Harley-Davidson received $2.3B during bailout
Monday, December 6th, 2010Documents released by the Federal Reserve last week show that Harley-Davidson received $2.3 billion in loans during the federal bank bailout program. The program was meant to keep large banks such as Citigroup and Wells Fargo from collapsing during the financial crisis, but were also handed out to smaller companies such as Harley-Davidson, Caterpillar ($733 million) and McDonalds ($203 million).
How effective was the bailout? According to Donald L. Kohn, who was the Fed’s vice chairman during the crisis, the bailout “…prevented an even more disastrous outcome”. He further stated that, without the bailout, “liquidity would have dried up even more than it did, asset prices would have fallen even more than they did, and economic activity and employment would have fallen further and faster then they did.” (more…)
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