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 ...
If they need money why can’t they issue more stock (equity) or debt. Why do they need a mandated loan from the taxpayer?
Oh, wait! They have no market value and they are a bad investment. Let’s see, if the local pizza joint has no market value and is a bad investment, it closes.
I must be missing something here.
I’ll take a fistful of aspirins, please.
Will you throw in a few tranquilizers while you’re at it?
Thank you.
MCCAIN needs to sit down with the American People and tell them about all these things going on behind the BULLSTREET BAILOUT SMOKESCREEN.
GM is a 6 billion dollar company
Ford, about 9 billion.
Chrysler has negative value.
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I guess not anymore
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