Free Bread & Circuses!
“The House of Representatives on Wednesday approved a $25billion package of low-cost loans to help hard-pressed car-makers and their suppliers finance plant modernisation at a time of restricted access to public capital markets.
The automotive loans are separate from the proposed $ 700 Billion bail-out for the banking sector, which is still being debated in Congress. The House approved the measure 370-58, setting the stage for Senate approval within days.
Executives of General Motors, Ford Motor and Chrysler and their suppliers have lobbied heavily for the loans. Both presidential candidates, John McCain and Barack Obama, have expressed support.
Shelly Lombard, analyst at Gimme Credit, a corporate bond research company, told clients this week that ‘blue collar workers are more sympathetic victims than ‘rich’ investment bankers. So it’s easier to defend loans designed to save close to 100,000 jobs in the shrinking US manufacturing industry.”