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It sounds like good news. I'm curious of the details, should this pan out.
 

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If this comes to pass, hopefully it helps the Big 3 (GM/Ford at least) stay solvent and on the level for the next 24months or so until some of the birds come home to nest (Cruze, finally seeing benefits from UAW concessions etc)
 

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$6 billion in credit... so probably a low-interest loan of some kind. Not really a giveaway.

For reference, the landmark Chrysler loan guarantee was for only $1.5 billion.

...and once you adjust for inflation, $1.5 billion in 1979 becomes $4.45 billion in 2008. So to get similar results the govt would have to shell out $4.45B*3 automakers = $13.35 billion. $6B is not even half of what the gov't should do if the really want to help the Big Three.

Now, granted a Big Three bankrupcy isn't guaranteed like Chrysler was in '79, but these numbers give a good idea of the [supposed] magnitude of this proposal.
 

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I really don't agree that the government should bail out these car companies for their mistakes. Now however if they do, I agree with Mgescuro about having stipulations on that 6 billion dollars bail out. We do not want Rick pissing off all that money for something stupid like trucks and Suvs. The money should go towards technology for hybrids, lithium Ion battery and better MPG.
 

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I'd like to think they would do the right thing with the money but perhaps some stipulations on how it can be used would be useful.
 

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For years Congress has impeded drilling for oil, reducing supply while demand increased the price. In December '07 Congress passed a new set of CAFE regulations. Between the two the automobile industry is in the tank. The solution comes from Michigan's Congressional delegation:

Senate Dems seek $6 billion in loans for auto firms

http://www.freep.com/apps/pbcs.dll/article?AID=/20080731/BUSINESS01/807310368/1014/BUSINESS01

"No man's life or property is safe when the legislature is in session" :mad:
 

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With one bad move after another, the big 3 need to dig themselves out of this mess. This is just an example of one entity that can't control spending helping another entity that can't control spending.

That's awesome that the legislative branch of the American government won't help it's own citizens by drawing up a real, coherent energy plan, but choose to waste everyone's time and tax dollars on this? While they are at it, they can stop the tax incentives on corn based ethenol and start pushing alternative fuels that make since (you know, the one's that are not made in a primiary state).

You know what would be a great stimulus plan that would put hundreds of thousands of Americans to work? lifting the drilling ban in some places.
Gas would be cheaper, people can spend more money on traveling and non-essentials, the economy will pick back up and more Americans will be working to secure our energy dependence.


What is this going to accomplish? This just proves the point that GM and Ford and Chrysler don't have to be competative- because when times get tough, the government will bail them out.

It's like the rich, lazy kid who drivesCorvette in college. Why bother working hard when your parents will pay for everything? Is there any way that he could afford a car like that on his own?




If they want to help American car companies- then put a huge tax break on the hood of the Volt to make it more affordable to customers (and something similar from Ford and Chrysler's hybrids).
 

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If the Gov't wants 35 MPG, they are going to have to help pay for it. However, this plan they will prob make money on it like the did with Chrylser. I think that this is a great plan. If it works out that the gov is making a small amount of money on it,offer the automakers more money. 50 MPG with 350HP:yup: lol I know
 
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