House approves $25 billion for automakers

With little fanfare -- and much less reasoned debate -- the House of Representatives approved $25 billion in artificially low interest, taxpayer-funded loans for the U.S. auto industry. The Senate and President are expected to provide their approval in the next few days, but the details on how loans would be doled out will not be decided until after the November elections.

Given the $700 billion gift to bankers currently being pushed through Congress, it would be hard for Washington to take a principled stance against an auto industry bailout. But the industry had been hoping that the terms and conditions of the loans would be decided before the election, when both parties are looking to win votes from industry workers in battleground states like Ohio and Michigan. Analysts say that Congress may be feeling less generous after the elections.

With bailouts for the auto and banking industries underway, now would be a good time to deliver the elegy for capitalism and free markets. We have now transitioned into a hybrid model -- privatized reward and socialized risk -- where companies can earn billions and pay out bonuses when times are good, and count on handouts when the going gets tough.
Get the latest on cars and trucks
from GM and all brands at AOL Autos.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 13, 2012: 08:46 AM

Hot Stocks

General Electric

18.875-0.255(-1.33)

Alcoa

10.29-0.35(-3.29)

Apple Inc

493.42+0.25(+0.05)

Google Inc 'A'

605.91-5.55(-0.91)

Bank of America

8.07-0.11(-1.34)

Wal-Mart Stores

61.90-0.06(-0.10)

Exxon Mobil Corp

83.80-1.08(-1.27)

Ford

12.44-0.25(-1.97)

Citigroup

32.925-0.735(-2.18)

IBM

192.42-0.71(-0.37)

Yahoo

16.14+0.14(+0.88)

Starbucks

48.82-0.38(-0.77)

Microsoft

30.495-0.275(-0.89)

Home Depot

45.33+0.06(+0.13)

Learn More About GM Cars

General Motors Brands:
Find Your Next Car

AOL Autos New Cars and Used Cars

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1329140778026 ms.