Bailout Update: Feds to Give Loans to GM, Chrysler
CNN reports (via redstate.com):
Bush said Friday the federal government would provide loans almost immediately to General Motors Corp. and Chrysler to prevent “an unacceptably painful blow” should the Detroit giants fail.
Bush said in normal economic circumstances he would not intervene to save the automakers but “in the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.”
Federal intervention is necessary, he said, to give auto buyers faith in their purchases of domestic vehicles.
“If you hear that a car company is suddenly going into bankruptcy, you worry that parts and servicing will not be available, and you question the value of your warranty,” Bush said. …
“If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury,” a White House statement said.
Maybe the folks in DC should realize that filing for bankruptcy does not mean the end of that particular business, per se. It simply means that it has a chance to cut its losses, re-group, and being afresh.
Then again, filing for bankrupty would likely mean the United Auto Workers union would no longer be able to call the shots with management and, as we all know, that’s simply not an option for the current stakeholders at the moment. And that’s just too bad.
-Phil
I am so totally disgusted with our entire government. Foxnews is reporting that Congress just voted themselves raises of at least $4700. a year more for 2009.
Just where do they get off with this behavior? The American people have been taking this abuse from this government for way to long and it’s time it is stopped.
Companies are closing, people are being laid off across the country, losing jobs and health benefits and we should sit back and take more? Pelosi, Reid, Dodd, and the rest of them just have this attitude that they deserve this when in fact they are the ones who have put us where we are with this entire economy just to prove their power against GWB and the republican party. What greedy power mongers that are controlling our entire system. This government is supposed to be, by the people, for the people and of the people—-not the governement. When will this end? They have us locked into over 700 bil dollars of debt since October and Paulson has carte blanch with our money?
Please, we have to stop these people–are they losing their minds? And yet, the justices can’t even look at these law suits of trying to get Obama out. What is this about? Who is controlling our government and legal system?
Follow the money trails from AIG, fannie/freddie, Wall Street and the rest and someone is sitting real pretty with our money.
And obamas tax plan is to tax those who make more than 250k a yr? Notice that Pelosi is a hair under that at 217k a yr and congress at 188k—so I guess they will not get hit with the increase and by gosh they are the ones who should.
This has to stop…we need to demand the resignation of everyone of them based on their own incompetency.