Taxpayers Have Invested Billions In Detroit
Wednesday, June 10, 2009, 9:24 AM | Leave Comment
There is an article on foxbusiness.com “Taxpayers Have $80.3B Invested in Detroit” by Peter Barnes published on June 8, 2009.
In the article, Peter says:
The taxpayers’ investment in the U.S. auto industry rose to $80.3 billion, after the U.S. Treasury provided a new $30.1 billion bankruptcy loan to General Motors on Wednesday, two days after GM filed for bankruptcy, a new Treasury report said.
The funding amounts, through 15 transactions since December, total more than 10% of the $700 billion in bailout money Congress approved for the Troubled Asset Relief Program, or TARP, in October, when it was expected to help stabilize mainly banks.
The new accounting, detailed in a regular TARP report the Treasury posted to its Web site late Friday, shows the government more than doubled its commitment to the industry in a month, with the new loans in bankruptcy for GM; $3.8 billion in bankruptcy financing for Chrysler; and another $7.5 billion investment in GMAC, the troubled former auto finance division of GM, among other auto industry-related transactions.
Moral of the story
There is no moral of the story. When our children trip and fall, we don’t run to pick them up immediately. We tend to wait so the children could learn to stand up by themselves. These things happen. At the same time, $80.3 billion is a considerable amount of money to give to some entity in less than 6 months.
Read the article in full: Taxpayers Have $80.3B Invested in Detroit.
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