It no longer makes any sense to wrangle over whether the federal government should extend loans to GM and Chrysler:
Dec. 19 (Bloomberg) — General Motors Corp. and Chrysler LLC will get $13.4 billion in initial government loans to keep operating in exchange for a restructuring under a rescue plan announced by President George W. Bush.
The money will be taken from the TARP funds approved by Congress to be used to bail out financial firms.
I doubt that anybody believes this is anything but a bridge loan to tide GM and Chrysler over until March. Let’s hope the oversight of these loans is better than the oversight of the TARP so far. The track record isn’t very good.
