Ottawa, Ontario tab for GM rescue package triples; key contributor to ballooning federal deficit
From Thursday's Globe and Mail, Thursday, May. 28, 2009 03:52AM EDT
Canada's contribution to the bailout of two Detroit auto makers could soar to more than $13-billion with the increasing need for cash by General Motors Corp., which has moved a giant step closer to filing for bankruptcy protection.
The cost to Ottawa and Ontario of the GM rescue package is now expected to be about $10-billion. The two governments are expected to receive an equity stake in a much-shrunken GM in return for the financing to keep GM operating during restructuring.
James Morton
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4 comments:
"I'm beginning to wonder if this bailout makes sense. The cost goes up and bankruptcy still happens."
So what do you think James? What does Ignatieff think?
I don't know what Michael Ignatieff thinks on this one -- I'm not sure there's a Party policy specifically on the bailouts. My fear is that billions is spent and the Big Three still close down plants and dealers and so nothing of value for the country is achieved. But I may not know all the facts -- what do others better informed think?
Agree with you on that James. It makes no sense to give them billions if they're going bankrupt anyway. But when bankrupt is when they do restructuring & streamlining. But there are already dealerships closing in this country, people being laid off & plant closings. So really, is it worth the billions to supposedly "bail" them out? I don't think so.
I think that globalism is going to take a big hit for at least 3 more years. Our economy is going to look to supply and demand mostly within our own borders until everyone is back on their feet. Pour money into wind technology, geothermal infrastructure, high speed rail, higher education and EI. Protect the household economy and they will keep the $$ flowing in Canada.
Unless GM is going to build the electric car, its like trying to revive a dinosaur.
But I'm not an economist like Harper, so these are just ideas...
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