(Source: ABC) Dana Perino, White House Press Secretary, said Thursday, "There's an orderly way to do bankruptcies that provides for more of a soft landing. I think that's what we would be talking about. That would be one of the options.
President Bush added, "This is a difficult time for a free-market person. Under ordinary circumstances, failed entities, failing entities should be allowed to fail."
The White House is being pulled in two directions. Speaker Pelosi urged Bush to act quickly. She said 2 million U.S. jobs are dependant on Bush giving the industry a loan.
Republican members of Congress are telling bush that "no amount" of money will save the companies, adding, "American taxpayers cannot afford to save every company facing financial peril."
We agree with the fiscal conservatives. Here's why.
Cerberus Capital Management LP, a leading private investment firm, owns 80% of Chrysler and 51% of GMAC. The company also owns bus manufacturer Blue Bird and car parts maker TA Delaware (formerly Tower Automotive). Other holdings include a 45%-stake in Japanese bank Aozora, real estate services firm LNR Property, and a 52%-stake in ACE Aviation Holdings, the parent company of Air Canada. (Source: Hoovers)
From the company's website homepage: "Cerberus believes that strong corporate governance is the cornerstone of our business. We believe competition makes the global economy more productive and more efficient, which enables companies to succeed long-term in the globally competitive marketplace. "
So why are we even debating giving AMERICAN TAX DOLLARS to bailout a company with over $100 billion in annual revenue and one which is a global company with business interests from Japan to Canada!