Bush did something I approved of. Regardless of whether GM and Chrysler "deserve" to be helped, this would be a terrible time to let them collapse. Better our tax money go to people who are doing real jobs, and not to bonuses for the financial executives who made what would have been an inevitable economic downturn much worse. I say inevitable because of the stagnation or actual declining of wages (allowing for inflation) and the high levels of debt.
http://www.msnbc.msn.com/id/28300781/
Bailout offers brief reprieve for automakers
Package demands tough concessions from union; prospects uncertain
By Roland Jones
msnbc.com
updated 5:50 p.m. ET, Fri., Dec. 19, 2008
U.S. automakers got a $17.4 billion lifeline from the Bush administration Friday, but now comes the hard part: Winning tough concessions from their unions and turning around their ailing businesses.
Declaring that he was unwilling to allow the auto industry to collapse, Bush announced a plan to loan $9.4 billion to General Motors and $4 billion to Chrysler this month. An additional $4 billion would be made available to the industry in February, after President-elect Obama has taken office.
Ford Motor, the other major U.S. automaker, has said it does not need funding in the immediate future.
The terms of the loans to GM and Chrysler require the carmakers and their unions to make significant concessions. (The term sheets have been posted at the Treasury's Web site.)
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