To the Rescue: Bush to Give Low-Interest Loans to Carmakers
@whiteheather39 (24403)
United States
December 19, 2008 7:16am CST
What is your opinion on this is decision? I am very interested to see what "strings" are attached. Will the unions still refuse to accept employee pay cuts? I am still shocked that an hourly employee earns so much:
"The total of both cash compensation and benefits provided to GM hourly workers in 2006 amounted to approximately $73.26 per active hour worked. http://bigthreeauto.procon.org/viewadditionalresource.asp?resourceID=2050
The White House has come to the rescue of General Motors and Chrysler by providing them with low-interest loans, ABC News has learned.
The Whitehouse plans to step in to help the ailing auto industry.Under the plan, which could be announced as early as this morning, the auto giants will be able to stay afloat into the new year.
The White House has been talking to the Obama team on its strategy, and the incoming Democratic administration has expressed no objections to the plan.
The loans come with strings attached. The automakers will need to restructure, getting tough concessions from creditors, suppliers and the labor union. The key phrase from the White House will be "viability."
The White House did not want to do this and in ordinary times, the Bush administration might have let these companies go down. With the economy so bad, however, the White House decided it could not afford to let these companies collapse.
http://abcnews.go.com/Politics/Business/story?id=6494698&page=1
3 people like this
8 responses
@lilwonders456 (8214)
• United States
19 Dec 08
THis was a no win situation. Bail them out people will complain their tax dollars are bailing them out for their own mistakes and get mad. If they did not bail them out then they would be blamed for putting millions out of work and causing our ecomonic problems to get worse.
What truely ticks me off about this situation is our Congress. It was their job to make the decision. But sense they knew it was a no win situation they passed the buck and forced Bush to do it. They are a bunch of weeneys. We pay them to make the hard decisions. But they seem incapable or unwilling to do that. They would rather he take the fall for which ever way it went. Why do we elect them again?
1 person likes this
@whiteheather39 (24403)
• United States
19 Dec 08
Yes Bush will be the fall guy if this goes sour.
1 person likes this
@lilwonders456 (8214)
• United States
20 Dec 08
Congress did not want to touch this with a ten foot pole. They knew it had a good chance of blowing up in their faces which ever way they went. So pass the buck is the name of the game in washington now.
@Lakota12 (42600)
• United States
19 Dec 08
yes I heard some of hihs speach on the news this morning sounded to me like Bush did this alot for the families that work there and that is a very high wage thats why cars cost so much.
But then to they need to know alot to do this work with the computer chips and all that go into the cars now adays. I would think they coulod go back to making cars the way they used to where you could work on them yourself with out going to the dealer to have them worked on . Theri machanics get I think they charge me 90 and hour for labor dont really think the machanic gets it all tho.
Lets hope that the car companies can pll out of this and pay back the short term loans
1 person likes this
@irisheyes (4370)
• United States
21 Dec 08
I'm not surprised that the compensation with benefits comes to so much. I think I read that the actual dollar amount is $25 - 29 per hour and the rest is bennies. When I worked for the Commonwealth of Pennsylvania, they used to give us a print out at the end of the year that indicated we were actually being paid over twice our salary when the benefits were factored in. At the time, I thought is was bull but that was before I had to pay for my own Blue Cross/Blue Shield.
I really hope something can be worked out with the auto makers because they are one of the few industries that pay a living wage to the rank and file. Too many people are trying to survive on minimum wage with no benefits. The union makes the difference and the unions all know what happens when they start give backs. Those benefits never come back to the workers again.
@max1950 (2306)
• United States
19 Dec 08
i'm tired of paying taxes for other people's screwup's. i just think bush dosen't want to go out with the big 3 tanked on his watch,he already has iraq.i truly believe that this bailout will not provide the american public with more reliable car's.what really get's me is the union's not wanting to give anything, take a pay cut or lose your job and stand in line i mean if a company can cut 3500 jobs just what were they doing if they don't need them,more taxpayers money waisted.
1 person likes this
@kerriannc (4279)
• Jamaica
19 Dec 08
Well Whiteheather, what one should always remember that the Automobile industry is a earning one for the America public. So it will need to be help out. See next year Formula 1 is in doubt because a lot of sponsors have pulled out because of the economic condition. The world is not how it was and we need to realize which of the industry is critical and which is not. This industry is one of the critical one and if it goes down then Germany and other country that makes car will be licking their fingers. Whatever assistance need they should get it.
@whiteheather39 (24403)
• United States
19 Dec 08
Of course I expect help for the all the people who would lose their jobs. I am really not too worried about the next year's Formula 1.
@zhuhuifen46 (3483)
• China
20 Dec 08
It is really puzzling how GM, a said giant, gets shrinking overnight.
I have been following the attitude of the US government toward its auto industry, as I used to work in a joint venture co-run by GM. At last Bush turns out somewhat positive. I hope it will help a bit for the moment, and the company can maintain and improve its operation as supposed.
@winterose (39887)
• Canada
19 Dec 08
I think it is a good strategy, there are strings attached, they have to clean up their act, so they will spend better in the future. The last thing americans need right now is more people (auto workers) out of work.
@urbandekay (18278)
•
19 Dec 08
It is clearly wrong and tyrannical for the US government to give taxpayers money to private firms. An amendment to your constitution calls now upon all patriotic Americans to take up arms against the government and overthrow them. This Americans, is your patriotic duty and all that fail to take this action should not consider themselves good Americans
all the best urban
