Tag Archives: car companies

$25 Billion in Car Company Loans

Lost in all the press over the $700 billion bailout and the ongoing financial crisis, we all managed to lose track of the little matter of $25 billion in low-cost loans that the government is making to the big three auto companies. These loans are ostensibly to help retool old factories so that they can manufacture new fuel efficient cars.

This is, to put it mildly, offensive. In fact, I have a big long post that I am working on, one that ties Detroit to Washington DC, and that discusses the metaphysical phenomenon of current actions sowing the seeds of one’s eventual destruction. But that post isn’t finished, so in the meantime, I would just like to point out that the need for fuel efficient cars didn’t come on suddenly, like the financial crisis. And while prescient commentators over the last few years were pointing at a financial meltdown, the growing market for fuel efficient cars has been obvious to everyone for decades. After all, that’s how Toyota became bigger than Ford: by selling small cars.

Detroit reminds me of this guy: