There will be no bailout for US automakers, says NYT, citing sources familiar with the matter. Instead, the Bush administration will focus on expediting the $25 billion loan the industry is promised. Ostensibly that money is to help them retool their operations to build more fuel-efficient vehicle cars. Yeah, right. Somehow we’re guessing that cash fill find its way to all kinds of things that are tangentially related to the state goal (like shutting down factories).
The article also hints that the story isn’t done yet:
Beyond that, the administration is also bringing the Commerce Department into discussions about channeling additional aid to the automakers.
Even if the (current) administration has rejected pleas for an overt bailout, we’re guessing there are plenty of stops to pull before, you know, actual bankruptcy becomes an option. Barack Obama has said that he does support some help from Detroit, so perhaps the Bush administration is happy to just leave this one to its successor (whoever that is). If all the reports about the credit default swaps situation making Lehman look like childs play (true or not), we’re not going to see that possibility come close to fruition.
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