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August 23rd, 2008

UPDATE: Make that $50 Billion

HAHA. The free market! The American Soviet Ministry of Automobiles is “free” to double its request for public handouts from $25 billion to $50 billion.

Via: Reuters:

The Big 3 Detroit-based automakers are seeking about $25 billion in federal loans as they struggle to ride out a steep downturn in U.S. auto sales, The Wall Street Journal reported on Friday.

Lobbyists for the U.S. automakers — General Motors Corp, Ford Motor Co and Chrysler LLC — briefed White House officials, as well as U.S. Rep. John Dingell and other Michigan Democrats, on a possible bailout and plan to unveil the proposal after Labor Day, according to the report.

The plan is for the government to lend some $25 billion to the automakers in the first year at an interest rate of 4.5 percent, or about one-third what the companies are currently paying to borrow, the report said.

Under the proposal, the government would have the option of deferring any payment at all for up to five years, the article said.

Representatives at GM, Ford and Chrysler were not immediately available for comment.

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