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That
strong gush of wind you felt was not the brutal snowstorms burying the
Midwest but the city of Detroit collectively exhaling due to a merciful
bailout by the White House.
President George W. Bush on Friday
pulled the domestic auto industry away from the fiscal cliff with a
last-minute, $13.4 billion federal loans to help the General Motors and
Chrysler LLC to remain viable entities into early 2009.
With
auto sales plunging to 26-year lows and the U.S. economy perilously
close to a historic collapse, Bush rescued the industry with $9.4
billion in allocations while Chrysler received the other $4 billion.
Ford Motor Company has sufficient cash reserves to last into the early
part of next year.
“Government has a responsibility to safeguard the broader health and
stability of our economy,” Bush said in a press conference to announce
the decision. “If we were to allow the free market to take its course
now, it would almost certainly lead to disorderly bankruptcy and
liquidation for the automakers.”
Detroit Mayor Kenneth V. Cockrel immediately released a statement
outlining the beleaguered city’s and the state of Michigan’s gratitude
for the federal fiscal intervention:
“We as a community have worked hard to promote Detroit’s auto industry
as America’s industry. The City of Detroit is grateful to President
Bush for his support and making money immediately available for our
automakers now and again next month. We also want to recognize the hard
work of Senators Levin and Stabenow and the entire Michigan
Congressional Delegation. It is because of their hard work and due
diligence that America’s economy will keep on working. Our work however
is far from over. While the immediate funding is certainly good news
and a step in the right direction, it is not nearly enough to jumpstart
America’s economy. We look forward to continuing our
advocacy on behalf of Detroit and the auto industry.” – terry shropshire
