George W Bush has turned to such a nice guy in his last days! After brilliant act of shoe attack, he is on the news again this time for his greenlight to $17.4billion bailout for General Motors and Chrysler. $13.4billion of the loan is available in the short-term and a further $4billion will follow later next year.

The money will be taken from the $700billion ring-fenced for the Wall Street bail-out, with $13.4billion available in the short-term and a further $4billion to follow later next year.

The loan to General Motors and Chrysler (Ford is in a less desperate situation) is contingent upon their submitting a viable ongoing business plan by the end of March 2009.

The US Senate had earlier rejected appeals from the car companies for direct aid, but Bush said that ‘these are not ordinary circumstances. In the midst of a financial crisis and a recession, allowing the US auto industry to collapse is not a responsible action.’

GM and Chrysler will be expected to come to an agreement with workers’ unions over pay and benefit deals, offering packages on a par with the less generous deals given by the foreign car-makers manufacturing in North America, and to reduce their debt.

They will also be required to make concessions such as getting rid of private corporate jets and cutting executive pay and bonuses.

If the companies’ submitted survival plans do not meet with approval next March, the Senate has the power to recall the loans and, if these are not repaid, thus instigate bankruptcy procedures. The ultimate decision on this, however, will be down to President-elect Barack Obama.

source : Channel 4

Now if they get the money and then go bust again, Bush will be like :

🙂