We have talked about the auto bailout several times. The Big Three car companies have previously asked for $25 billion, and now they just increased the request to $34 billion. The executives have admitted their mistakes, and promised to restructure their firms and pay off debts.
Congressional budget analysts, however, have privately told top Democrats that tapping that program wouldn't come close to covering the $34 billion that carmakers now say they need to survive. It would yield only $10 billion to $15 billion in short-term loans, the analysts claimed, according to congressional officials who spoke on condition of anonymity because they were not authorized to disclose the analysis.
We'll see how far the Big Three can push for more.
2 comments:
I think Congress and the Big Three are going to reach an agreement. When it started they took they're private jets to ask for 25 billion. There was an outrage, and I think one big thing that caused them to change their ways was not only Congress but Obama (with all the political capital he has right now) said in an interview with Barbara Walters that they should take a pay-cut and stop flying in their jets, because it just goes to show how they do not get the severity of the situation for average Americans. Slowly they are starting to see that they are not going to get the money unless they make serious changes.
I'm proud of the democrats in Congress for finally getting a spine.
This is a perfect example of not big government (throwing money at the problem), or small government (letting them fail because of ideology) but smarter government. Setting terms and conditions. If they don't abide by the terms, they don't get what they want.
I agree with Vance, and what we need now is smarter government, in the auto bailout and about the economy in general. We have to be really realistic about what the govenrmnent can actually do for these companies when they are worried about so many other (more important?) aspects of the economy. Personally I think that the auto makers have been being uncompetitive for several years now and they refused to change their product or rearrange spending (by flying first class instead of private jet). That has really hurt them, their business, and their credibility with the american people.
Post a Comment