Bailout Watch 148: Dems Plan on $25b Detroit Bailout. For Now.
Automotive News [AN, sub] reports that freshly emboldened Democrats are looking for Uncle Sam to underwrite another $25b worth of no- to low-interest loans for embattled American automakers. And they hope to get the cash money to GM, Ford and (if they’re still around) Chrysler by year’s end– without any of those pesky strings that made the Department of Energy’s $25b no- to low-interest “retooling” loans such a PITA. Yes, “The source [“familiar with the discussions”] said Democratic lawmakers want the second $25 billion in loans to be more flexible than the first batch. The loans would be part of a proposed stimulus package of $100 billion to $300 billion to be considered in a lame-duck session of Congress. The size of the package would depend on what outgoing President Bush finds acceptable.” While we’re not big on AN’s speculation– I mean “source”– the unnamed spy offered an interesting codicil to the down-low. “The source said Democrats are not inclined to provide loans to support a proposed General Motors purchase of Chrysler LLC.” Not inclined? Does that mean, oh go on, twist my arm?
100% agree. American unions are driving the domestic industries out of business (or country) and bankrupting (the heavily unionized) state governments. Despite being one of most unionized in the world, our education system churns out students who perform worse than those of most other developed countries.
I hope this bailout madness is stopped one way or the other, by Bush veto if necessary (not that I was ever a fan of Bush). We (as in collective "we") need to live within our means, which means no taxpayer dollars to support failing auto companies. They made their own bed; they can sleep in it.