Monday, December 22, 2008

We're All Socialists Now

President Bush played Santa for Detroit to the tune of $13.4 billion for GM and Chrysler (with more available in February). Bankruptcy isn't a prerequisite.

But, as Megan McArdle observes, the bailout contains a poison pill, in this clause:
The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. In the event that firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury Department.
This is never gonna happen--if the Big 3 have been flailing for decades, how can a few billion and under four months save the sinking ships? Even the Supreme Court set viability "at about seven months," albeit in a different context (grin).

(via Insatpundit)

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