Loan for Big 3 Included in Spending Billby Tim Manni
Under the umbrella of the largest government financial intervention since the 1930’s, the House, as part of a large US spending bill, approved a $25 billion loan package designed to aid Detroit’s Big Three automakers — Chrysler, Ford, and GM.
The loan package, very intently not referred to as a bailout, will support the Big Three as well as some of their main auto parts suppliers. Down 20% already this year, the car market will not likely gain any ground in 2009, and by some estimates, Ford and GM could go into bankruptcy as soon as the second half of 2009. The spending bill will be passed onto the Senate where it is expected to be approved as well.
More details to follow.