US Treasury Secretary Hank Paulson promises quick relief for US automaker. But no details on a time line nor the amount the Treasury is ready to provide GM and Chrysler has yet been given.
The bailout is coming! The bailout is coming! But it never seems to arrive.
US Treasury Secretary Henry Paulson now promises a quick bailout to help the most desperate of the Detroit automakers, GM and Chrysler.
But no time line has yet been given nor an amount. Details remain sketchy.
"The automakers will get the money as quickly as we can prudently do it," Paulson was quoted as saying in a CNBC interview on Tuesday.
In an earlier interview, US President Bush acknowledged that the United States is in a "huge recession" and that he didn't want to see an automaker collapse make it worse. Still, he expressed his doubts about a bailout. "On the other hand, I'm mindful of not putting good money after bad. So we're working through options," he told CNN, according to the Reuters story.
GM says it will need 4 billion US dollars just this month to survive the year and another 4 billion in January just to skate along until more money is made available by the US government under an Obama administration. Chrysler is also on the verge of running out of operating capital.
In a recent study, investment firm Moody's Investors Service Inc. put the chances of a US automaker collapse at around 70 percent. The study also concluded the final price tag to keep the automakers going through this recession could be between 75 and 125 billion US dollars.