Automakers grab loans, look to Obama White House

By DEB RIECHMANN, Associated Press Writer

WASHINGTON – President George W. Bush gave the U.S. automakers $17.4 billion in emergency rescue loans, but the fate of the industry is in the hands of President-elect Barack Obama.

Simply letting the carmakers collapse was not an option amid a recession, housing slump and financial credit crunch, Bush said in announcing the short-term loans and demanding tough concessions from the automakers and their employees.

“By giving the auto companies a chance to restructure, we will shield the American people from a harsh economic blow at a vulnerable time,” the president said in his Saturday radio address. “And we will give American workers an opportunity to show the world once again that they can meet challenges with ingenuity and determination, and emerge stronger than before.”

Detroit’s Big Three cheered the action and vowed to rebuild their once-mighty industry, though they acknowledged it would be tough to fight their way back from the brink of bankruptcy. If the carmakers fail to prove viability — a positive cash flow and ability to make good on the loans — by March 31, they will be required to repay the government loans.

That’s something they would find all but impossible to do.

…(Read full article)

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Exactly what we’ve been saying. If an Arkansas hillbilly like me could figure this out, you’d think our elected officials in DC could have.

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