Now that the Treasury Department has rescued Freddie Mac and Fannie Mae to the tune of $ 200 billion, it’s not surprising that other industries might be lining up for their chance at the federal trough.
First in line; the Big Three automakers:
WASHINGTON (AP) - Auto industry allies hope to secure up to $50 billion in federal t loans this month to modernize plants and help struggling car makers build more fuel-efficient vehicles.
Congress returns this coming week from its summer break, and the auto industry plans an aggressive lobbying campaign for the low-interest loans.
The situation is growing dire after months of tumbling sales, high gasoline prices and consumers’ abandoning profitable trucks and sport utility vehicles.
Lawmakers authorized $25 billion in loans in last year’s energy bill, and automakers now want lawmakers to expand the pool of money available to $50 billion over three years.
Isn’t this what private credit markets are supposed to be for ?
H/T: Coyote Blog
September 8th, 2008 at 4:17 pm
I’m with you on this.
Better to just let them fail.
Nothing is too big to fail. Nothing.
September 8th, 2008 at 4:28 pm
And yet it’s a Republican Administration that is doing this, and setting a precedent that I fear we’ll be dealing with for some time to come.
Once again, as it has been so many times over the past eight years, I am convinced now more than ever that my two votes for George W. Bush were the worst voting mistakes of my life. It would’ve been better to just vote for the LP candidate than admit that I’d fallen for what turns out to be a lie.
September 20th, 2008 at 11:26 pm
Democrats created the Fannie Mae and Freddie Mac problems years ago, in a well intentioned but failed effort to allow low income groups to buy houses. They stopped ALL eforts at reform until it was too late. Now they are trying to blame Bush, McCain and Republicans, everyone but themselves. That’s the Gods truth and here is the proof:
http://strategicthought-charles77.blogspot.com/2008/09/democrats-created-fannie-mae-and.html