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Graded 45/50ECO 561July 21, 2017GOVERNMENT INTERVENTION AND THEAUTO MAKERS BAILOUT
Automakers Bailout and Government Bailout HistoryGovernment Intervention vs. Market-Based SolutionsHow it affects Various StakeholdersUnintended ConsequencesCost Trend of the Intervention ProgramWas it a success or failure and should it be modified?ConclusionOVERVIEW
•Automakers Bailout•Top Three Auto Makers•Received Troubled Asset Relief Program(TARP)•Received 80.7 Billion•Lent money, bought stock and provided incentives to spurnew car purchases.AUTOMAKERS BAILOUT ANDGOVERNMENT BAILOUT HISTORYCompanyInvestedSold ForProfit/LossDate BailoutEndedGM51.0 billion$39.7 billion- $11.3 billionDec. 9, 2013GMAC (Ally)$17.2 billion$19.6 billion+$2.4 billionDec. 18, 2014Chrysler$12.5 billion$11.2 billion- $1.3 billionMay 2011TOTAL$80.7 billion$70.5 billion$-10.2 billion
•Government Bailout History•The Great Depression•Government Created the Home Owners'Loan Corporation•Savings and Loan Bailout of 1989•