GM, Chrysler request $10 billion another economy victim

Posted: 10/28/2008 by Floyd in Labels:
4

Another victim of the economy seems to be GM who is going to merge with Chrysler, all I can say is what a mess;


NEW YORK/DETROIT (Reuters) - General Motors Corp and Cerberus Capital Management have asked the U.S. government for roughly $10 billion in an unprecedented rescue package to support a merger between GM and Chrysler LLC, two sources with direct knowledge of the talks said on Monday.
The government funding would include roughly $3 billion in exchange for preferred stock in the merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly.
The U.S. Treasury Department is considering a request for direct aid to facilitate the merger and a decision could come this week, sources familiar with the still-developing government response said earlier on Monday.


Read the story at Reuters

4 comments:

  1. Aoi says:

    So the bailout now includes car companies? Don't we bail these companies out every few years anyway? What happened to the alleged free market and non-interference? Or better, what happened to common sense?
    And where's my $10 billion for my upcoming merger?

  1. Floyd says:

    I feel Aoi that a lot of this is spiral from here, of course, this is only my opinion but it don't look good the government can not take hold of all these businesses and banks and anyone else who needs bailed out, from what I've been reading lately this economy is in free fall right now.

    It is going to take a lot of work from the next administration to correct the errors of this one, the deregulation will have to be dealt with. It is going to be a hard job to say the least, it is a job I would not want.

  1. Gran says:

    I heard this story on NPR today, and I'm disgusted. How about helping the taxpayers?

  1. Floyd says:

    Hopefully help is on the way, hang in there friend.