Bailout, bailout, bailout

Story coming from AP later today:

WASHINGTON — Detroit’s Big Three automakers, devastated by plunging sales, come begging Congress for a $25 billion rescue to keep the former titans of U.S. industry afloat through the end of the year. Paulson says the money won’t come from last month’s financial bailout fund, and Congress shows no inclination to ante up on its own.

Wow. Maybe our people in Congress heard the message the people sent after the big bailout of the financial industry.

Uh oh.

Also coming from AP:

WASHINGTON — The Treasury Department’s scattershot revisions to its financial industry bailout have so shaken investor confidence that the flow of loans necessary for economic recovery could be delayed for months or even years, experts say. Secretary Henry Paulson’s decision this week not to ask Congress for the second half of the $700 billion was the latest in a series of gyrations that have heightened confusion in already turbulent markets.

Back to the car industry. There is a good conversation going on at www.carlustblog.com on the bailout or nonbailout of the industry. Specifically, go to this item and follow the comments. There is some pretty good wheat among the chaff.

All in all, I would expect Congress to stay away from any auto industry bailout. If I expect it to not happen, it probably will. The only question is who will fulfill the role of Chris Dodd or Barney Frank in this coming debacle?