Bailout may be imminent, experts say

Amidst all of the flag-waving and the speeches, a swarm of lobbyists representing the automotive industry have invaded each of the national party conventions, touting their answer to the issue of falling car sales and uncertain future--a governmental bailout to the tune of 50 billion dollars. And though it may sound a little far-fetched, it is more than likely going to happen, according to experts.

While Congress has already approved a 25 billion dollar package, it didn't really pinpoint the finding method for this possibility, and the worst part of it for the Big Three is that the loan package--because of the financial instability of the companies right now--would therefore translate into interest paybacks that are more than 10% of the amount. While this would offer a cash infusion to get the companies started on the right foot, the long term effects--if it doesn't reap immediate dividends--would be equally as devastating to the bottom line.

What the auto industry would like is double the money and less of an interest rate, that would not only then give them more of a shelter immediately and less of a burden in the long run which, as they say, will allow for more technological advances, and better "fuel efficient" research.

Experts from the Center of Automotive Research say that the plan the auto industry wants is probably about "75%" probable, stemming from the idea that if they don't give this to them, the effects would be devastating to the American economy, and with both presidential candidates Barack Obama and John McCain supporting some type of bailout, the government turning its back on this proposal could be a very bad thing in the public's eyes. The precedent set in the 1970s with the Chrysler bailout leaves the idea that whatever, whenever will be done. Stay tuned.

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Bailout may be imminent, experts say

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