Apparently if you are a huge mismanaged bank, you can show up in Washington on a Sunday night and have $85,000,000,000 by Monday morning with few strings attached. However, if you are a 100 year old automobile company whose survival impacts somewhere up to 3,000,000 people and you need a LOAN, then you can just forget about it.
Make no mistake folks, this was not about the pea on the plate of $14B, it was about breaking the union's back (UAW). So for the sake of getting a political toe hold, they are going to torpedo the industry and ALL of us are going to feel it, and it's not going to feel good people.
Lastly, you think $14B is a lot? Wait until you see how much it will cost us in bankruptcies, not just the car companies, but all the down stream businesses that supplied them as well. Oh yeah, if they file for bankruptcy there will be more debt placed on the Federal Pension Corporation that is already underfunded by $44B as result of past massive bankruptcies, airlines, etc. And the layoffs and firings? The extra burden on tax payers will be huge. And just in case you really think this is about protecting the tax payer, think again - there is this
issue of $2,000,000,000,000 that they refuse to disclose who they gave it to.
Take a look at world markets today and in particular our own. Well done boys, you caused the entire world to panic today!
What would bankruptcy look like? Click here and read.My previous post on GM.