Washington Approves $25 Billion Dollar Bailout For Detroit 3

In the wake of the crushed $700 billion dollar emergency financial measure that sparked a historic plunge of the Dow Jones and caused many to wonder about the future of America’s economy, President Bush passed into law Tuesday a revised version of the legislative rescue, this time to the tune of $634 billion. Of that hefty sum, $25 billion has been guaranteed for use in keeping the Detroit 3 afloat in the form of low-cost government loans. Under the bill’s directive, 10% of that $25 billion will be specifically set aside for auto companies whose operating facilities are at least 20 years old as well as for those whose in-house family totals 500 employees or less.

As per the bill’s terms of agreement, the low-cost loans will carry an interest rate of about 5% and a 25-year payback timetable, as well as the option to request a five-year repayment deferment. Heralded by auto industry lobbyists as a much needed measure, the billion dollar bail out could stand to save Detroit’s Big Three more than $100 million per $1 billion borrowed.

What this means to you: Not a damn thing. Please proceed as you were, hording your life savings in your mattress, awaiting the impending financial apocalypse.

[News Source: Detroit News]



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