By John Brinsley and Jeff Green
Dec. 12 (Bloomberg) -- The Bush administration dropped its opposition to using the $700 billion bank bailout to provide financing for U.S. automakers, after the Senate yesterday failed to approve emergency loans.
“Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms,” Perino said. “However, given the current weakened state of the U.S. economy, we will consider other options if necessary -- including use of the TARP program -- to prevent a collapse of troubled automakers.”
1 comment:
I agree with Perino in that "under normal economic conditions we would prefer that markets determine the ultimate fate of private firms." however, this is a market failure where the government needs to step in. However, i feel that before the government gives the automakers some of the tax payers hard earned dollars, the automakers need to have a plan that would benefit their company instead of just asking for money that they have no idea how to use in a beneficial way.
Post a Comment