Majority Democrats and the Bush White House have finalized a deal to spend $14 billion on emergency loans for struggling U.S. automakers, congressional officials said Wednesday. Strong opposition lingered among some Republicans.
Part of the agreement involves creating a "car czar" -- a government figure who would dole out the loans, with the power to force the carmakers into bankruptcy next spring if they didn't cut quick deals with labor unions, creditors and others to restructure their businesses and become viable.
Congressional Republicans, left out of negotiations on the package, are expressing grave reservations and may seek to block it. Sen. David Vitter, R-La., promised to filibuster the measure, which could delay a final vote for days.
He said the package has an "ass-backwards" approach to curing what ails the U.S. auto industry-- giving carmakers money immediately, and only later demanding that they restructure.
Fast Money viewers have some strong opinions on the issue too. Ray T. from Indiana writes, "We are loaning the auto companies $15 billion to keep them open for the next 4 months to make 3 million cars we don't want. That is $5000 for each car we don't want.
That is ABSURDITY in spades."
However, Felix C. feels quite differently. He tells us, " I worked for GM for 30yrs, both Ford and GM have made tremendous changes over the last 3yrs. After 2010, and going forward when everything they have worked for is in place, they are going to be money machines!
And that leads to our Fast Money Reader Poll. Do you agree with the government plan to provide the automakers with $14 billion in emergency loans?
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CNBC.com with wires