy deal. At 1:20 p.m. ET, he will visit the National Naval Medical Center in Bethesda, Maryland. At 4:45 p.m. ET, he will meet with the National Economic Council staff.
Obama Thanks Troops In Memorial Day Weekend Address
In this weekend's Presidential YouTube address, President Obama recognized the troops on Memorial Day weekend -- and said that the public hasn't always fully support them, but he will change that:
"That is why I will send our servicemen and women into harm's way only when it is necessary, and ensure that they have the training and equipment they need when they enter the theater of war," said Obama. "That is why we are building a 21st century Department of Veterans Affairs with the largest single-year funding increase in three decades. It's a commitment that will help us provide our veterans with the support and benefits they have earned, and expand quality health care to a half million more veterans."
GOP Address: Barrasso Support "Red, White And Blue Jobs" For Energy
In this weekend's Republican YouTube, address Sen. John Barrasso (R-WY) also thanked the troops on Memorial Day weekend -- and then proceeded to attack the Democrats on energy issues:
"Democrats have focused solely on what they call green jobs," said Barrasso. "Those are jobs from alternative energy. I support green jobs, but why discriminate? American energy means American jobs, which is why I support red, white, and blue jobs."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)WaPo: White House To Steer G.M. Into Bankruptcy
The Washington Post reports that the Obama Administration is preparing to send General Motors into a planned bankruptcy as the end of next week, with the intention to give the company nearly $30 billion more in aid to help them restructure.
Obama's Day Ahead
President Obama will sign the Weapons Systems Acquisition Reform Act, at 9 a.m. ET in the Rose Garden. At 10 a.m. ET, he will deliver the commencement at the U.S. Naval Academy in Annapolis, Maryland. At 3 p.m. ET, he will return to the Rose Garden to sign the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act.
Rumsfeld Spokesman Denies Accusations Of Biblical Quotes In Iraq War Briefings
Keith Urbahn, the spokesman for former Sec. of Defense Don Rumsfeld, is strongly denying the GQ report that Rumsfeld approved Iraq War briefings for President George W. Bush that incorporated Biblical quotes. "Rumsfeld was fully aware that words and actions could be harmful and counterproductive to the war effort. It's safe to say that some of these cover slides could be considered in that category," Urbahn said. "The suggestion that Rumsfeld would have composed of, approved of, or personally shown the slides to President Bush is flat wrong. It did not happen."
Obama's Day Ahead
President Obama will attend the first quarterly meeting of the President's Economic Recovery Advisory Board, at 10 a.m. ET in the Roosevelt Room, focusing at this meeting on clean energy jobs. At 3 p.m. ET, he will participate in a credentialing ceremony for foreign ambassadors in the Oval Office. He will hold a bill signing at 4:30 p.m. in the East Room, signing the Helping Families Save Their Homes Act and the Fraud Enforcement and Recovery Act. At 5:45 p.m. ET, he will call the crew of the Space Shuttle Atlantis. At 7:30 p.m. ET, the President and First Lady will host a bipartisan reception in the Blue Room for members of the House and their guests.
Obama, Automakers To Roll Out New Mileage And Emissions Standards
President Obama and the country's automakers are set to announce this morning a new set of national mileage and emissions standards, with cars and trucks required to get 35.5 miles per gallon by 2016. The automakers cooperated with the government in reaching these standards in order to pre-empt battles with individual states, and they have been given more time to reach the goals.
Obama's Day Ahead
President Obama will deliver remarks at 12:15 p.m. ET, on the new set of auto emissions and efficiency standards. At 1:45 p.m. ET, he will meet in the Oval Office with formers Secs. of State Henry Kissinger and George Schultz, former Sec. of Defense William Perry, and former Sen. Sam Nunn (D-GA). At 3:30 p.m. ET, he will speak at a ceremony honoring the National Small Business Award Winners. At 4:30 p.m. ET, he will meet with Sec. of Defense Robert Gates in the Oval Office.
WaPo: Biden In Charge Of Search For SCOTUS Nominee
The Washington Post reports that Vice President Biden has been tasked with with drawing up a list of potential Supreme Court nominees to replace Justice David Souter, whose retirement has not yet been officially announced but is widely reported to be a settled issue. Souter will reportedly step down after this current court term ends in June, effective upon confirmation of his successor. The next term begins in October.
Obama's Day Ahead
President Obama will be meeting with his cabinet at 11:15 a.m. ET. AT 12 p.m. ET, he will have lunch with Vice President Biden, and it's not unreasonable to imagine that the Supreme Court will be a key topic of discussion. At 1 p.m. ET, he and Homeland Security Sec. Janet Napolitano will attend a naturalization ceremony for active-duty service members, with Napolitano swearing them in as citizens and Obama presenting an Outstanding American by Choice Award. At 4:30 p.m. ET, he will attend a ceremonial swearing-in of Commerce Sec. Gary Lock and Health and Human Services Sec. Kathleen Sebelius, with Biden delivering the oath of office.
AP: Pirate Crisis Could Help Obama's Image On National Security
The Associated Press speculates that President Obama's behind-the-scenes handling of the Somali pirates hostage crisis could potentially pay off politically. "For Obama, the benefits were instantly clear: an American life saved and a major victory notched against an increasingly worrisome scourge of the seas off the Horn of Africa," the AP says.
Obama's Day Ahead: Easter Eggs, Stimulus, Defense
President Obama and his family will attend the White House Easter Egg Roll at 10 a.m. ET. At 11:35 a.m. ET, Obama and Vice President Biden will speak at the Department of Transportation, discussing infrastructure jobs created by the stimulus bill. At 4 p.m. ET, Obama and Biden will have a closed-press meeting with Robert Gates.
Obama Requests $83.4 Billion For Iraq And Afghanistan
President Obama has requested $83.4 billion from Congress, for the wars in Iraq and Afghanistan, which would raise the total costs of the two wars to almost $1 trillion. The Associated Press notes that the request will disappoint the more anti-war Democrats, but at the same time the continued commitment to the withdrawal of combat troops means it is sure to pass without the legislative battles that occurred during the Bush Administration in 2007.
Obama Meeting With Top Economic Officials
President Obama will be meeting at 11 a.m. ET with Treasury Sec. Tim Geithner, Federal Reserve Chairman Ben Bernanke, FDIC Chair Sheila Bair, SEC Chair Mary Shapiro and Comptroller of the Currency John Dugan. The group will update Obama on the current efforts to stabilize and repair the financial system, and afterwards Obama will deliver brief remarks to reporters after the meeting.
Obama: We Will Work With International Community To "Deliver A Strong Message" To North Korea
A reporter asked President Obama what his message was to North Korea, after today's missile launch. His response, from the White House's transcript: "We delivered it today. They, I think, have taken a provocative action. It creates instability in their region, around the world. If they want to take an appropriate path to rejoin the international community and break out of their isolation, that's available to them. That's not the path they're taking right now. And we intend to work with the international community to deliver a strong message."
Obama's Day In Prague
President Obama spent the day in Prague, meeting with Czech President Václav Klaus and Prime Minister Mirek Topolánek at 3 a.m. ET. Obama delivered a speech at 4 a.m. ET, calling for a world without nuclear weapons. He met at 5:30 a.m. ET with EU Commission President José Manuel Barroso, and then attended an EU summit working lunch. Obama met with leaders from Spain at 8:55 a.m. ET, with leaders from Poland at 10:30 a.m. ET, and with former Czech President Václav Havel at 11:10 a.m., and then left Prague for Turkey at 12 p.m. ET.
Jed Lewison, writing at Daily Kos, observes that GM's Rick Wagoner isn't the only CEO at a bailed-out company to be asked to step down by the government -- a counterpoint to the double-standard question raised today by Sen. Carl Levin (D-MI), Rep. Thaddeus McCotter (R-MI), and numerous media outlets (including TPMDC).
It's true that the Treasury Department and Federal Reserve asked Robert Willumstad to resign after three months in AIG's top spot, and that Fannie and Freddie's CEOs were also asked to resign last year.
Here's where those cases diverge from GM: the government controlled the majority of AIG when it ousted Willumstad and had already placed Fannie and Freddie directly into conservatorship when it booted their CEOs. The government also has become a leading shareholder at Bank of America and Citigroup, while taking the discrete step of lending money to GM ... while planning on showing the door to upwards of half of GM's board in the coming days.
None of this is intended to take a side in the double-standard debate that TPM readers have dismissed as a false equivalency -- merely to observe that it would be equally false to compare the circumstances behind Wagoner's resignation to those behind the AIG and Fannie-Freddie departures.
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It's an admittedly over-simplified question, but one that's lingered in the background today after the Obama administration insisted on the resignation of GM CEO Rick Wagoner: Is the government insisting on stronger concessions from Detroit than it is from Wall Street, despite the latter's receipt of a far bigger taxpayer bailout?
Sen. Carl Levin (D-MI) just told reporters that he believes there has been "a double standard for a long time in terms of the treatment of the financial industry, compared [with] the way the auto industry has been treated. It's something we've fought against ... but something we've got to live with and deal with."
Levin added that it would be a distraction to lament banking CEOs' ability to keep their jobs while boasting managerial records nearly as dismal as Wagoner's (Bank of America chief Ken Lewis and Citigroup chief Vikram Pandit are the names that often spring to mind).
When the senator was asked if he advised the president not to fire Wagoner, however, Levin offered a curious demurral:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)As he rolled out one last reprieve for the nation's troubled automakers, President Obama also restarted a legislative push that ran out of gas during last month's stimulus talks: a $10,000 rebate offer to car owners who traded in their old models for more fuel-efficient wheels.
The "cash for clunkers" plan was originally proposed by Sens. Dick Durbin (D-IL) and Tom Harkin (D-IA), at a total cost of about $16 billion. It was dropped from the stimulus amid GOP opposition, but Obama said today that he would "work with Congress to identify parts of the recovery act that could be trimmed to fund such a program and make it retroactive starting today."
Could that strong presidential endorsement give the rebate plan the momentum it needs to win quick congressional approval? Stay tuned...
Late Update: Sen. Charles Schumer (D-NY), who sponsored a $4,500 version of the "cash for clunkers" rebate alongside Sens. Dianne Feinstein (D-CA) and Olympia Snowe (R-ME), has just released a statement promising to work quickly on complying with the president's request:
The Obama administration's candid "viability assessments" of GM and Chrysler emphasize one unsurprising but unfortunate theme: Both auto companies have contributed to their own financial demise by relying on gas-guzzling trucks and SUVs instead of cultivating more fuel-efficient cars.
Here's the relevant excerpt from GM's White House status report:
GM earns a disproportionate share of its profits from high-margin trucks and SUVs and is thus vulnerable to energy cost-driven shifts in consumer demand. For example, of its top 20 profit contributors in 2008, only nine were cars.
And the administration's take on Chrysler was even more grim:
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President Obama is about to administer tough medicine to GM and Chrysler, giving them 60 days and 30 days, respectively, to formulate workable plans for financial survival -- in addition to securing the resignation of GM CEO Rick Wagoner.
Wagoner's departure hardly comes as a shock, given that the once-mighty General Motors began its current swoon under his stewardship. But Michiganders and Wall Street analysts alike are pointedly asking the same question Josh raised last night at the TPM mothership: Why did the Obama administration call for Wagoner's head but allow ineffectual banking CEOs to stay on the job and the government dole?
Here's how Rep. Thaddeus McCotter (MI), the third-ranked House Republican leader, put it to Reuters:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Obama Rolling Out Restructuring of Auto Industry -- And Boardrooms
President Obama is set to roll out his new terms for aiding the auto industry, with some big changes already in the works -- most notably, the administration has demanded and received the resignation of General Motors CEO Richard Wagoner. The government is also calling for Chrysler to partner with Italian automaker Fiat, and for GM to come up with a new business plan, after the government has rejected the proposals from both companies.
Obama's Day Ahead
President Obama will be speaking at 11 a.m. from the Grand Foyer of the White House, delivering remarks on the new plan for the auto industry. At 12:15 p.m. ET he will meet with Robert Gates. At 3 p.m. he will sign the Omnibus Public Lands Management Act of 2009, and at 5:30 p.m. ET he will meet with the House Democratic Caucus.
Obama Open To Outreach To Some Taliban Elements
In an interview with the New York Times, President Obama said that the United States is not winning the Afghanistan War, and that one option would be to negotiate with some elements of the Taliban. Though he acknowledged that the complexities of Afghanistan, he also said: "If you talk to General Petraeus, I think he would argue that part of the success in Iraq involved reaching out to people that we would consider to be Islamic fundamentalists, but who were willing to work with us because they had been completely alienated by the tactics of Al Qaeda in Iraq."
Karzai Approves Of Obama's Stance On Taliban Negotiation
At a public appearance yesterday in Kabul, Afghan President Hamid Karzai said: "Yesterday, Mr. Obama accepted and approved the path of peace and talks with those Afghan Taliban who he called moderates." He added: "This is a good news ... this is approval of our previous stance and we accept and praise it."
Obama Arriving Back At White House From Camp David
The First Family is scheduled to return to the White House at 2:50 p.m. ET, after spending the night at Camp David.
Ted Kennedy To Receive Award Tonight, Biden Attending
Ted Kennedy will be honored tonight at the Kennedy Center in Washington, where he will be presented the John F. Kennedy Profile in Courage Award. Vice President Biden and Jill Biden will be in attendance.
Shelby: Improve Market By Letting Big Banks Fail
Appearing on ABC's This Week, Senator Richard Shelby (R-AL) laid out his opposition to bank nationalization, and his support of letting big banks fail. "Close them down, get them out of business. If they're dead, they ought to be buried," Shelby said. "We bury the small banks; we've got to bury some big ones and send a strong message to the market. And I believe that people will start investing in banks."
McCain: GM Should Go Into Bankruptcy, Reorganize
Appearing on Fox News Sunday, John McCain said: "I think the best thing that could probably happen to General Motors, in my view, is they go into Chapter 11, they reorganize, they renegotiate ... the union-management contracts and come out of it a stronger, better, leaner, more competitive automotive industry." Rep. Thaddeus McCotter, a Michigan Republican, strongly disagreed, saying that if GM and Chrysler go into bankruptcy they would likely not come out of it.
Orszag: Spending Bill Will Be Different Next Year
Appearing on CNN, White House Budget Director Peter Orszag said the Obama Administration doesn't like aspects of the omnibus bill, but has to handle it as a matter left over from last year. "Is it uglier than we'd like? Yes. But again, this was negotiated last year," said Orszag. "We think we should just move on. When we are engaged in the fiscal year 2010 appropriations process, it's going to look a lot different."
Cantor: White House Has No Credibility On Spending
Also appearing on CNN, House Minority Whip Eric Cantor (R-VA) fired back at Orszag. "There is no way anyone could take what Mr. Orszag has said with any credibility," said Cantor. "Of course they're negotiating on this bill in the Senate right now. To say that we would have drawn it differently, but leave $430 billion plus on the table like this? No way." A note about credibility: Cantor voted for all of the Bush White House's deficit-spending programs.
The Environmental Protection Agency (EPA) is holding a hearing today on the waiver request by California, as well as more than a dozen other states, to allow higher auto fuel-efficiency standards under the Clean Air Act.
The Detroit Three -- General Motors, Ford, and Chrysler -- are not sending direct spokesmen to the event. But one of their home-state senators, Carl Levin (MI), is there, and his argument tracks with what the auto industry wants: a "single national standard" to govern auto tailpipe emissions.
That doesn't sound so bad, does it? Well, the Clean Air Act did allow California to set its own environmental regulation standards and give other states the authority to opt in, but let's assume that a national standard would be the best solution for automakers as well as the nation. Now where should the national standard be set?
When I asked Levin this question last week, he said any national standard should simply be "fairly achieved" and that the specific fuel-efficiency level should be "left to the experts."
But Dan Becker, director of the Safe Climate Campaign and the Sierra Club's former senior global warming advocate, sees the "national standard" push in a different way: as Detroit's code for urging rejection of the California waiver. "When they say 'one national standard,'" Becker told me, "what they mean is ... [that] California['s waiver] should be obliterated and the EPA should keep its nose out. That ain't gonna happen."
What may happen? The automakers may end up ruing the day they advocated for a uniform national standard.
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