Remember when we were told the bailout of the auto companies was just like a loan and we might even make money on it. Well, the President’s National Economic Council has announced that it will cost $14 billion. That is $14 billion out of the original $80 billion bailout.
Of the companies, Chrysler appears to be paying back most of the loans. GM, on the other hand, has announced that it has repaid a little more than half of the $50 billion it received in federal aid.
It appears that the bailouts will be a focus of the President’s reelection campaign. I am not sure how well this will go over. Not only did the bailouts cost $13 billion but they are often associated with the bailouts of the banks and investors (which are extremely unpopular). When combined with the emphasis on immigration, this appears an extremely high-risk strategy of the White House in the selection of issues. What do you think?