The Entrance Of A New American Socialism
Congressional Democrats are marshaling support for a rescue package to pump $25 billion in emergency loans to U.S. automakers in exchange for a government ownership stake in Detroit's car companies.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, and Sen. Carl Levin, D-Mich., are developing legislation that would let the auto industry tap into the $700 billion Wall Street rescue money, approved by Congress last month, to fund their business operations.
The Golden State isn't the gleaming beacon of success it once was. California's budget is spiraling out of control and lawmakers are calling for a federal bailout.
"I think states need to be raised to level of AIG, to the level of the banks, to the level of the auto industry," said Dem. Assembly Speaker Karen Bass.
Los Angeles, along with several big cities, is asking U.S. Treasury Secretary Henry Paulson for a piece of the $850 billion Wall Street and bank bailout.
Los Angeles Mayor Antonio Villaraigosa wrote to Paulson along with New York Mayor Michael Bloomberg, San Francisco Mayor Gavin Newsom, Phoenix Mayor Phil Gordon, Chicago Mayor Richard Daley and Philadelphia Mayor Michael Nutter. They are asking Paulson to use the bailout funds to provide $50 billion for cities to invest in construction and public works projects. They also want bailout money to deal with cash flow and pension fund issues.