Bush Announces $17.4 Billion Auto Bailout

President Bush just announced loans to the GM and Chrysler totaling $17.4 billion: $13.4 billion now and $4 billion in February, if they, according to Times, "undertak[e] sweeping reorganizations to show that they can return to profitability." The money will come from the TARP bailout.

Bush said he had to "shield the American people from a harsh economic blow at a vulnerable time... If we were to allow the free market to take its course now it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers. These are not ordinary circumstances.” Here's video:

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Stocks are rising on the news. The Wall Street Journal notes:

The deal generally tracks key provisions of the bailout legislation that nearly passed Congress earlier this month. But it is relatively lenient in allowing the companies to show their viability. It defines viability as having a positive net present value -- a way of gauging the companies' worth, taking into account all their future obligations.

Notably, it provides significant flexibility to the companies in showing their viability. It sets out targets for the companies to hit in determining their financial health, such as reducing debt and current cash payments for future health care obligations.

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By Jen Chung in News on December 19, 2008 10:10 AM

Comments [rss]

NannyState

Gawd, is he still around? I thought he packed up the motorhome and farted back to Dallas to play "French Chateau" with all the other smelly oilies and rattlesnake ranch magnates.

nohateparade

"let's see how badly we can fuck up everything for the new guy."

sinisterteashop

He's the turd that fell from Teddy Roosevelt's horse.

glennQNYC

UAW bailout.

r1b2

He really is a schmo. Look at that stupid puss of his.

blablanyc

The markets are on a steep decline after the announcement.

blablanyc

I guess the $17.4 billion will go the bankruptcy lawyers.

Politburo

Steven: Congress passing it gives more political cover. While Bush is a lame duck and the GOPs in Congress are against the bailout, it's still a fact that a Republican President is now leading the charge.

madzack

its just the illusion of a government at this point and time. these companies are running everything.

Steven

What was the point in the house and senate voting if the president has the authority to pass it anyway?

matty

I want GM to sell off cadillac, saturn and chevy trucks and then dissolve itself. Those two alone are the only money makers in their auto fleet.

RevWaldo

You need more than a car, you need a car company!

SHIFT_CONFIDENCE

- recent Nissan commercial

r1b2

The TARP money was to rescue banks. It is NOT a slush fund. Shame on this administration.

Felix Hoenikker

8

The lube job is for your ass come April 15.

bxbrian

do we all get free cars now?

or, failing that, a free lube job?

Internet Handle

I like how he poses in front of a portrait of a more popular President. Doesn't it just make him seem crappier by comparison?

grandzu

has bush done anything without citing "extraordinary circumstances". that's his reason for all unprecedented, outrageous actions and is no reason at all.

robingee

Look at his idiot face.

sinisterteashop

I'm happy for the autoworkers but kind of sad the Bush admin. quit their stonewalling because we were getting awfully close to a bipartisan investigation of Cheney's waterboarding fetish. Them Repubs are idiots but they're not stupid.