Detroit Bailout Looks Unlikely
Posted on Nov 18, 2008
The chief executives of the Big Three American car companies head to Washington Tuesday along with the head of the United Auto Workers to beg Congress for a bailout that seems less and less probable.
Lawmakers are loathe to head back to the bottomless piggy bank, while the White House refuses to slide down the “slippery slope” of letting just anyone take a chunk of that $700 billion.
Although GM has warned that its cash shortage could lead to insolvency by Christmas if Congress does not approve the funding, the outgoing administration of George W Bush firmly opposes providing a loan through the $700bn financial bail-out approved last month.
“There’s not an appetite in Congress, or in the administration, to open up the [bailout] funding for individual industries,” White House spokeswoman Dana Perino said [Monday]. “Once you start down that road, it’s a slippery slope.”
Flickr / SteelCityHobbies