Posted on 09/24/2008 11:41:38 PM PDT by KingJaja
In Washington these days, an 11-figure expenditure barely attracts notice.
With Congress preoccupied with the massive, $700 billion bailout plan for the financial industry, General Motors, Ford, and Chrysler have finally secured Part One of their own federal rescue plan. A bill set to be passed by Congress and signed by President Bush as early as this weekend—separate from the controversial Wall Street bailout plan—includes $25 billion in loans for the beleaguered Detroit automakers and several of their suppliers. "It seemed like a lot when we first started pushing this," says Democratic Sen. Debbie Stabenow of Michigan, one of the bill's sponsors. "Suddenly, it seems so small."
But please don't call it a "bailout"—Detroit is too proud for that. Exact details will come later, but the loans would probably amount to at least $5 billion for each of the Detroit 3, plus smaller amounts for suppliers. That would allow them to borrow money at interest rates as low as 4 percent—a steep discount compared with the double-digit rates they're paying now. Over several years, the automakers could save hundreds of millions in financing costs. Plus, they'll have five years before they have to start repaying the loans.
(Excerpt) Read more at usnews.com ...
AAAAAGGGHHHHHHHHHHHHHH!!!!!!!!!
What’s next? Free meds for all?
British Leyland part 2
it won’t work as the cars will still suck compared to the competition
GM is a 6 billion dollar company
Ford, about 9 billion.
Chrysler has negative value.
Like a snowball headed to hell. ~~Merle Haggard
Once the socialist snowball starts rolling, there’ll be no stopping it.
I guess we are into the “subsidize it” phase!
The financial bailout is supposed to be justified because the credit crisis could take down the entire economy. But what the hell justification is there for government giving cheap loans to save incompetent auto companies and their greedy unions?
Refueling the Titanic while the captain merrily keeps steering toward the iceberg.
This is the frustrating thing- these comapnies are in trouble because of over-regulation and unsustainable labor obligations. Now the same government who put them in this spot is going to throw our money at the problem instead of fixing it? great.
It appears government will never learn to stay out of it. The automakers need to produce cars people want at a price they can afford. Period. Works for Honda and Toyota just fine.
Printing money can be fun. Yes you too can be a Congress money printer. Out of nothing you can create cash. Call 1-800- IAMATHEIF.
easy come easy go
Yeay, I dont think they need a bailout and their labor unions are killing them. But to say they are making cars no one wants is bs. I just ordered an 09 Jeep Patriot but I really would’ve liked a Ford Flexx,Dodge Challenger, Chevy Camaro.
Right. Pocket change. A payday loan without all the bothersome compounding. Drop in the bucket. Such a miniscule percentage of GDP.
There's no stopping this train now.
And Ford owns the lions, If you can afford to own a football team you don’t need taxpayer money
These car companies will then turn around and hum like fine violins.
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