Auto bailout loan gains direction as government looks to save jobs
December 10, 2008 by admin
The government bridge loan to the auto industry could become a reality as early as this week. The House and Senate were working closely with the Whitehouse to work out some of the remaining details of the program that would be a lifeline to the auto industry. The 15 Billion dollar bridge loan is believed to be a necessity to get finalized this week as General Motors has threatened a potential bankruptcy that could be devastating to the economy.
GMAC announced this week that their application to become a bank holding company may not go through if they are unable to get bond holders to restructure their current debts. This move will be critical to the sucess of the worlds largest auto company, as GMAC plays a key role in providing the financing to help consumers obtain auto loans.
There is a chane the bailout bill could stall if Republicans who oppose the auto industry loan plan are able to block its passage. It would be hard to imagine a scenario where the governement would do something that could potentially be catastrophic to the job market, following last weeks announcement that in November over 500,000 jobs were lost.