NEW YORK (CNNMoney) -- U.S. taxpayers likely lost $1.3 billion in the government bailout of Chrysler, the Treasury Department announced Thursday.
The government recently sold its remaining 6% stake in the company to Italian automaker Fiat, wrapping up the 2009 auto bailouts that were part of TARP.
Fiat paid the Treasury a total of $560 million for the remaining shares, as well as rights to shares held by the United Auto Workers retiree trust.
Originally, the government committed a total of $12.5 billion to the struggling automaker, Old Chrysler and Chrysler Group. Of those funds, $11.2 billion has been returned through principal repayments, interest and cancelled commitments, the Treasury said. Chrysler paid back $5.1 billion in loans in May.
Even though that means $1.3 billion will not be recovered, the Treasury called it a "major accomplishment."
"With today's closing, the US government has exited its investment in Chrysler at least six years earlier than expected," Tim Massad, Treasury assistant secretary for financial stability said in a release.
As part of the loan agreement, Chrysler was given until 2017 to return the bailout funds. If it had taken the full term, the interest accrued on the loans would have significantly reduced the government's losses.
And this is what happens when government tries to get involved in the private sector!!! All of the bailout money from bush's to obama's handouts did nothing!!! It just prolonged inevitable.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
And this is what happens when government tries to get involved in the private sector!!! All of the bailout money from bush's to obama's handouts did nothing!!! It just prolonged inevitable.
The whole economy is being kept afloat by trying to keep it pumped with artificial money, they never allowed a correction to take place and when it does correct itself it will be brutal to everyone. What they did is make the situation 10X worse.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
IMO, Chrysler has been a lost cause since 1979 bailout.
GM is a different story. Much of GM, Ford, and Chrysler is manufactured by outside producers. Losing the big three all at once, would end America. Besides the Big Three jobs, many more jobs would be lost than in the Auto plants. Had GM failed, many of these AMERICAN parts producers would have also failed. Ford depends on these producers also and may have been dragged down with GM.
We are in the midst of the Bush Economic Meltdown... as bad as it is... just think of what it would look like if you added half a million auto workers and probably another one million or more support workers.
As bad as the Auto bailout has been, I still think it was the right thing, and the only thing to do under those circumstances.
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
IMO, Chrysler has been a lost cause since 1979 bailout.
GM is a different story. Much of GM, Ford, and Chrysler is manufactured by outside producers. Losing the big three all at once, would end America. Besides the Big Three jobs, many more jobs would be lost than in the Auto plants. Had GM failed, many of these AMERICAN parts producers would have also failed. Ford depends on these producers also and may have been dragged down with GM.
We are in the midst of the Bush Economic Meltdown... as bad as it is... just think of what it would look like if you added half a million auto workers and probably another one million or more support workers.
As bad as the Auto bailout has been, I still think it was the right thing, and the only thing to do under those circumstances.
Ah the to big to fail argument, let the government decide who wins or loses instead of the market.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
Ah the to big to fail argument, let the government decide who wins or loses instead of the market.
Yes, managed fascist political decision of who is allowed to fail, is much better than the unmanaged free market consequences of who fails. Image in the auto unions stop receiving their union dues - that would have been DEVISTATING to the Democrat Party. You can't leave the Democrat Party at the will of free markets. Or either party for that matter.
Ah the to big to fail argument, let the government decide who wins or loses instead of the market.
Yes but they will tell you that it is for the good of the country and it's residents!! That's what government has become. And folks are actually dumbed down enough to believe it! Sad!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
On this board, the term "too big to fail" applies to US Business. GM, Banks, Finance...
The context that I was referring to was the "USA, too big to fail". We could have held out and let GM sink, Chrysler would sink and drown immediately, GM would have taken a little longer... Ford would have lingered quite well for 10 years or so... but in the end, Japan and Europe would pick up the pieces at bargain prices... taken what's good, dump the rest and leave. The USA would never recover. Ever.
If it's acceptable to transform the USA into say... France, Spain, Australia... possibly some day if we worked very hard and managed lots of good luck, the USA may some day recovered to be on par with Germany... Then let it fail. Most Americans are not prepared to watch the USA sink into third world status.
IMO, the Auto bailout sucked, but was necessary.
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
It's called competition, Japan and other countries will continue to dominate the car market because they can provide a quality product for a better price. We need to compete in the market or we will eventually fail regardless of government interference. We rose to a superpower because of our ability to produce products, then the government started to step in with regulations etc and it killed us against the rest of the world. A 3rd world status maybe what is destined for us if we don't wise up and get the government out of the damn way.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
The Japanese produce that quality product (except toyota) that you mentioned WITH 100% Government involvement.
Maybe I'd be happy with Paul as my President. Who knows? With President Paul and no military, no manufacturing, no health care, no medicare... I'd understand what it means to be a middle class citizen in a third world country!
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
The Japanese produce that quality product (except toyota) that you mentioned WITH 100% Government involvement.
Maybe I'd be happy with Paul as my President. Who knows? With President Paul and no military, no manufacturing, no health care, no medicare... I'd understand what it means to be a middle class citizen in a third world country!
Oh brother, 1st Paul believes in a strong national defence and right now he is receiving more donations from active military members then all of the other candidates. 2nd Paul believes in a free market with less regulations, exactly what is needed here to return manufacturing. 3rd healthcare is not a right but he understands he can not just eliminate something that the people became dependent on even though it is a drain on us. He would like to start a transition over a period of years to make people, Gulp, more self reliant. If he can eliminate the tax burdens on the people then they can make their own choices with the money they saved. 3rd world country huh, lets see a high unemployment rate, insane taxes, a out of control government, and a devaluing currency, geesh we might be closer than you think Box thanks to our big government.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
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