The Treasury Department has turned down a request by General Motors for up to $10 billion to help finance the automaker’s possible merger with Chrysler, according to people close to the discussions.
Instead of providing new assistance, the Treasury Department told GM on Friday, the Bush administration will now shift its focus to speeding up the $25 billion loan program for fuel-efficient vehicles approved by Congress in September and administered by the Energy Department.
Treasury officials were said to be reluctant to broaden the $700 billion financial rescue program to include industrial companies or to play a part in a GM-Chrysler merger that could cost tens of thousands of jobs.
But it remained unclear whether the officials were also seeking to avoid making any decision that would conflict with the goals of a new presidential administration. The Democratic candidate, Senator Barack Obama, has said in recent days that he supports increasing aid to the troubled auto companies, while Senator John McCain has not said whether he would support aid beyond the $25 billion.
I find the selection process as to who gets a place at the public feeding trough and who does not to be less about fairness, or even economics ,but about who is inside and who can be left behind. Anyone who takes comfort in this process is in for a very rude awakening. Remember the “old days” when it was said “If GM sneezes everyone gets a cold”. Not anymore it seems.
Intercessor
[i]I find the selection process as to who gets a place at the public feeding trough and who does not to be less about fairness, or even economics, but about who is inside and who can be left behind.[/i]
I beg your pardon, but that is what politics have [i]always[/i] been about: rewarding your friends and punishing your enemies. Democracy does not change this equation. All you’re doing is seeing who can muster the bigger army to gain access to the spoils.