U.S. Automakers, Freddie Mac (FRE) and Foreign Exporters Next in Line for Bailout Handouts
Contrarian Profits (November 17th, 2008) Writes:
This week is shaping up to be another active one on the bailout-and-financing front. First and foremost, Congress returns to work this week to consider a once-unthinkable proposal: Put up billions in taxpayer-backed loans so that Detroit’s “Big Three” can be saved. Expect a fight, however, as the bailout debate finally moves past banks to focus on General Motors Corp. (GM), Ford Motor Co. (F), and Chrysler Corp.
The situation is dire. GM is burning through cash at a pace that could mean bankruptcy, and all three players are struggling with high costs, weak vehicle sales, frozen credit lines and dwindling cash reserves calling into question whether they can survive much longer without government help. The answer, of course, is that they probably can’t.
But it’s here that the debate turns political, the Detroit Free Press reports. Congressional Democrats are pushing for some form
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