Chrysler is not planning on paying back the 7+ billion dollars that they borrowed from the government (and tax payers such as you and I) in an effort to save themselves from bankruptcy. Yet Robert Manzo from the Capstone Advisory Group assumed that "the Treasury would forgive a $4 billion bridge loan gien to Chrysler in the closing days of the Bush administration, a $300 milion fee on that loan, and the $3.2 billion in financing approved last week". However, there is a 8% equity stake that the Treasury will recieve from the fruits of reorganizing the company, and is supposed to be used to pay back America for helping them out. Apparently though, the government knows that they will not be reimbursed but they are okay with that, the only reason for which I could imagine is because they have much larger problems on their hands. With the markets dropping, unemployment rising and the auto industry demanding more money, if one company goes bankrupt, that may just be a load off of their shoulders, a load that they are ready to move on and forget about. But what about the public who are unemployed, trying to raise a family and struggling to make ends meet? It does not seem fair that Chrysler gets off the hook that easily--but they still have to contribute about $4.7 billion, paying back the government a fraction of what they borrowed. Now the question is, was it worth it?
-CH
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