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View Diary: A Bankruptcy Lawyer (Me), Corrects Factcheck.Org On the Auto-Bailout (Updated, re Private Funding.) (157 comments)

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  •  could TARP (2+ / 0-)
    Recommended by:
    johnny wurster, davidincleveland

    even have approved of loans of that size at that time? (I'm not sure.)

    The GOP: "You can always go to the Emergency Room."

    by Upper West on Thu Oct 25, 2012 at 12:28:51 PM PDT

    [ Parent ]

    •  Let's stipulate ex arguendo that the (3+ / 0-)

      congress passed and the prez signed a TARP-for-automakers law under which the loans could've been guaranteed.  

      Would Mittens's program have worked?  It may have.  Although, as someone else notes in this diary, that would've been, effectively, a transfer of free money from the government to the banks in the amount of the risk-free return on the guaranteed loans.  Mittens's proposal, strictly from the government's standpoint, would make no sense at all.  Obama cut out the middleman and incurred no additional risk in the process.  

      Anyways, thanks for letting me think out loud a bit.

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