Detroit can't sell cars. Perhaps it is because they are too expensive. Perhaps buyers can't get credit. Or, maybe autos made in Japan and Germany are simply better-built.
No matter. The Big Three are now looking at a program to stimulate car sales sponsored by the US government.
According to The Wall Street Journal, "On Monday, Sen. Charles Schumer (D., N.Y.) plans to send a letter urging the Federal Reserve to make financing available for the auto companies' lending arms, which would allow them to offer more auto loans."
Will that help? If the loans are attractive enough, certainly. They may have to be better than zero percent financing. The car companies have tried that. Perhaps the government can make the first year of payments for car buyers and leave the consumers to pay the last two years. That would be as good as 33% off the purchase price.
Why stop there? Home builders want a bailout. The government could make a 20% down payment for people who would like to buy a new house. That would leave a mortgage on 80% of the home. The government could make the balance of the mortgage interest free.
Every industry in America is going to make a grab at bailout funds. The Treasury will have to hire thousands of analysts just to sift through them
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
11-24-2008 @ 11:23AM
BOB WALSH said...
JAILS ARE FULL, WE GIVE MONEY TO EVERY TOM, DICK AND HARRY. WE ENCOURAGE STAY AT HOME WELFARE. WHEN WILL THE GOVERNMENT LEARN "TOUGH LOVE", BECOME A PARENT MODEL AND SIMPLY SAY "NO". WHAT PART OF NO IS NOT BEING UNDERSTOOD. PLENTY OF WORK IN HOUSTON SO MOVE ON DOWN. DRAFT THE UNEMPLOYED, FORCE THEM WITH 2 COLLEGE YEARS. LNG FOR ALL VEHICLES FROM OK, TX, LA. THEN WE DON'T HAVE TO KISS THE MIDDLE EAST BUTT'S. END OF GAME. OH YEAH, HOW BOUT A 6 YEAR GOVERNMENT VACATION. THINGS WILL FIX THEMSELVES. THESE ARE THE FACTS. MORE IF YOU WANT MORE OF MY OPINION. THANKS. HAPPY TURKEY.
11-24-2008 @ 1:54PM
Neel said...
Bob, you should try living in the UK, you would be pissed off. We have the mother of handout programs, we suffer from benefit tourism, the working population get raped in taxes to pay for all of this. Now our govt is planning on more handouts paid for by screwing the working man even more. Bob, count your blessings.