Tuesday, December 9, 2008

Auto Bailout Deal Advances

GM this year: 1st Qtr Loss   $3.3 billion
   2nd Qtr Loss  $15.5 billion
Without Government assistance, top officials said, the company qould run out of cash to operate early in  2009.

Ford  this Year  1st half loss   $8.6 billion
                              3rd Qtr loss  $2.9 billion

Chrysler this year sales have fallen 25%

Their request: called for $34 billion in federal loans to ward off bankruptcy - sales continued to plunge in November dropping 37% for Ford, 41% for GM and 47% for Chrysler.

However the US administration is considering loaning the auto  makers $15 billion.

Would you loan money to someone who is going bankrupt? If you would, would you loan them less than half they need to stave off bankruptcy?

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