GM, Chrysler, and Ford had previously asked Congress to give them a bailout, a request that died in the Senate. The funds that the Treasury is using to bailout the automakers come from TARP, which was created to bail out the Banks. The Federal government should not be bailing out corporations. However, beyond whether the feds should bail out an industry is the question of the legality of the bailouts. Congress is authorized to allocate money for specific purposes and the Executive Branch spends the money as authorized by Congress. In bailing out GM & Chrysler, it appears the President is allocating money in a way not authorized by Congress for a purpose that was rejected by Congress.
The United States is rapidly becoming a Banana Republic with a 0% prime rate and an acceleration of the money supply by the Federal Reserve Bank that will lead to high inflation in the future. Capitalism is shrinking while socialism is expanding. The Bankruptcy Act was passed by Congress to deal with the very situations that the automakers find themselves in due to their own mistakes and mismanagement. Both management and unions agreed to operate in the manner that lead to this crisis. Is Uncle Sam going to bailout the Newspapers, Airlines, Restaurants and individual taxpayers who are find themselves in the same financial situation? Where is the balance between short term stimulus and long term debt? THERE IS NO MONEY IN THE TREASURY TO PAY FOR THESE BAILOUTS. Trillions of dollars worth of debt is being run up by the Federal government. YOU, the individual tax payers will have to repay this debt in the future. There is no free lunch. There are no free bailouts. Somebody has to pay. If you are one of almost half the wage earners who are not required to pay income taxes, you get a pass. The rest of you need to be prepared to send a check, send a BIG check , to the IRS in 2011 and for the rest of your life to pay our way out of the debt that the present administration and the Obamanation are producing.