Ensign may block auto bailout

WASHINGTON -- Sen. John Ensign said this morning he may try to block the Senate from passing an auto industry bailout, criticizing the plan as a further move toward "socializing" the economy.

"We're looking at that very hard, because I have some serious, serious problems with this package as it currently stands," Ensign said. "Unless we see some serious give by the other side, I think that not only myself but several of us will be looking at possibly blocking this package."

Ensign commented during an interview broadcast on CNBC, as Congress returned this week to consider an $15 billion bailout bill negotiated between Democrats and the White House. He complained the Republicans in Congress were left out of the talks.

The Nevada Republican said the assistance to the automakers amounts to "the government picking the winners and losers instead of the market."

"We're just going down further and further and further towards socializing our economy," he said.

In a Senate speech this morning, Majority Leader Harry Reid of Nevada did not address Ensign's remarks directly but noted that opponents to the bailout could "slow things down quite a bit."

"We hope that is not the case," said Reid who has said he is supportive of the aid plan as a safety net to autoworkers. "We know what we have to do and we need to do it as quickly as possible."

Reid said he was hopeful the Senate could complete the bill tonight or on Wednesday. On CNBC, Ensign said he would prefer the auto companies file for Chapter 11 bankruptcy protection and reorganize their businesses. At that point, he said the government might step in and guarantee sales warranties so the automakers can continue to sell vehicles.

"That's been the automakers' biggest problem going into Chapter 11," Ensign said. "They said nobody will buy cars because they won't know whether they can get a warranty. Well the government can guarantee the warranties. That's not a problem and that would be a lot cheaper for the taxpayer and a lot safer way to go."

Ensign said other industries are suffering, including the hotel and gaming industries, "and we don't hear people saying, Oh, let's bail out the tourism industry."

"You're going to see a lot of hotels are going to be closing their doors," Ensign said. "There's probably going to be some in Nevada and some across the country, and where do we stop at this?"