Detroit News: Democrats authorize funds for Detroit
According to the Detroit News, Democratic leaders have approved $25 billion in low cost loans to the auto industry, including $7.5 billion approved in a 2007 energy bill for advanced technologies. The law only funds vehicles that will be at least 25% more efficient than existing vehicles.
To put that number into perspective, the Treasury Department is currently asking for $700 billion to bail out financial firms. Much of the latter is unlikely ever to be returned to the government, while the $25 billion in loans, aside from $10 million in administrative costs, is likely to be recouped.
Recent bailouts of financial firms have cost over $100 billion. General Motors alone has around 284,000 employees, and numerous American suppliers are at risk as the three major American automakers shrink.
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