Loans for Automakers? Obama Favors While McCain Doesn't (Democrats, Republicans, billion)

[NewToCA]

The three major US automakers are planning on requesting up to $25 billion in guaranteed federal loans. They have poor credit ratings, so they want to get the money from the government instead, at a much lower interest rate. The rationale is they need this to retool their industry, and meet future gas mileage requirements.

They want to borrow the money at 4.5%.

Obama generally supports providing subsidized loans to the automakers while McCain has opposed this.

Do the posters think this is a good idea, or are you against this?


Obama pledges support to get aid for Detroit 3 | Freep.com | Detroit Free Press

Automakers seek Fed loans to ride downturn: report - Yahoo! News (broken link)

[georgia dem]

It depends on what are their business plans.
It needs to be spelled out fully.
Are they going to make the autos here or overseas?
What kind of fuel will they use?
Where will the gov. get the funds to loan them the money, taxes from us?

[Art123]

The bottom line is that government investment is needed to discover new technologies that will not be profitable at first, better very beneficial and profitable in the long-run. Just imagine that the U.S. had invented the technology that made hybrid cars instead of the Japanese government. That's right. The Japanese GOVERNMENT payed for the research necessary to develop hybrid technology. Imagine if Ford or Chevy had this technology, instead of buying it from Toyota and Honda. Imagine if the fuel standards that Democrats have been fighting for over 30 years for would be in place now. Just think of the technology we could have developed by now if the auto industry had not gotten their way by getting mainly Republicans and some Democrats on their side.

I support Obama overall, and do not know what he has really said about this, and anonymous OP is probably one of the last sources I would trust. The companies should not just get a blank check from the government. The money should be used smartly to develop new technologies that the auto companies can use. Innovation frequently needs a government investment to get the ball rolling. Private companies are often too short sighted and definitely do not have the good of society in their interests.

[jmarquise]

I think the chevy volt is going to save GM if they can hurry up with the production. I don't think we should bail out anyone.

[NewToCA]

Why subsidized loans for the auto industry, but not for other transportation or food industries that are also under profitability and modernization pressure?

Doesn't this undermine the bond market, and the bond rating system?