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The 'Big Three' testify on Capitol Hill
Top Executives from the Big Three American automakers testified before the Senate Banking Committee Tuesday, pleading for a loan of $25 billion from Congress to keep their companies afloat.
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in the meantime they laid off workers and cut production so whats new
I'd say those of you who don't believe in free speech, the 1st amendment or who can not defend your bad position so that you have to resort to saying "stfu" should stfu.
Why not just respond to his argument about CEO pay?
But the market has "said" that the interest rate was too low to compensate for the high risk indicated by the balance sheets of the auto corps. This is why it is a taxpayer subsidy. We would be giving the auto industry below-market interest rates.
It is like buying a junk bond with a non-junk interest rate. It is a bad deal for the bond purchaser, and that is the taxpayer.
Just let them go through the bankruptcy process. Most of the jobs will come out the other side.
Extending home loans to people who could not make the payments is one cause. This problem had two sources: 1) Fannie Mae and Freddie Mac, both government-chartered corporations, were told by congress to make bad loans in order to help minorities buy homes at taxpayer expense. 2) The government set low reserve requirements for banks, and then implied that the govt would bail them out if they went bad. So the banks made risky loans knowing they'd get a bailout.