Microsoft billionaire founder Bill Gates wondered on Wednesday why the US government was considering a bailout for the Big Three US automakers when no private investor was willing to foot the bill.
“After all, they have to say ‘if no one else is willing to invest, why is that?’ Gates told CNN on the eve of congressional hearings on restructuring plans and requests by Chrysler, Ford and GM for a combined US$34 billion in government bridge loans to avert a collapse of the sector.
“What is it that investors are seeing about this business model or cost structure that makes them unwilling, and why, in that case, is the government alone stepping forward in this way?” Gates said.
“When you don’t have any private investors you really have to say, is taxpayer money going to have the desired effect?” Gates suggested the government look closely at the Detroit automakers’ restructuring plans.
“There are very few industries that aren’t going to suffer this [economic] downturn ... How does government take its finite resources and decide how much restructuring or change is expected there?” Gates asked. “And ideally you look at the sign of private investment as part of how you say, ‘OK, that really is a good investment class.’”
Reinforcing Gates’ view of the US auto industry, ratings agency Moody’s announced on Wednesday it had lowered its debt rating on Chrysler and GM to “CA” from “CAA2,” saying “the rating outlook is negative” for both companies.
The agency maintained its rating for Ford.
On US president-elect Barack Obama’s economic challenge when he takes office in January, Gates said he would recommend a far-reaching stimulus program as a first step.
“Clearly we need a stimulus that doesn’t undermine the incentive for businesses to be careful about their spending and making those correct investments,” Gates said.
People can preregister to receive their NT$10,000 (US$325) cash distributed from the central government on Nov. 5 after President William Lai (賴清德) yesterday signed the Special Budget for Strengthening Economic, Social and National Security Resilience, the Executive Yuan told a news conference last night. The special budget, passed by the Legislative Yuan on Friday last week with a cash handout budget of NT$236 billion, was officially submitted to the Executive Yuan and the Presidential Office yesterday afternoon. People can register through the official Web site at https://10000.gov.tw to have the funds deposited into their bank accounts, withdraw the funds at automated teller
PEACE AND STABILITY: Maintaining the cross-strait ‘status quo’ has long been the government’s position, the Ministry of Foreign Affairs said Taiwan is committed to maintaining the cross-strait “status quo” and seeks no escalation of tensions, the Ministry of Foreign Affairs (MOFA) said yesterday, rebutting a Time magazine opinion piece that described President William Lai (賴清德) as a “reckless leader.” The article, titled “The US Must Beware of Taiwan’s Reckless Leader,” was written by Lyle Goldstein, director of the Asia Program at the Washington-based Defense Priorities think tank. Goldstein wrote that Taiwan is “the world’s most dangerous flashpoint” amid ongoing conflicts in the Middle East and Russia’s invasion of Ukraine. He said that the situation in the Taiwan Strait has become less stable
CONCESSION: A Shin Kong official said that the firm was ‘willing to contribute’ to the nation, as the move would enable Nvidia Crop to build its headquarters in Taiwan Shin Kong Life Insurance Co (新光人壽) yesterday said it would relinquish land-use rights, or known as surface rights, for two plots in Taipei’s Beitou District (北投), paving the way for Nvidia Corp to expand its office footprint in Taiwan. The insurer said it made the decision “in the interest of the nation’s greater good” and would not seek compensation from taxpayers for potential future losses, calling the move a gesture to resolve a months-long impasse among the insurer, the Taipei City Government and the US chip giant. “The decision was made on the condition that the Taipei City Government reimburses the related
FRESH LOOK: A committee would gather expert and public input on the themes and visual motifs that would appear on the notes, the central bank governor said The central bank has launched a comprehensive redesign of New Taiwan dollar banknotes to enhance anti-counterfeiting measures, improve accessibility and align the bills with global sustainability standards, Governor Yang Chin-long (楊金龍) told a meeting of the legislature’s Finance Committee yesterday. The overhaul would affect all five denominations — NT$100, NT$200, NT$500, NT$1,000 and NT$2,000 notes — but not coins, Yang said. It would be the first major update to the banknotes in 24 years, as the current series, introduced in 2001, has remained in circulation amid rapid advances in printing technology and security standards. “Updating the notes is essential to safeguard the integrity
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