Tuesday, October 23, 2012

Timing the Next Auto Bailout


Click to enlarge.

What can I say? I like to plan early.

History of U.S. Gov’t Bailouts

In 1979 Chrysler suffered a loss of $1.1 billion. That year the corporation requested aid from the government. In 1980 the Chrysler Loan Guarantee Act was passed, which provided $1.5 billion in loans to rescue Chrysler from insolvency. In addition, the government's aid was to be matched by U.S. and foreign banks.

In late September 2008, Congress approved a more than $630 billion spending bill, which included a measure for $25 billion in loans to the auto industry. These low-interest loans are intended to aid the industry in its push to build more fuel-efficient, environmentally-friendly vehicles. The Detroit 3 -- General Motors, Ford and Chrysler -- will be the primary beneficiaries.

Simple extrapolation suggests that these things happen every 29 years.

This was a simple explanation which everyone could understand, and because Malone was not a simple person he perceived that he had better let it suffice. - H.P. Lovecraft

Source Data:
St. Louis Fed: Custom Chart

6 comments:

mab said...

This was a simple explanation which everyone could understand...

Awesome quote! Sadly, simple explanations are all we get in the U.S.A. these days. To make matters even worse, most of the simple "explanations" are outright lies.

You'd think the majority would be skeptical by now. Nope! Mission accomplished!

Rob Dawg said...

Almost looks like the -union- private employment long term channel.

Stagflationary Mark said...

mab,

In relating the circumstances which have led to my confinement within this refuge for the demented, I am aware that my present position will create a natural doubt of the authenticity of my narrative. - H.P. Lovecraft

I take refuge within this blog, lol. Sigh.

Stagflationary Mark said...

Rob Dawg,

Look for the Union Label 1981 classic ad

mab said...

I take refuge within this blog

I'm not sure there is a refuge. Perhaps an illusion of refuge is the best we can hope for.

Stagflationary Mark said...

mab,

Refugee

Ain't no real big secret, all the same