White House defends auto bailout - Dodge Nitro Forum
Off-Topic Discussion If you have something to discuss that is not related to the Dodge Nitro, post it in here. Keep it work safe!

LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 05-19-2010, 07:47 AM Thread Starter
Super Moderator
rickaren's Avatar
Join Date: Nov 2006
Location: Indiana
Posts: 22,852
White House defends auto bailout

May 19, 2010 White House defends auto bailout | detnews.com | The Detroit News

White House defends auto bailout

Top aide: Taxpayers may lose one-fifth of $50B GM investment

Washington -- The White House's top economic adviser defended the $85 billion auto industry bailout Tuesday, saying the government may recoup most of its investment in General Motors Co.

At a daylong conference on the future of auto communities, Larry Summers, head of the National Economic Council, said the Obama administration expects to recover "most, if not all" of the $50 billion that went to GM.

At current pricing of GM bonds, taxpayers would lose about $10 billion of the investment.

Defending the bailout, Summers said the auto industry had shed 400,000 jobs in 2008, and the Bush administration had estimated the loss at another 1.1 million if GM and Chrysler were allowed to go under.

The job losses, he said, would have meant "state and local budgets pushed to insolvency. They meant rising crime. They meant people dying younger than they otherwise would have."

The administration acknowledged Monday that the government would assume at least $1.6 billion in losses on the $4 billion loan it made to Chrysler in January 2009.

The administration's latest public estimate predicts a $30 billion combined loss on the bailouts of GM, Chrysler and GMAC -- GM's former finance arm now known as Ally Financial Inc.

At the conference, United Auto Workers President Ron Gettelfinger said the bailout didn't just save GM and Chrysler but "saved the nation."

"We can't give up on our auto communities," said Gettelfinger, who steps down from his post next month.

Much of the conference, sponsored by the White House and the Brookings Institution, focused on Detroit's woes.

Detroit Mayor Dave Bing said "all is not lost."

Detroit has a population "that's blue-collar, that's tough, that won't give up, that won't quit, that are not going to run away," Bing said. "That's the nucleus of what we have to rebuild our city."

Sen. Debbie Stabenow, D-Lansing, said the "best way to revitalize auto communities is to create jobs in our communities."

In a report on its efforts to boost auto communities, the White House said it led trips to 11 communities in five states affected by the auto industry downturn in a bid to help cut red tape and win federal support.

Michigan members of Congress urged the administration to seek ways of helping U.S. manufacturers compete against what they consider unfair foreign trade and currency practices.


Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is online now  
Sponsored Links

  Dodge Nitro Forum > Off-Topic Area > Off-Topic Discussion

Quick Reply

Register Now

In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Thread Thread Starter Forum Replies Last Post
$30 billion loss on auto bailout? rickaren Chrysler/Dodge/Jeep News 0 12-09-2009 03:26 PM
New auto czar defends U.S. bailout rickaren Chrysler/Dodge/Jeep News 0 07-28-2009 04:18 PM
White House reassures Mich. delegation rickaren Chrysler/Dodge/Jeep News 0 04-23-2009 12:35 PM
White House hopeful on Chrysler-Fiat deal rickaren Chrysler/Dodge/Jeep News 0 04-21-2009 12:19 AM
Ontario agree on $3.3B auto bailout package rickaren Chrysler/Dodge/Jeep News 4 12-22-2008 08:18 AM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome