What is the government proposal to help GM and Chrysler?

The US Bail Out Plan of Auto Industry : GM and Chrysler

Introduction

In addressing the current financial recession that stemmed from the sub prime mortgage crisis in the US sometime in 2007 , the congress enacted the Troubled Asset Relief Program (TARP ) program (Emergency Economic Stabilization Act of 2008 ) to allow the federal government through its Treasury Department to purchase troubled assets (i .e . securities , debts that are feared of not being paid ) and equity from financial institutions and other collapsing industry in to enhance their liquidity and reinforce their finances (Joint

Committee on Taxation 2008 ) The major beneficiaries of the program are financial institutions like Citigroup , Bank of America , AIG , and JP Morgan Chase , among others that are most hit by the mortgage crisis as well as the auto industry especially General Motors (GM , Ford and Chrysler , which were subsequently affected by the financial crisis that pushed them in the brink of a looming bankruptcy . Earlier on , a debate ensued whether the bail out plans for the auto industry will come from TARP funds as supported by Democrats or the Energy Department loan as argued by Republicans . The latter is supposed to be allotted for retooling auto manufacturers for their fuel-efficiency programs . Because of the of situation and perceived disastrous economic consequences of disly bankruptcy in the industry (the industry significantly contributes to the nation 's gross domestic product and provides employment to many citizens , a bailout plan for the auto industry with TARP funds finally pushed through...