President Bush said the loans "will give automakers three months to put in place plans to restructure into viable companies -- which we believe they are capable of doing." He added that "if restructuring cannot be accomplished outside of bankruptcy, the loans will provide time for companies to make the legal and financial preparations necessary for an orderly Chapter 11 process that offers a better prospect of long-term success -- and gives consumers confidence that they can continue to buy American cars."
President-Elect Obama added, "The auto companies must not squander this chance to reform bad management practices and begin the long-term restructuring that is absolutely required to save this critical industry and the millions of American jobs that depend on it."
So, Congress and the President approved $700 Billion to assist the banking and credit industries. The $17 Million for GM and Chrysler will come from that money pool.
Why can't the banks loan this money to GM and Chrysler? Maybe because professionals in the banking industry understand that they are risky companies?
Is it even possible that GM and Chrysler will be able to prove enough "viability" in the next three months?
In reality, $17 Billion is pocket change in the current Bailout Nation. Not to mention, Obama's pork barrel government "stimulus" plan that will cost well $1 Trillion!
It just sets a dangerous precedent. Who is next? How many industries are going to use the same argument? What about the states like California and New Jersey seeking Federal money?
Looks like Bush just wants a quick escape and not be remembered as the Man Who Let the Auto Industry Fail.
It's the Messiah's turn now! He can fix anything!
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