Along with the bailout in the finacial sector in U.S. market, there has been consideration for U.S auto industry as they are currently seeking for support from the government.
As credit became hard to obtain, the automobile industry has been facing decrease in demand for cars in addition to the increase in energy prices. Due to this, the U.S. hasendorsed the idea o a goverment bridge loan in return for signifcant stemps to retrucure automobile companies to make them more competitive. This bridge loan is projected as $14 billion dollars but still it remains elusive as the goverment faces other difficulties.
2 comments:
So this represents another aspect of the recession. The auto industry seems to be taking a lot of heat as far as the blame for the recession. I think this is interesting, because it seems that the recession would have to come first, before the auto industry's effect on things could even be apparent. Anyone have any other thoughts?
I think the problems with the auto industry have been apparent a long time ago. I think that the current recession is just one of the final nails in the coffin. I personally think that these bailouts are just trying to keep the Titanic from sinking by just throwing money at the problem. The real issue is how these companies are being run. The money is just going to keep these businesses going the same course. I know it is going to hurt but I say let the companies fail and cause some real change.
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