Wednesday, May 6, 2009

My Fellow Americans, Thank You For Your $8 Billion Gift To Chrysler

Henry Blodget | May. 6, 2009, 9:40 AM

The White House confirmed yesterday that the $8 billion in "bridge loans" the U.S. taxpayer has given to Chrysler over the past six months, including $4 billion in bankruptcy financing, won't be paid back. Taxpayers also won't be getting a big slug of Chrysler stock in exchange.

Instead, the wreckage of Chrysler will be divided up among Fiat, Chrysler's unions, and Chrysler's debtholders. Which means that the taxpayers' $8 billion was just a gift to these three consitituencies.

We don't know about you, but we can think of a few dozen charities that we'd rather have given that $8 billion to than Chrysler's debtholders, Chrysler's unions, and Fiat.

Is the White House going to explain this one, or are we just supposed to ignore it?

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