White House Authorizes 13.4 Billion to US Automakers

Finally.

President Bush has just announced that the embattled US automakers will receive 13.4 billion in loans from the Government. That sure is a peculiar number.

President Bush made the announcement this morning at 9 am. Bush also stated that 4 billion more may be used in February 2009.

"The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing," according to a statement released by the White House.

The White House calculated this amount should stabilize the automakers through the end of March 2009.

"If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury," the statement says.

The funds will come from the TARP bailout, as expected and there are other conditions to these funds. These include limits on executive compensation and perks such as corporate jets, the automakers adhering to fuel efficiency and emission standards and opening books to government scrutiny.

Finally.

Now can we resume our wonderful Holiday Season, already in progress?

President Bush says auto bailout not quite ready

President Bush was en route to visit Afghan President Hamid Karzai and address U.S. troops in Afghanistan when he was asked about the US auto bailout. "We're not quite ready to announce that yet," Bush told reporters on Air Force One. Bush was then asked if the bailout would come from the 700 billion dollar TARP fund and he said, "I signaled that that's a possibility." He also stated that a decision would not take long although spokesperson Dana Perino said there was no timetable for assistance to the Big three.

More quotes from Yahoo News:

"An abrupt bankruptcy for autos could be devastating for the economy," Bush told reporters aboard Air Force One during an unannounced trip to Iraq and Afghanistan. "We're now in the process of working with the stakeholders on a way forward. We're not quite ready to announce that yet."

Bush wouldn't give a precise timetable but said, "This will not be a long process because of the economic fragility of the autos."

Looks like everyone will have to bite their nails for yet another day.