ABC News reported The White House and Treasury Secretary Henry Paulson have rejected the notion of using money from the so-called TARP - a $700 billion package passed by Congress in October to stabilize the financial industry.
Good for them. I hope they stick to it.But in a letter Thursday night, Democratic leaders in the House and Senate told President Bush he must commit funds from either the TARP or the federal reserve or they will be unable to pass anything in Congress.
That is very good news. Congress is passing way too many bailouts now. If they can't pass any more. GM will enter Chapter 11, and that will not be nearly as bad as they are trying to frighten people into thinking. Some management may have their golden parachutes withdrawn, and bonuses canceled, and some bad union contracts may be reversed, but that is what the Big 3 need to become competitive.