The loans were originally authorised in an energy bill passed last December to finance the retooling of plants for more fuel-efficient vehicles, especially hybrid and electric cars. But they have become a crucial prop for Detroit carmakers.
The continuing resolution provides funding for $7.5bn, which is the estimated subsidy on the loans – in other words, the cost to the government of providing them at well below market rates.FinancialTimes
Friday, September 26, 2008
The U.S. taxpayer is going to provide $25 billion in low-cost loans to the U.S. auto industry. Yes, loans are paid back, but the actual cost is still $7.5 billion. And people still ask, "who will pay for free public transit?".
at 10:46 AM