Dec 1, 2008
No, It's a Bailout
UAW president Ron Gettelfinger argues that the $25 billion handout he is urging Congress to give to the Detroit-based auto manufacturers is in fact not a bailout: it's a"loan--a bridge loan."
He goes on to argue that the companies and the unions are working on financial plans that will ensure the long-term stability of the companies.
But if those both those claims were true, shouldn't they be able to convince a private bank or private investors to give them the"bridge loan"? If it were such a certainty that they would pay back the"borrowed" money plus interest, surely profit-minded investors would be interested to help them out. But curiously, they aren't.
Let's see: (1) If A, then B. (2) Not B. Therefore . . . .
He goes on to argue that the companies and the unions are working on financial plans that will ensure the long-term stability of the companies.
But if those both those claims were true, shouldn't they be able to convince a private bank or private investors to give them the"bridge loan"? If it were such a certainty that they would pay back the"borrowed" money plus interest, surely profit-minded investors would be interested to help them out. But curiously, they aren't.
Let's see: (1) If A, then B. (2) Not B. Therefore . . . .