The Big 3 Automakers again made their trek to Washington D.C., this time in automobiles, to make their pitch a second time to Congress. They are there to justify their need to acquire bridge loans from the federal government to regain their competitiveness in the world auto markets.
The first time they were in Washington they asked for $25 billion, this time they are going after $34 billion. GM says they will need $18 billion, but will only use the last $6 billion in case of emergency or if market conditions deteriorate further. I guess they don't consider this an emergency. Ford doesn't think they will need they $9 billion they are asking for, but want it there for a "backstop". Chrysler is asking for $7 billion.
The loans are said to help not only the automakers, but the entire economy. Without it, many analysts say the economy will suffer a major setback. This is the sales tact that the automakers are using to convince Congress they should give them billions of dollars. After all, they couldn't make their companies competitive before, losing billions in recent years, but this time will be different.
Will the bailout work or will it just put the economy in worse shape by forcing taxpayers to pick up a tab that may not get paid back? With all the money printing going on, at some point the fed will have to deal with inflation.
Congress may be fooled by the reports the Big 3 submitted, but the general public don't buy it. If fact, 61% of those polled believe that the automakers should not get the funding. Another 53% say that they don't think the funding will help the economy.
Only 15% say they will be directly affected if the automakers were to go bankrupt. As expected most of the opposition to the bailout comes from people in West, Northeast and South. But still 53% of people in the Midwest oppose the bailout.
Democrats are more supportive of the bailout, but still 53% oppose it, 70% of Republicans and 61% of Independents oppose the bailout. Seventy percent of Americans feel it is unfair to the taxpayer to bailout the automakers.
The poll was conducted by CNN/Opinion Research Corporation by phone with 1,096 adult Americans. The survey's sampling error is plus or minus 3 percentage points.