All The News That Fits

This Is Not Your Father’s Bankruptcy

Posted by necessarygrace on May 1, 2009

So much for hopes that Chrysler’s bankruptcy filing would be a step in the direction of capitalism and free markets…

Chrysler LLC filed for an unprecedented, White House-sponsored bankruptcy Thursday, presenting a test for the nation’s economy and judicial system as the administration tries to ram a politically brokered deal through a New York bankruptcy court in 60 days.

President Obama, trying to save union jobs and benefits while promoting a new generation of “green” cars, said he was prepared to spend an additional $8 billion to try to reorganize the company in a way that leaves much of it intact but shifts control into the hands of unions, the government and Italian carmaker Fiat through a new alliance.

I’m thoroughly confused. Why was Obama so desperate to bail the auto companies out with billions of OUR dollars? What exactly were we rescuing them from? Because this “bankruptcy” looks to me to be just one huge bailout that puts Dear Leader in control of yet another industry.

Let’s see, so far Obama has fired the CEO of General Motors, and now he’s putting himself in charge of Chyrsler as well. Hmmm… it seems Obama might be taking Hugo Chavez up on his reading suggestions after all…

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2 Responses to “This Is Not Your Father’s Bankruptcy”

  1. Robin said

    I thought it was Bush who bailed them out before Obama was even President?

  2. Christina said

    Robin, Bush gets credit for starting the ball rolling, but Obama has been in the driver’s seat of the bailout almost since the beginning. From the Cleveland Plain Dealer back in December:

    “Saturday, December 20, 2008
    Friday – Chrysler and General Motors each get $4 billion in loans.

    January – GM gets another $5.4 billion in loans.

    February – If Congress agrees, GM gets another $4 billion.

    March – GM and Chrysler must show they are making progress in becoming more competitive or the government can revoke the loans.

    The person determining whether companies have made their best efforts to get those concessions will be an Obama appointee.”

    FWIW, Conservatives were adamently opposed to the bailouts under Bush. We knew where this would lead … though few guessed Obama would be able to take control of no less than four different industries in less than 100 days.

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