Liberty Maven

Only the most die hard government teat-sucking person would be surprised by this. What most of us anti-auto-bailout folks believed back in December/January is starting to come to fruition. Chrysler has no ability to pay back the $7.2 billion in bailout money it received from your pocket and mine.

From CNN Money:

NEW YORK (CNNMoney.com) — Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler’s bankruptcy filings last week and confirmed by the Obama administration Tuesday. The filings included a list of business assumptions from one of the company’s key financial advisors in the bankruptcy case.

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler’s operations during bankruptcy.

An Obama administration official confirmed Tuesday that Chrysler won’t be repaying the loans, though a portion of the bridge loan may be recovered by Treasury from the assets of Chrysler Financial, the former credit arm of the automaker which is essentially going out of business as part of the reorganization.

Couldn’t this all have been avoided if they listened to us earlier this year? Next up GM… when POOF! Another obscene amount of your money vanishes. Once again, further proof that “a depression is a recession that the government tries to fix”.