U.S. Government Taking Over Automakers

House clears $25bn for carmakers

The House of Representatives on Wednesday approved a $25bn package of low-cost loans to help hard-pressed carmakers and their suppliers finance plant modernisation at a time of restricted access to public capital ­markets.

The automotive loans are separate from the proposed $700bn bail-out for the banking sector, which is still being debated in Congress. The House approved the measure 370-58, setting the stage for Senate approval within days.

Executives of General Motors, Ford Motor and Chrysler and their suppliers have lobbied heavily for the loans. Both presidential ­candidates, John McCain and Barack Obama, have expressed support.

The loans will not take effect until the energy department has written detailed regulations dealing with, among other issues, which investments will qualify and conditions for repayment. Congress has directed the department to begin writing the regulations quickly and will provide any extra staff required to do so. One lobbyist said he hoped the regulations would be completed by early 2009.

But critics have questioned the wisdom of supporting the motor industry with taxpayers’ money, especially in the wake of the huge amounts being provided to Fannie Mae, Freddie Mac, AIG and Wall Street investment banks.
re: 'McCain and Obama have expressed support'

In addition to the mortgage industry, the insurance industry, and Wall Street, the U.S. automakers are soon to become the property of Big Brother also. Congress has directed that the regulations be written up quickly...the ship is sinking, you see. The puppet politicians have already abandoned ship...but will keep up the pretense as long as necessary so as to please their master.
2Kings 17:35 "Ye shall not fear other gods, nor bow yourselves to them, nor serve them, nor sacrifice to them"
compare: Fannie, Freddie, and Globalizing America (follow links, connect dots)

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