xpatUSA

GM: Buyout Better than Bailout

Why does the govt have to hand Detroit money directly? They've $350b left to hand out to "good banks" per Paulson's words. Just give a "good bank" or two the requested $25b on the basis that they do the lending. Buggers are said to be hoarding cash anyway.

Or can it be that the Fed is being asked to hand out money to 3 companies with zero credit rating? And was this not the cause of the housing bubble? Are we now going to see a "major company" bubble?

Puzzled.