Freddie Mac & Fannie Mae: Just The Beginningby Doug Mataconis
Now that the Treasury Department has rescued Freddie Mac and Fannie Mae to the tune of $ 200 billion, it’s not surprising that other industries might be lining up for their chance at the federal trough.
First in line; the Big Three automakers:
WASHINGTON (AP) – Auto industry allies hope to secure up to $50 billion in federal t loans this month to modernize plants and help struggling car makers build more fuel-efficient vehicles.
Congress returns this coming week from its summer break, and the auto industry plans an aggressive lobbying campaign for the low-interest loans.
The situation is growing dire after months of tumbling sales, high gasoline prices and consumers’ abandoning profitable trucks and sport utility vehicles.
Lawmakers authorized $25 billion in loans in last year’s energy bill, and automakers now want lawmakers to expand the pool of money available to $50 billion over three years.
Isn’t this what private credit markets are supposed to be for ?
H/T: Coyote Blog