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Bush comes to the rescue of GM, Chrysler, and the UAW. December 19, 2008

Posted by neoavatara in Politics.
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The Bush administration today declared a short term bailout of the auto industry, costing around $17.4 billion, of whihc $13.5 billion comes from the TARP.  Strict conditions are to be applied, including strict restrictions on manaagment compensation.  Additionally, under the radar, the regulations would require that labor costs meet foreign company costs by the end of 2009; highly unlikely the UAW will accept that.

Interesting thing about this; unlike if Congress has passed it, now, any of these guidelines for the loan can be changed instantly by the in coming administration.  So we will have to see if GM and Chrysler are hard up enough to take the gamble that Mr. Obama won’t impose even more strict restrictions.

Also, Hank Paulson is to ask Congress for release of the remaining half of the $700 billion of TARP not already allocated.  The bailout spree continues.

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