Congress has approved $25B in loans to help automakers build more fuel efficient technologies using new technologies. It's contained in the Budget Continuing Resolution (which keeps the US government running through the end of 2008). The loans are intended to finance retooling of existing manufacturing facilities. Right now, it's heading to the President for his signature.
Innovation or indirect subsidy?
With awareness of the larger financial bailouts on Wall Street taking place by the government right now, doe this strike you as a legitimate way to help struggling firms (almost crippled by legacy costs for healthcare and pensions) or an example of government "cherry-picking" firms and industries to keep viable?
This, by the way, represents the first government intervention (in the auto industry) since the Chrysler bailout in 1980.
So, which do we have here? A boost in the arm for an industry that is having a difficult time maintaining an competitive edge? Or a bailout? Has this become a pattern for government--or are we just facing extraordinary times right now?
I'd love to hear some opinions on this.
--Beth
I think it's a little of both, being from Michigan we witnes this madness first hand. With the Wall Street Bailout floating over the US consumers pocket books and lifesavings,etc. This is a very scary issue. Bailing out the Big Three, Wall Street, Mortgage Back Securities, what is left. It's a bailout at the consumer expense - the Government has to much control and that's why we are in this mess, with the Bailouts now the US consumers owe the Government something more...... I'm surprised we are not charged the per volume of Oxygen that's consumed. Just a thought.
Posted by: Networking4biz | September 30, 2008 at 05:39 PM
Every day, I keep hoping that some concrete progress will have been made on the overall bailout issue--and every day, our government's inability to work together enough to act scares me more.
Posted by: Beth | October 01, 2008 at 12:42 PM