Saturday, July 20, 2013

No signs Washington to come to Detroit’s rescue



WASHINGTON (AP) — Throughout the bleakest times of the truly great Recession, Congress agreed in bipartisan votes to bail out 2 of Detroit’s biggest businesses, GM and Chrysler.


Today, however, there seems little appetite from either Democrats or Republicans in Washington for the federal rescue with the birthplace of the automobile industry. Detroit now stands for the largest American city ever to file for bankruptcy protection.

A real bailout could be huge, perhaps as much as $20 billion. Federal resources are strained, using the national debt at $16.7 trillion and the us government struggling beneath the constraints of automatic spending cuts that took effect in March.

President Barack Obama has experienced a tough the required time getting his present proposals through Congress, where Democrats hold a narrow majority within the Senate and Republicans will be in firm control of your home.

“I think it could be a waste of the president’s time for it to even propose it. His plate is really full and throwing Detroit into the mix is the last thing in the world he’d want, ”said Ross Baker, a political science professor at Rutgers University which specializes in Congress. “I think the era of massive government bailouts has ended.”


Political leaders in Washington haven%u2019t pushed for any bailout of Detroit, that has been the country’s fourth-largest city in the 1950s speculate has received a declining population, accelerated by hard times in the auto industry during and following the punishing 2008-2009 recession.

Congress continues to be in the near - gridlock territory. Opportunities for spending poisonous of cash with a bailout for Detroit seem severely limited. The White Property is going for a wait-and-see approach, but clearly exhibiting little enthusiasm for the next big bailout.

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