The fake Chrysler loan payoff

Hotair ^ | May 27,2011 | Bruce McQuain

[Hojczyk]

This week Chrysler went through the same sort of shenanigans

American taxpayers have already spent more than $13 billion bailing out Chrysler. The Obama administration already forgave more than $4 billion of that debt when the company filed for bankruptcy in 2009. Taxpayers are never getting that money back. But how is Chrysler now paying off the rest of the $7.6 billion they owe the Treasury Department?

The Obama administration’s bailout agreement with Fiat gave the Italian car company a “Incremental Call Option” that allows it to buy up to 16% of Chrysler stock at a reduced price. But in order to exercise the option, Fiat had to first pay back at least $3.5 billion of its loan to the Treasury Department. But Fiat was having trouble getting private banks to lend it the money. Enter Obama Energy Secretary Steven Chu who has signaled that he will approve a fuel-efficient vehicle loan to Chrysler for … wait for it … $3.5 billion.

This is simply more smoke and mirrors from the “Smoke and Mirrors” administration, now engaged in pre-election image burnishing. In fact, the payback (someone call Debbie Wasserman Shultz) involves allowing a foreign auto company to take more control of Chrysler and then tossing a loan for 3.5 billion from government on top of the Fiat purchase of Chrysler stock at a reduced price.

They want you to believe this signals a stronger and profitable Chrysler. In fact, it is a pathetic attempt to fool the public.

But it is even worse than that:

[Hojczyk]

So, to recap, the Obama Energy Department is loaning a foreign car company $3.5 billion so that it can pay the Treasury Department $7.6 billion even though American taxpayers spent $13 billion to save an American car company that is currently only worth $5 billion.

Oh, and Obama plans to make this “success” a centerpiece of his 2012 campaign.

[Hojczyk]

So, to recap, the Obama Energy Department is loaning a foreign car company $3.5 billion so that it can pay the Treasury Department $7.6 billion even though American taxpayers spent $13 billion to save an American car company that is currently only worth $5 billion.

Oh, and Obama plans to make this “success” a centerpiece of his 2012 campaign.

[org.whodat]

Same type of crap that has been going on at GM and AIG.

[KSCITYBOY]

btt

[Pecos]

Tell a big enough lie long enough, and the people will begin to believe it.

Yes, I know the source - another socialist with plans to destroy the U.S.

[rawhide]

Some people need to go to jail for this!

[Buckeye McFrog]

oh, if we can get control of the White House and solid majorities, there needs to be BUSLOADS of people going to jail over this

[Cheerio]

oh, if we can get control of the White House and solid majorities, there needs to be BUSLOADS of people going to jail over this

The only way this will ever ever ever happen is if the majority is TEA PARTY Reps and Senators. You honestly think elite RINOS have the guts to put anyone in jail? We can barely get investigations done from the likes of Issa - no disrespect but whom else is looking at RAT corruption and flounting of American LAWS? WPA anyone?

[ScubieNuc]

I’m confused.

The article says that Fiat needs to pay the Treasury Department $3.5 Billion dollars before it can exercise an option to buy 16% of GM stock. It also says that GM is getting another loan of $3.5 Billion for a “Green” car or something. And as of right now, it looks like Fiat can’t get a loan to buy the stock.

So besides the fact that taxpayers have (through Obama) poured over $13 Billion dollars into a company only worth about $5 Billion, how exactly does the Fiat offer/attempt make this worse?

[paul51]

So what. They are all too big to fail /s

[blueunicorn6]

“OK taxpayers, which cup is the little red ball under? You say ‘the middle cup’? Haha! Nope! Here it is in my hand! Now, give me another $10 billion.”