Here is the question: why won't people in the bond market or at banks loan GM and Chrysler this money at such low interest rates? If these concessions were enough to get the companies out of their problems, shouldn't people in the bond market be willing to loan GM money at that interest rate? Fox News has the WH announcement here
The White House will enable Detroit's ailing automakers to survive a little longer by providing low-interest loans, FOX News has confirmed.
President Bush will make a statement on the rescue plan at 9 a.m. Friday. Under the plan, General Motors and Chrysler will be able to make it into the new year when President-elect Barack Obama takes the reins of power.
According to ABC News, which first reported details of the plan, the loans come with strings attached. The automakers will need to restructure, getting tough concessions from creditors, suppliers, and the labor union. . . .
Labels: bailout, mortgagecrisis