US Treasury denies GM/Chrysler request for aid

Well, the rumor mill continues to swirl as the impending merger between GM and Chrysler brings us news yet again. This time, it is due to the report by the Detroit Free Press that GM had asked the Bush Administration for 10 billion in aid as a loan, much of which was expected to assist in the financing of the merger.

However, the US Treasury has denied the request, citing several factors, including the 3 trillion in Federal bailout and credit liquidity programs aimed at stemming the recent financial crisis gripping the U.S. economy. (That's kind of a biggie, I guess).

Politically, it wouldn't be prudent to have this go through--being that there has been stipulated reports of the job losses that would rock the nation if the merger goes through--experts have fluctuated their number, but it could be anywhere upwards of 100,000 jobs lost with the trickle-down effect. The Bush Administration and republicans certainly wouldn't want to have that kind of blood on their already-soaked hands.

Will aid eventually happen? It could, but don't expect anything until probably the end of the month, in my opinion. Once the fallout and dust settles from the election, then I can see the government going to work on this and trying to provide some sense of balance with the proposal.

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