Taxpayer losses could be as high as $3.5 billion in Chrysler bailout; $34 billion total including GM
We've already lost at least $1.6 billion, with another $1.9 billion unlikely to ever be paid off as well. Add in the GM liability and it climbs to a whopping $34 billion.
The bailout was heavily promoted by Congress but failed to pass the Senate. President Bush stepped in to authorize loans in December, 2008 and January 2009 which President-elect Obama fully endorsed.
WASHINGTON - The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009.
Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.
Funny how when the taxpayer loses on these deals the government makes no effort to hold the surviving parts of the company liable for their losses. Though I am against this kind of bailouts on principle I have to say that if they are going to be done the government should secure equity stakes in the emerging company as part of the deal so that taxpayers are better protected.
Note that for the $60 billion or so in loans the government could have instead simply pre-ordered about 2.5 million government vehicles from these companies. Now we get to still pay for any government vehicles we buy from these companies. What a deal!
The bailout was heavily promoted by Congress but failed to pass the Senate. President Bush stepped in to authorize loans in December, 2008 and January 2009 which President-elect Obama fully endorsed.
WASHINGTON - The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009.
Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.
Funny how when the taxpayer loses on these deals the government makes no effort to hold the surviving parts of the company liable for their losses. Though I am against this kind of bailouts on principle I have to say that if they are going to be done the government should secure equity stakes in the emerging company as part of the deal so that taxpayers are better protected.
Note that for the $60 billion or so in loans the government could have instead simply pre-ordered about 2.5 million government vehicles from these companies. Now we get to still pay for any government vehicles we buy from these companies. What a deal!