Bush Approves $17 Billion Auto Rescue

Given the economic situation in the United States right now I don’t see that there was much choice. A collapse of the auto industry at this point could have dealt our economy a blow that would take years to recover from.

Published: December 19, 2008

WASHINGTON — President Bush on Friday announced $13.4 billion in emergency loans to prevent the collapse of General Motors and Chrysler, and another $4 billion available for the hobbled automakers in February with the entire bailout conditioned on the companies undertaking sweeping reorganization plans to show that they can return to profitability.

Mr. Bush made his announcement a week after Senate Republicans blocked legislation to aid the automakers that had been negotiated by the White House and Congressional Democrats, and the loan package announced by the president includes roughly the identical requirements in that bill, which had been approved by the House.

Mr. Bush, in a televised speech before the opening of the markets, said that under other circumstances he would have let the companies fail, as punishment for their own bad business decisions. But given the economic downturn, he said the government had no choice but to step in. REST OF ARTICLE

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6 Responses to Bush Approves $17 Billion Auto Rescue

  1. Larry says:

    It’s a shame that the UAW has driven the three automakers to this point. This may not be a very popular opinion, but how is it a good practice to negotiate such benefit and wage packages that it drives the company you are working for to near bankruptcy. They have no one to blame but themselves.

  2. Sage says:

    I think management has to take a lot of heat for that.

  3. Larry says:

    I was amiss by not giving them some of the blame. Between the management and the UAW, it is no surprise that Detroit is in the shape it is in. It’s really a shame that the American taxpayer has to help bail them out.

  4. Sage says:

    I’m sure there is enough blame to go around. It is a shame we have to bail them out but I’m not sure we can NOT bail them out without a major blow to the economy.

  5. Larry says:

    That may be true, but where do we need to draw the line and say enough with the bailouts? It seems to be hard to find a stopping place.

  6. Mbousa says:

    This bailout mania that has gripped Washington is a free for all, with the beggers lining up down the halls of the capitol. Like the $700B blank check they gave to Paulson with out any conditions – we are the people they are taking the money from and our children are going to pay a horrible price. Another on Paulson.. he came from Goldman Sacs, he’s given them bailout money, and in five weeks he is out of a job. Guess where he’s feathered his nest….

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