Detroit just got a lifeline.

President Bush has approved a $17.4 Billion bailout of the American automobile industry. The package will consist of $13.4 Billion in emergency loans to General Motors and Chrysler along with another $4 Billion on hand to be loaned if necessary. The loans are being granted under the condition that the companies undergo massive restructuring efforts in order to return to profitability and pay American taxpayers back.

The bailout package as it is currently designed will keep GM and Chrysler afloat until March 31st of 2009 at which point the Obama administration, along with Congress, will have a considerably larger Democratic majority in both Houses and will reevaluate the restructuring efforts of the automakers and decide if anymore help is needed, or warranted. While nobody likes giving away loans to the auto industry - a process about as distasteful as a young adult child asking their parents for money, times 1 Billion - these funds were desperately needed to keep millions of Americans from losing their jobs, the consequences of which would be disastrous. I don’t give the Bush Administration credit very often, but on this, probably (hopefully) their last major act in office, they did the right thing for the country.

You can takepart by checking out the energy efficient cars of the future on greencar.com.

LINKS:

NY Times: Bush approves $17.4 Billion auto bailout

WSJ: Auto Bailout: Cash in hand, Detroit talks of going green

CNNMoney: Bush announces auto rescue