Friday, August 22, 2008


Or, capitalism on the march!
The Big 3 Detroit-based automakers are seeking about $25 billion in federal loans as they struggle to ride out a steep downturn in U.S. auto sales, The Wall Street Journal reported on Friday.
The plan is for the government to lend some $25 billion to the automakers in the first year at an interest rate of 4.5 percent, or about one-third what the companies are currently paying to borrow, the report said.
4.5%? So they are currently paying 13.5% to borrow money on the open market? Ouch!

Here's more directly from the WSJ, which has the unfortunate habit of disappearing articles behind their paywall when you least expect it.
What's more, the government would have the option of deferring any payment at all for up to five years.
And why would the government defer any payment? Because the 'Big Three' say, "Pretty please"?

Blog Simple also has some financial difficulties, what with the slow economy and rising prices. We will continue to refrain from asking our readers to contribute, you probably have your woes as well, but why can't we climb on the gravy train from Washington? Bail us out Congress, and we'll happily join hands with you on or national march to hell.

UPDATE: That was quick, turns out that they're asking for $50bn. Pretty soon they'll be talking real money.
(h/t Moon of Alabama)


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