US Auto Industry Bailout

From correspondents in Washington

April 22, 2009 02:17am

THE US Treasury will lend a further $US5 billion ($7 billion) to General Motors and $US500 million ($700 million) to Chrysler as the troubled automakers work on their viability plans.
A report released by the inspector general for the Treasury's financial bailout program specified the amounts of working capital to be provided under rescue plans for the two Detroit, Michigan-based giants, which are seeking to stave off bankruptcy.

GM would get up to$US5 billion for its 60-day period to revamp its plans for viability, the report noted.

Chrysler will get $US500 million as it seeks to seal an alliance with Italian automaker Fiat to prove its ability to weather the crisis in the auto industry.

GM and Chrysler have received a combined $US17.4 billion in public aid since December, in an effort to stave off collapse as the world's largest economy suffers its second year of recession.

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Aussiejeff said:

The never-ending bailout continues un-abated...

http://www.news.com.au/heraldsun/story/0,21985,25368906-5005961,00.html

Of course, Unca Obama-Sam is NOT protectionist!

What a joke. Just keep setting dates into the future and keep throwing $Billions to "make the bad problems go away, daddy?"

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MrBurns said:

I dont believe it, just makes me sick, non of those bastards, including ours, has any idea.

They should just nationalize them after all the public now own them dont they ?

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[size=+2]Clueless investors buy worthless old GM shares[/size]
Michael De La Merced and Zachery Kouwe
July 12, 2009

SHARES in "General Motors", the company says, are worthless. But many US investors apparently have missed the message.

GM's stock, which now represents the company's bankruptcy estate, continued an improbable rise in price last Friday, prompting concern by company officials and securities regulators that investors are confused.

The shares, which trade under the ticker symbol GMGMQ, gained as much as 43 per cent after GM announced it had completed the sale of its assets to an entirely new company. About 75 million shares traded hands until the securities industry's self-regulator, FINRA, halted trading, citing "extraordinary events".

The shares closed at $US1.15 ($A1.47) a share, up US31.3 ¢, or 37 per cent, for the day, giving the bankrupt company a market value of $US702 million, up from $US512 million last Thursday. FINRA decided to halt trading in the shares after concluding investors thought they were buying shares in the new GM. The new GM, formally General Motors Co, is privately held and will not seek a public listing until al least next year.

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