Spin Meisters

Last weekend GM got a $50 billion US Treasury loan for the development of electric cars and next-gen fuel efficient vehicles.  No one really buys that as we know it is to fend off bankruptcy by GM.  GM credit default swaps (fancy financial instruments that gauge a company’s solvency) were showing a 95% chance of bankruptcy.

 

Automakers Seek $50B In Loans From U.S.

 

(AP) Automakers plan to urge Congress to support funding up to $50 billion in low-interest loans over three years to help them modernize their assembly plants and develop next-generation fuel-efficient vehicles.

 
Industry officials said the loans, which are twice the amount authorized in last year’s energy bill, are a top priority when Congress returns next month because of the declining fortunes of Detroit’s automakers and tightening credit markets.  

 

 “The amount of concern and urgency from the Detroit companies has increased in the last month and significantly ratcheted up what they’re communicating what their funding needs are,” said Alan Reuther, legislative director for the United Auto Workers union. More…