Now that that GOP has killed the auto bailout in Congress, what will happen?
The automakers will get their money.
Bush will order Paulson to use TARP (or an emergency measure will pass in the Senate.) It is a certainty.
The GOP is stupid, but they’re not suicidal. They’re going to realize that letting General Motors go bankrupt in this economy, just before Christmas, will damn them through 2012, at least. It would be, as Cheney warned, “Herbert Hoover” time for the Republicans.
Thinking about it, it could just be a bit of gamesmanship here. Bush will cover (pun intended) Congress with the TARP money, and the Republicans can still look like principled fiscal conservatives. Bush was never a true believer, they’ll say (despite the fact that they went along with everything).
At any rate, don’t bet against the bailout. It’s a done deal.