The Other Bailout? $25B Loan Guarantee to Automakers

[razorsharp]

<p>

The US Senate Saturday approved 25 billion dollars in loan guarantees for the financially strapped US auto industry, intended to spark a wave of automotive innovation.
The loan guarantees were included in a continuing resolution that included funding for the US government and the wars in Iraq and Afghanistan.</p>

<p>President George W. Bush has indicated that he intends to sign the bill.</p>

<p>“We’re very pleased Congress has chosen to act at this critical time,” said Greg Martin, director of communications for General Motors Corp’s Washington office.

</p>

<p>[US</a> Congress passes 25 bln loan guarantees to automakers](<a href=“http://www.breitbart.com/article.php?id=080928164938.dtc44u1c&show_article=1&lst=1]US”>http://www.breitbart.com/article.php?id=080928164938.dtc44u1c&show_article=1&lst=1)</p>

<p>With all the discussion about opposition to the financial bailout on Wall Street, why isn’t anyone complaining about lending money to automakers who are about go to out of business?</p>

[tetrahedr0n]

<p>Because 700 billion and 25 billion aren’t exactly comparable, and the auto industry might actually produce something useful with the money from the loan?</p>

[Mr_Payne]

<p>Auto industry produces things with value. The big 3 have a totalized revenue of ~400+ billion. Start adding in suppliers and the dealer network and the total economic impact of the big 3 is massive.</p>