Banks get the Cash, Automakers get the Shaft

Critics of President Obama’s do-or-die plan for General Motors and Chrysler are making this a fight over fairness: Why do banks get carrots and the autos get the heavy stick?

It’s a fair question, and one likely to resonate with those who feel Obama has gone light on insurance giant AIG and bailed-out banks like Citigroup. But, based on conversations with White House officials and advisers, the president has a much more jaundiced view of the automakers – and sees limited upside for bailing them out.

Obama said in announcing his plans for the industry: “We've reached the end of that road. And we, as a nation, cannot afford to shirk responsibility any longer. Now is the time to confront our problems head-on and do what’s necessary to solve them.”

Administration officials say they are optimistic that both GM and Chrysler will continue to exist, albeit in radically altered forms. With pressure from the administration, Chrysler said it has agreed to the “framework” of a global alliance with Italian carmaker Fiat Monday, but acknowledged there are still “substantial hurdles” to a final deal.

The administration officials said they do not have different standards for banks and auto companies. Instead, the officials say, they are focused on the broad impact on the economy, and have the identical message for carmakers and the financial-services industry: “Money doesn’t come free. Money comes with conditions.” - Politico Story

I have said before and will continue to say, I don't think that we should be bailing any of these companies out. They ran themselves into the ground and shouldn't expect us to bail them out. No one is stepping up to bail me out when I overspend on my Credit Cards.