Kyl on bailout: ‘Where will it stop?’by Mark Kimble on Dec. 22, 2008, under Nation/World, Opinion
When President Bush announced that he had found a way to bail out the auto industry, some of the harshest criticism came from an unfamiliar source: fellow Republican Jon Kyl.
Kyl, a Republican senator from Arizona and the Senate GOP whip, immediately issued a statement blasting Bush, asking, “Where will it stop?”
“I am very disappointed,” Kyl said in his statement. “The senate rightly rejected providing funds under the same conditions set by the president because the terms were deemed insufficient. The White House’s action is also directly contrary to Congressional intent regarding use of the financial stabilization funds and sets the precedent for the new administration to use the next tranche of funds for any applicant with political clout.”
“The president justified his action with a false choice: it’s either this plan or abrupt liquidation of the companies,” Kyl added. “The White House seems to think that the industry didn’t have time to deal with the problem or prepare for an orderly bankruptcy, which is false. . . . The majority of leading economists believe reorganizing under Chapter 11 is the best option for these companies to become more competitive.”
Kyl ended by saying, “This bailout not only sets a bad precedent and thwarts the will of Congress; it also is unlikely to force the changes needed for the companies to be competitive and sets the stage for additional taxpayer support in the future.”
And he asked, “Where will it stop?”
Very rough words from a fellow Republican and a man who has generally supported Bush.
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