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The car companies don't want a "bailout" - they want access to credit.
This is the part of the credit crisis that everyone is ignoring. Big corporations are the biggest players in the short term lending market. Who do you think borrows the money that generates returns for money market mutual funds? Commercial paper, corporate bonds, money market funds - giant corporations need access to these credit streams to meet their cash flow needs.
If you want to find out how much big companies use these financing channels.. go to an annual report and find the "statement of changes in financial position" section and look under "financing activities".
Managing cashflow is a major operation an a company with 150 billion + in revenue. The credit crisis has destroyed these financing sources. Hundreds of billions of dollars have come out of money market investment funds, corporate bond ratings have been destroyed, banks have stopped being market makers for commercial paper, bonds, etc..
Auto companies cannot reorganize under chapter 11. They do not provide a service like an airline - if any one of the big 3 goes bankrupt they are gone FOREVER. no one will buy a car from a bankrupt company, it won't happen.
Giving the auto companies access to credit to save their operation has a direct effect on jobs.. not like Citigroup which just took 20 billion dollars AS THEY LAYOFF 50,000 people. Providing 25 billion in credit to the auto companies will save millions of jobs.
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I died.
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