The 2 American companies have no intention of paying back the loans. If they sold everything in a fire sale (chapter 7), they couldn’t pay back the loans provided by the US government, not to mention all the other loans and bonds (basically just another type of loan) that have priority above it.

The companies in Japan are requesting short term loans just to preserve capital.

I really do feel for the employees of these companies and all their suppliers. It’s a bitch what Detroit has has to endure. However, just because GM and Chrysler couldn’t get it right, doesn’t mean the tax payers should loan them 330 times the value of the company.

I am of the belief that when/if GM and Chrysler finalyy do go down, someone new will step in and pick up the slack. That could be the reason for the foriegn brands to get loans…be prepared to pick up the slack. The employees of GM and Chrysler should be dusting off and polishing their resumes…

Do you believe government loans are “socialism”? After all Toyota and Nissan can’t get loans from normal commercial banks right now in the “free market”.

I believe it’s wrong. But I don’t know if “socialism” is the right word. It has so many meanings in different context.

More importantly, I believe this whole government-bank mess started when the Federal Reserve was created. It has always been the same game. Just that recent developments are more dramatic and more revealing to the public.

I don’t see it, maybe my cache won’t clear. The typo I referred to is the name “Foster” used twice, and “Forster” used once. I believe all of these are meant to refer to the same person?

Do you believe government loans are “socialism”? After all Toyota and Nissan can’t get loans from normal commercial banks right now in the “free market”.

Consider a home owner, if he has enough equity, then it’s a loan. If he is “upside down” and late on payments, then it’s a bailout.

If you’re against the government helping private corporations, it shouldn’t matter what the size or purpose is. That’s the rhetoric I’ve heard from a lot of commentors on here, anyway. Taking government loans is Marxist, they should take their lumps in the free market, etc.

Note that the Japanese government has made these loans available to any exporter, not just carmakers. All Japanese exporters have been hammered.

Nissan Death Watch?

Sorry, I couldn’t help it!

I am really looking forward to Bob Corker’s reaction though, since he’s so strongly against government intervention in the auto industry.