The Bush administration came to the aid of the troubled U.S. auto industry Friday, offering $17.4 billion in loans.Ailing automakers will get $17.4 billion in loans from the federal government under a rescue package the White House announced on Friday for the industry crushed by the financial credit crisis and deepening recession.
According to terms of the deal, the firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable, 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. "If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy," Bush said at the White House.
Of the total, $13.4 billion will be paid out in December and January, administration officials told reporters in a briefing. The last $4 billion is contingent on the second installment of the Wall Street bailout funds from Congress.
Of the total, $13.4 billion will be paid out in December and January, administration officials told reporters in a briefing. The last $4 billion is contingent on the second installment of the Wall Street bailout funds from Congress.
I guess the President has opened his eyes up to see what mess his administration has caused during these past eight years.
