Congress ready to bail out Auto Makers/ Union workers.

Nation: If you thought the bailout of the Big 3, Detroit and union workers was a bad idea, it got a whole lot worse.

Congressional Democrats and the White House worked to resolve their last disputes Monday over terms of a $15 billion bailout for U.S. auto makers - complete with a "car czar" to oversee the industry's reinvention of itself - that's expected to come to a vote as early as Wednesday. Top Democrats gave the White House their proposal for rushing short-term loans to Detroit's Big Three through a plan that requires that the industry remake itself in order to survive. The Bush administration gave a cool initial response, saying the measure didn't do enough to ensure that only viable companies would get longer-term federal help. Negotiators worked into the night Monday to resolve differences. ...There are lingering differences between the administration and Congress on details of the czar's role and responsibilities, essentially a proxy fight between the White House and Democrats over whether Bush or President-elect Barack Obama should have the final say on who runs the auto industry restructuring. Democrats are pressing to allow the president to choose other people beside the czar to help oversee the bailout, while the White House wants just one person tapped by Bush to have control. Congress Republicans and the White House also are balking at a requirement Democrats included in their proposal that the carmakers drop their opposition to efforts by California and several other states to impose stricter emissions rules than the federal standard. Pelosi is seeking that bar at the behest of environmentalists who are angry that money to bail out the auto industry will be drawn from an existing loan program that was meant to help the Big Three build greener vehicles that burn less gasoline. That's just one of several restrictions the bill places on the automakers while they're receiving the loans. Among the requirements included in Democrats' draft proposal is one that the carmakers getting federal help get rid of their corporate jets - which became a potent symbol of the industry's ineptitude when the Big Three CEOs used them for their initial trips to Washington to plead before Congress for government aid. The automakers also would be subject to some of the same restrictions imposed on banks as part of the $700 billion Wall Street bailout, including limits on executive compensation, a prohibition on paying dividends, and requirements that the government share in future profits and taxpayers be repaid before any other shareholders. The special inspector general overseeing the Wall Street rescue also would keep tabs on the carmaker bailout. The Senate on Monday confirmed Neil M. Barofsky, a federal prosecutor in New York, for that post. The proposed automakers' bailout also gives the car czar say-so over any major business decisions by the companies while they're taking advantage of federal aid. The companies would have to open their books to the government, including informing the overseer of any transaction of $25 million or more. Under the plan, the carmakers' could get emergency loans right away. Then the overseer would write guidelines, due on the first of the year, for restructuring the Big Three.

WSJ:

One danger for auto makers is exposing the industry to congressional meddling as it attempts to build a new business model. The legislation, among other things, would bar the companies from participating in legal challenges to state laws designed to impose limits on greenhouse-gas emissions. The White House opposes that provision, congressional aides said. The big three would have to analyze whether excess production capacity could be used to make trains and buses for public transit authorities.

Lets understand what the hell is going on here. The American Taxpayer is going to have an ownership stake in a failing business model used by the Detroit Big 3. We will be paying to keep this business model basically intact because any real change will involve massive cutting of expenses and employees.

UAW workers are strong Dem backers, Obama and the Dems will not allow the Big 3 to actually cut workers who are their type of voters. So the taxpayer is cutting a welfare check to keep these companies and workers on the dole.

The Dems are passing a bill that does everything in its power to not fix the auto makers. So congrats America, we got ourselves a nationalized auto industry.