v'ܩ Shocking News: Chrysler not Paying Back Government
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Shocking News: Chrysler not Paying Back Government

The Lid recently posted this:

CNN is reporting (and it has been confirmed by the administration) that as part of the bankruptcy filing the $7.2 Billion Dollars given to Chrysler by the American people will not be paid back. Don’t think of it as wasting $7.2 billion dollars, think of it as a nice little gift to the United Auto Workers. And don’t forget, we gave GM over $15 Billion. How soon before that goes away also?

I wrote about the Big Failed Three in December:

It’s sad really, that the taxpayers are going to be on the hook for another 15 billion in bailout money. Apparently that is the amount that Congress thinks will save GM and Chrysler.

The fact is that there is no way 15 billion will save these companies. It will only postpone the inevitable.

Well, how about that, Chrysler is going bankrupt and the American taxpayers are out over 7 billion dollars. Like I said, shocking news. So shocking that I wrote it 5 months ago.

More Great News

The WSJ reported this from Obama:

“I don’t stand with those who held out when everyone else is making sacrifices,” Mr. Obama nonetheless declared, blaming what he called “a small group of speculators” for the car maker’s Chapter 11 filing. To hear the President tell it, you’d never know that Chrysler had borrowed, and since frittered away, the $6.9 billion that it owes to those “speculators.” The Administration had only offered $2 billion to those secured creditors as part of its proposed restructuring for the car maker. So it’s hardly a surprise that many lenders would rather take their chances in bankruptcy court.

What do you mean you don’t stand with those who held out. You offered them 29 cents on the dollar and they thought they could get more in bankruptcy court. These aren’t speculators, these are funds that regular people have bought into with their 401k. The job of these funds is to recover as much money as they can for their investors. Their job is not to save Chrysler or the UAW.

Gateway Pundit wrote:

The Obama Administration threatened Chrysler creditors into acquiescing to plans to restructure Chrysler or face the wrath of the White House press corps.

This is really a joke. Obama apparently just does not believe in capitalism at all. I think the only thing he really believes in is politics. I’m pretty sure threatening investors and blackmailing CEO’s isn’t in the Constitution. I look forward to the upcoming GM bankruptcy where we will probably forgive most if not all of what we gave them as well.

Author: Derek Clark Categories: Finance, General Politics Tags:
  1. TJ
    May 6th, 2009 at 11:22 | #1

    I’m sad.. and outraged… but unsurprised.