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They paid off the gov. 12% intreats loans buy taking out 6-9% bank loans and internal investment money from fiat. Not a bad move, but far from being in the black!
 

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Can you imagine?

So does the idea for loaning the money in the first place go back to being a republican idea again?
The real good news is that the interest made just about covers the loss to the first loan which went away through the BK. So technically the US tax payer lost $200K instead of 2 million. The Us still has a 6% stake in the company so at some point Fiat will buy that back and likely will net the US tax payer profit from the bailouts.

All of the new Chrysler’s government loans have been repaid, along with $1.8 billion in interest and other costs, which may help to defray the $2 billion loaned to the old pre-bankruptcy Chrysler by the Bush administration.
 

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So I'm confused - is it still a bad idea?
Yep. Still a bad idea. It just happened to work out OK this time. Kinda like picking up a fat chick at a bar... Many times she will still be there in the morning wanting you to share the bacon, but every now and then you'll get lucky and her ass will be gone. :beer:
 

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Very bad Idea. Government picking which businesses succeed or fail based on political connections. You saw a very bad case of this with mutual funds. A very bad can of worms to open and totally outside the realm of what the constitution allows the fed to do.

Whether the feds get lucky and make some money off the deal, or get unlucky and lose like they usually do (buying mortgages or bailing out union pension funds for instance), they are not granted constitutional authority to give these political favors.

Unlike the Obamazombies, I don't care who is president and will not back either party's involvement in this kind of activity. Yes, the Repubs do it too - just on a much smaller scale.

And chrysler is far from out of trouble; they are simply taking out loans to pay loans.
 

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So I'm confused - is it still a bad idea?
In general its against our capitalism beliefs. I am glad because it saved my company and my job! It also saved the auto industry as a whole and we would be a severe depression with no end in site. Our current economic is growing slowly with a end in site.

Jason
 

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Lots of win here! Neither party or their politicians are worth a crap, except maybe to fill a fucking hot air balloon.
 

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Win/Lose

Win in this situation which should of never happened..... How can you have free enterprise but let the U.S. Gov. (thru the U.S.Tax Payer ) bail out select industries.
:usa:


It sucks being in an industry that is taking it up the ass because of this last go around !!!!!

:smokin:

it was invented for people on the grind, people on the struggle
 

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In general its against our capitalism beliefs. I am glad because it saved my company and my job! It also saved the auto industry as a whole and we would be a severe depression with no end in site.
I have to respectfully disagree with this.

Ford took no bailout money and is posting great annual profits, and moved up to the #3 automaker in sales world-wide.

Chrysler will be back for another handout before its over, remember this isn't their first government bailout. Iacocca was able to turn the company because he fired half the labor force and shut down plants that were making unpopular cars. There is no Iaccoca this time, the Gov gave 55% share of the company to the labor unions in an illegal bankruptcy ruling that shit on non-secured debt holders, stock, and bond holders - so the public lost millions in the deal. As stated before, all Chrysler did was take out a loan for the amount they borrowed in the bailout - taking out a load to pay a loan. Chrysler is still hemorrhaging money like crazy and posted big net losses last year and is losing market share. On paper, they are more broke now than they were before taking the bailout.

And look at our friends at GM who also "paid back" their government "loan". They used an equity line from the TARP program to pay off the bail-out money, just switching from one government program to another. Nobody has paid back anything, they are just shuffling debt around for more favorable publicity. We all demonized Enron and others for this type of accounting, but somehow this is fine.

I'm sorry. I know your livelihood depends on this stuff, but IMO companies like this deserve to fail. The economy will not crash and we won't all be raptured away if bad businesses fail. These companies would be formed into new entities utilizing the same resources and infrastructure. Better yet, bankruptcy could have given these failed companies a chance to completely reinvent themselves as leaner, better quality producers. That was their chance to break the Union's choke-hold, get rid of the incompetent fat at the top, and give the consumer the quality and efficiency in manufacturing that they demand but collective bargaining prevents.

Even discounting the unconstitutionality of these bailouts, this is far from an economic success story. We need to strip lawmakers of their power to do this.
 
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