Bush Gives Auto Loan

[ThatGuy]

The federal government will provide $13.4 (USD) billion in loans to Detroit automakers, the White House said today. An additional $4 billion may be available in February, the Bush administration said. The loans are designed to stabilize U.S. automakers through March 2009, at which time the automakers must show they are financially viable.

Edited December 19, 2008 by ThatGuy

[ThatGuy]

I figured this would be a big discussion point today since it means we are putting money in as well.

Thoughts on this?

[bush_cheney2004]

I figured this would be a big discussion point today since it means we are putting money in as well.

Thoughts on this?

Not on the bail out itself...Ford is not getting a bail out but does want a line of credit if needed. At the political level, it is curious that the Canadian bail out was contingent on the Americans, and ultimately...George W. Bush. This speaks to a much larger dynamic.

[Smallc]

I wish people would get it straight. only GM and Chrysler asked for and got money.

[Topaz]

Not on the bail out itself...Ford is not getting a bail out but does want a line of credit if needed. At the political level, it is curious that the Canadian bail out was contingent on the Americans, and ultimately...George W. Bush. This speaks to a much larger dynamic.

Common sense says the Harper was waiting to see IF the US was really going to or not and if they didn't then they would have to think over to do it or not. Bush was right when he said they had to because it would cause more economics problem down the road. Pay now or pay down the road. If GM and Chrysler do merge, there will be alot of people out of a jobs and their pensions could be threaten.

[bush_cheney2004]

Common sense says the Harper was waiting to see IF the US was really going to or not and if they didn't then they would have to think over to do it or not. Bush was right when he said they had to because it would cause more economics problem down the road. Pay now or pay down the road. If GM and Chrysler do merge, there will be alot of people out of a jobs and their pensions could be threaten.

Not sure what you mean here....GM and Chrysler could still fail by April 2009 if fundamentals don't change. Waiting for the Americans to bust their UAW wages down to non-union levels won't fly well with the CAW. Even in bankruptcy and reorganization there may have been better opportunities to change the business model and product mix.

But I will always treasure ....."Bush was right" !!

[eyeball]

I figured this would be a big discussion point today since it means we are putting money in as well.

Thoughts on this?

It'll still be the end of the world as we know it as long as the banks keep squirreling away their bailouts instead of lending them to people so they can buy a car. Why didn't the auto companies simply pressure the government to put pressure on the banks to open up the taps and let the liquid they're hoarding pour out?

Why the hell do we even need banks since its governments that actually produce the money they lend? People should be able to just borrow directly from the government themsleves and cut out a middle-man that doesn't seem to exist for anything but its own sake.

[tamtam10]

After weeks of speculation, Bush has decided to grant Chrysler and GM $17.4 billion without any mention of Ford. You can read the article here:

http://informedvote.ca/2008/12/bush-approv...llion/#more-312

What do you guys think about this decision?

Edited December 21, 2008 by Charles Anthony
merged thread; old OP title: "Bush Approves Auto Bailout – GM, Chrysler to Get $17.4 Billion"

[jdobbin]

What do you guys think about this decision?

I think Iran should be invaded.

[eyeball]

Bump

[Chuck U. Farlie]

Bush said this loan must be paid back in April if the receiver does not turn things around - but if the company doesn't turn things around and still goes bankrupt, how will they repay the loan?

[Moonbox]

It'll still be the end of the world as we know it as long as the banks keep squirreling away their bailouts instead of lending them to people so they can buy a car. Why didn't the auto companies simply pressure the government to put pressure on the banks to open up the taps and let the liquid they're hoarding pour out?

The Canadian banks did NOT get a bailout...period.

I work at a bank. I'm doing more lending than I ever have. I sold 5 lines of credit this week at 6.5% interest unsecured.

Most of you don't have a clue how the financial system works and I won't even bother explaining the finer details unless you really really want to know. There are very simple reasons why mortgage rates haven't fallen with the BoC rate. There are also very simple reasons why the banks aren't lending to Joe Schmo the GM worker.

Yes, it's likely compounding a bad economy, but the Americans are in the mess they're in right now because Democrats back in the early 2000's encouraged cheap, easy lending to help the economy rebound from the .com market crash. We all see how that turned out.

[Moonbox]

It'll still be the end of the world as we know it as long as the banks keep squirreling away their bailouts instead of lending them to people so they can buy a car. Why didn't the auto companies simply pressure the government to put pressure on the banks to open up the taps and let the liquid they're hoarding pour out?

The Canadian banks did NOT get a bailout...period.

I work at a bank. I'm doing more lending than I ever have. I sold 5 lines of credit this week at 6.5% interest unsecured.

Most of you don't have a clue how the financial system works and I won't even bother explaining the finer details unless you really really want to know. There are very simple reasons why mortgage rates haven't fallen with the BoC rate. There are also very simple reasons why the banks aren't lending to Joe Schmo the GM worker.

Yes, it's likely compounding a bad economy, but the Americans are in the mess they're in right now because Democrats back in the early 2000's encouraged cheap, easy lending to help the economy rebound from the .com market crash. We all see how that turned out.

[tamtam10]

I think Iran should be invaded.

I have to agree with you on this one. But rather than a ground invasion I'd like to see Israel get it done from the air.

[Oleg Bach]

I have to agree with you on this one. But rather than a ground invasion I'd like to see Israel get it done from the air.

Real Christmasy thoughts hugh? - I think we should kill people in Iran - yah - oh - and get those pesky Jews in Israel to fly in and blow off some arms and legs from the air with those great American flying machines.. Are you to serious - if you are I have to call you a bunch of dumb kids...what do you think of having your own towns blowned back to the era of the ape? I guess you would fit right in if you survived...why is it we lack the brain power to come up with solutions to our problems - instead like monkey men you just want to crash your club on the head of the other guy....thought you were educated?

Bail out ? _ don't get it...you hand over a billion bucks to car companies that are going to shut down regardless...and the workers will go into the poor house regardless. So who gets the money? Someone is getting it - With Bush - it's like an out going pardoning president who says "I'm getting out boys - free cash for all of my friends - now lets have a drink" - something really smells around here.

[Oleg Bach]

The Canadian banks did NOT get a bailout...period.

I work at a bank. I'm doing more lending than I ever have. I sold 5 lines of credit this week at 6.5% interest unsecured.

Most of you don't have a clue how the financial system works and I won't even bother explaining the finer details unless you really really want to know. There are very simple reasons why mortgage rates haven't fallen with the BoC rate. There are also very simple reasons why the banks aren't lending to Joe Schmo the GM worker.

Yes, it's likely compounding a bad economy, but the Americans are in the mess they're in right now because Democrats back in the early 2000's encouraged cheap, easy lending to help the economy rebound from the .com market crash. We all see how that turned out.

The banks arrogant ungrateful attitude comes out loud and clear "The banks aren't leding to Joe Schmo the GM worker" - How quickly you forget that it was JOE SCHMO that over a period of decades put his bit of cash into your system...penny by penny. It was Joe who paid the service charges - It was Joe that created you and now Joe is not worthy of your intention...remember it will be Joe that might do a run on the bank - and it will be Joe you see laughing at you in the welfare line.

[eyeball]

The Canadian banks did NOT get a bailout...period.

We're not talking about Canadian banks.

But the question stands, why do we even need the stupid things?

[madmax]

Not on the bail out itself...Ford is not getting a bail out but does want a line of credit if needed. At the political level, it is curious that the Canadian bail out was contingent on the Americans, and ultimately...George W. Bush. This speaks to a much larger dynamic.

It would be foolish to loan money to a company that is asking for money from the US government or it faces insolvency should this money not appear. If the US government or no other major organization/bank come up with the mid term amount, loaning money to a company planning to declare bankruptcy makes no sense.

But, yes, an much larger dynamic indeed, which I am certain you are more aware of then maybe someone with no time in the industry.

[eyeball]

I work at a bank. I'm doing more lending than I ever have. I sold 5 lines of credit this week at 6.5% interest...unsecured.

Really? And you're the one with a handle on the finer details of financing?

If you worked for the government you'd be employed by the welfare department.

Edited December 19, 2008 by eyeball

[madmax]

The Canadian banks did NOT get a bailout...period.

You got money from the CPC government which is about to run a $30billion deficit.

I work at a bank. I'm doing more lending than I ever have. I sold 5 lines of credit this week at 6.5% interest unsecured.

Sure you are

Most of you don't have a clue how the financial system works and I won't even bother explaining the finer details unless you really really want to know. There are very simple reasons why mortgage rates haven't fallen with the BoC rate. There are also very simple reasons why the banks aren't lending to Joe Schmo the GM worker.

Yes, it's likely compounding a bad economy, but the Americans are in the mess they're in right now because Democrats back in the early 2000's encouraged cheap, easy lending to help the economy rebound from the .com market crash. We all see how that turned out.

Hmmm, I could have sworn GWB has been in power since 2000. I guess he proved to be blind for 8 years while these policies. Policies which are heavily supported by Republicans and Neocons alike and are criticised for not going far enough.

Policies which the current Federal Government would have been more then happy to follow and implement if they had the time. But then the meltdown put a damper on that idea.

Our banks are heavily protected. The most protected sector in Canada. No one else has the security or protection of banks.

Protectionism is a good thing.

But you don't need our money to prop you up. Give it back to our CPC government. We have some new Senators to pay.

[bush_cheney2004]

...Hmmm, I could have sworn GWB has been in power since 2000. I guess he proved to be blind for 8 years while these policies. Policies which are heavily supported by Republicans and Neocons alike and are criticised for not going far enough.

You would lose that bet.....try 2001.

[White Doors]

We're not talking about Canadian banks.

But the question stands, why do we even need the stupid things?

only people who have money really need them

[Jerry J. Fortin]

Both the American and Canadian bailout of private ventures spells an end to an era. Capitalism has morphed into corporatism. Now the transfer of wealth from the individual to the government has evolved into a transfer of wealth from the individual to a corporation.

It also spells out the terms and conditions of a North American union. That little 20% comment from Harpers government about the auto industry speaks volumes about where the Government of Canada is going.

[punked]

You would lose that bet.....try 2001.

The problem does not go back to Clinton or the Dems it goes back to Alan Greenspan and guess whos party he belongs too?

[eyeball]

only people who have money really need them

What they really need most of all though is the knowledge that their Nanny will be there to catch them in case their banks fall. Someone to keep them safe, warm and well nourished.

Socialism really does suckle after all doesn't it?