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With $13.4 billion of government money already in their pockets from last year, General Motors Corp. (NYSE: GM) and Chrysler are about to get another $7 billion. And this is before they even present their plan for viability. They're not really viable businesses, otherwise they wouldn't need our money. But GM and Chrysler, which face a deadline to present their plan today, are going to get the next $7 billion regardless of whether they meet the deadline.

Why? The choice is simple: Either let GM and Chrysler file for bankruptcy, which would likely add hundreds of thousands to the unemployment ranks, or give them 0.07% of the $10 trillion that we've thrown at the banking system with no Congressional approval since last September. Meanwhile, with the formation of the President's Task Force on Autos (PTFA), there is no way that it could have reached a decision today on the $7 billion loan even if GM and Chrysler met their deadline.

Continue reading Autos to get $7 billion no sweat; but what of next $18 billion?

Autos to get $7 billion no sweat; but what of next $18 billion? originally appeared on BloggingStocks on Tue, 17 Feb 2009 08:45:00 EST. Please see our terms for use of feeds.

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