The Bush administration came to the rescue of the troubled U.S. auto industry Friday, offering $17.4 billion in loans in exchange for concessions from carmakers and their workers.
“Allowing the auto companies to collapse is not a responsible course of action,” President Bush said. He said that a bankruptcy was unlikely to work for the auto industry at this time and would deal “an unacceptably painful blow to hardworking Americans” across the economy.
The firms must use these funds to become financially viable, or lose the taxpayer money. The official said if the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.
President George W. Bush spoke early Friday about his administration’s plan to avoid collapse of the U.S. auto industry.
Bush made a statement at 9 a.m. EST at the White House.
This bridge loan package for the automakers is the classic PUNT to the incoming Obama Administration. Bush was simply afraid of the forced bankruptcy of a major American industry on his watch.
Political courage from a Republican President that said: â€œIâ€™ve abandoned free-market principles to save the free-market systemâ€¦.â€
Flap will be glad to see Bush return to Texas.
What a disaster.
And, now, it is announced that Secretary Paulson will be going back to Congress to ask to replace the TARP money that has been transferred to the automakers.
Technorati Tags: Automaker Bailout, George W. Bush