Bush said in normal economic circumstances he would not intervene to save the automakers but "in the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action."
The money will unconstitutionally come from money Congress appropriated for financial firms.
They claim to be requiring “hard terms::
The government will put other conditions on the loans, Bush said, including making pay competitive with foreign automakers with large U.S. operations such as Toyota and Honda. Employees of foreign automakers generally make less than those in U.S.-owned plants.
But I’ll believe that when I see it. How can the companies abrogate a contract they signed? Only a bankruptcy judge can do that. And how can you “will put” terms on a loan they already signed. Are the Press just idiots?
Also, how is a bankruptcy “disorderly”. It is a legal affair, done with strict rules and with well considered decisions made by judges with long experience. That sounds WAY BETTER than decisions made by politicians currying union favor.
All this did was waste our money, which won’t be repaid, and reduce the leverage we need to make these companies restructure for success not begging. All so President Bush doesn’t have one more abysmal failure on his Wiki page.
Update: If the car makers don’t meet targets they can “explain” their way out of the loans requirements.