Taxpayers at risk if firms get fed loans - then fail

摘要

WASHINGTON - Automakers and suppliers that tap USD25 pillion in federal loans will repay taxpayers with interest and create jobs, advocates insist. But neither of those outcomes is guaranteed, independent experts respond. The government "will have no means of recovery" if a company gets a loan and then fails, economist Daniel Luria says. Luria does not object to industry aid. He co-wrote a 2004 study that concluded U.S. companies need financial help from government to build advanced, fuel-efficient vehicles, especially hybrids. The UAW used the study to build support for federal aid.