President George Bush is considering helping auto industry by providing money that was primarily earmarked for rescuing banking sector. Congress has passed a bail-out package of $700bn for financial institutions. The bail-out package for auto industry was passed by the House of Representatives but it was rejected by the Senate after talks between union leaders and manufacturers failed.
Stock markets worldwide plunged after news of the rejection of bail-out package by the Senate. It is feared that if the auto industry is not supported, it would lead to a large number of job cuts. The White House maintains that a disorderly bankruptcy of the auto industry will be a severe blow which the US economy will not be able to withstand.
Even though the auto industry needs immediate help, but it must be ensured that public money is not used indiscriminately to feed greedy businesses. Much has been talked about the corruption and greed of Wall Street bankers, it is therefore necessary that public money be used with due care.
President George Bush is considering helping auto industry by providing money that was primarily earmarked for rescuing banking sector. Congress has passed a bail-out package of $700bn for financial institutions. The bail-out package for auto industry was passed by the House of Representatives but it was rejected by the Senate after talks between union leaders and manufacturers failed.
Stock markets worldwide plunged after news of the rejection of bail-out package by the Senate. It is feared that if the auto industry is not supported, it would lead to a large number of job cuts. The White House maintains that a disorderly bankruptcy of the auto industry will be a severe blow which the US economy will not be able to withstand.
Even though the auto industry needs immediate help, but it must be ensured that public money is not used indiscriminately to feed greedy businesses. Much has been talked about the corruption and greed of Wall Street bankers, it is therefore necessary that public money be used with due care.
Related
