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Government won't bail out GM, Bush says

by Paul Rachwal

President Bush does not believe in Government assistance for companies that contribute to the U.S. economy, General Motors included. This was made clear in the President's response to GM's Tuesday announcement of giant restructuring measures.

"Should the government bail out private enterprise? The answer is no, it shouldn't," Bush said. As for high gasoline prices and energy conservation, Bush's opinion is "People can figure out whether they need to drive more or less; they can balance their own checkbooks."

According to Reuters reports, the Bush administration is seeking congress approval of issuing an unlimited, temporary line of credit to mortgage companies Freddie Mac and Fannie Mae, spurring questions and the debate as to whether it should do something similar for GM. Bush argues the helping hand extended to the mortgage company is not a bailout because shareholders still own the company.

Meantime, GM's CEO Rick Wagoner mirrors Bush's sentiments, stating GM needs to help itself, adding the company would welcome government assistance but is not seeking a full-blown bailout, like the government did with Chrysler back in 1980.