You know, it’s bad enough that our Federal Government utilizes our tax dollars to choose winners and losers in the marketplace. It’s worse when we lose $1.3 billion on the so-called ‘investment’. Furthermore, it’s really bad when we bailed out a failed company just to see them become a foreign automaker. Next week, that will come to fruition when the Treasury completes the sale of it’s 6% stake in Chrysler to Italian automaker Fiat. Here’s the story.
I don’t think you’ll see that little fact being touted by the chest-thumping Obama cronies who have been running around declaring the auto bailouts a huge success. Somehow, I missed it. Losing $1.3 billion in our money? Failure. Bailing out a failed company while delivering an uppercut to the stakeholders in the process? Failure. Bailing out a foreign automaker with our tax dollars? Failure.
Per usual, the mis-information campaign would have you believe that had we not stepped in, Chrysler would have simply ceased to exist. All of its jobs would have simply vanished. All of its assets would disappear. Wiped off the face of the earth. Wrong.
A structured, orderly bankruptcy would have occurred. The stakeholders would have been paid off in a normal manner without simply being wiped out with the union and Fiat coming out smelling like a rose thanks to the Obama brokered deal bypassing existing bankruptcy law. No $1.3 billion in tax dollars wasted. And the reformed company would be back open for business whether it simply be a re-structured Chrysler or under the banner of new ownership. Capitalism at work. Losers with failed business plans lose. They get out of the way for someone else to give it a try.
Not in this environment. You are rewarded for your indiscretions. I would imagine a poll would reflect that the auto bailouts were a good thing. Despite the tax money lost. Despite the stakeholder losses. Despite the fact that the incentive has now been increased to engage in shoddy business practices. Why wouldn’t you? Take some risky gambles, you can’t fail because even when you do, our federal government is standing by to reward you even further. And to top it all off, Chrysler is now officially going to become a foreign automaker. No longer number 3 of the Big 3. Now just another foreign automaker operating within our shores. Pathetic.