Wed Nov 19, 10:11 AM Pacific • posted by Jed Lewison

Bailouts vs. Bridge loans

I noticed that in the hearings today, the auto executives were more disciplined about talking about the auto industry assistance plan as a "bridge financing" as opposed to a "bailout."

Now let's be clear -- this bridge financing would be offered at very low interest rates, and therefore would be a subsidy -- but certainly not the same as an outright grant of cash.

To me, it seems like a far more reasonable thing to do than I originally had thought the "bailout" was going to be.