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U.S. Government Ends Chrysler Investment With $1.3 Billion Loss
FoxNews. ^ | 07/21/11 | FoxNews.

Posted on 07/21/2011 3:48:32 PM PDT by Doogle

The U.S government has sold its shares in Chrysler LLC at a likely loss of $1.3 billion in taxpayer money, the Treasury Department said Thursday, announcing the end of a controversial investment that resurrected the troubled auto company.

Italian automaker Fiat SpA, which has run the company since it emerged from bankruptcy protection in June 2009, purchased the U.S. government's remaining 98,000 shares in the auto company for $560 million.

(Excerpt) Read more at foxnews.com ...


TOPICS: Crime/Corruption; Government; News/Current Events; US: Michigan
KEYWORDS: autobailout; bailout; chrysler; clunkers; fiat; italy; michigan; uaw; unions
failure
1 posted on 07/21/2011 3:48:35 PM PDT by Doogle
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To: Doogle

So, we’ve lost 1.3 billion dollars AND a US automobile manufacturer to a foreign company.


2 posted on 07/21/2011 3:56:55 PM PDT by TwelveOfTwenty (Compassionate Conservatism? Promoting self reliance is compassionate. Promoting dependency is not.)
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To: Doogle

Since Chrysler owes the taxpayers $1.3 billion, I will take a 2012 Dodge Challenger 392 SRT8 in lieu of a check for my share.


3 posted on 07/21/2011 3:56:55 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Doogle

1.3 billion. Almost sounds small next to a 1.4 trillion dollar deficit.


4 posted on 07/21/2011 3:57:28 PM PDT by Huskrrrr
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To: SVTCobra03

Make mine a Super-Bee Hemi pickup.


5 posted on 07/21/2011 3:58:33 PM PDT by Huskrrrr
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To: Doogle
People talk about "government funds" or money from the government (or even "Obama's Stash") but the problem is that all of the above are actually funds that have been taken from those who are productive and are spent by people who have no reason to actually care about how the money is spent. So it's no big deal to throw money into a deep, black hole, throwing in good money after bad... The prudent thing to do would be to hope Fiat could turn the company around (OK, probably wishful thinking), but then, the administration is trying to divest itself from all of the "Government Motors" escapades before the election, so it doesn't really matter how much money they lose, as long as it's for political gains. Plus, it provided the most important benefit to the administration: Using other peoples' money, the administration managed to funnel millions of dollars into the coffers of their political supporters and cronies.

Mark

6 posted on 07/21/2011 4:06:31 PM PDT by MarkL (Do I really look like a guy with a plan?)
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To: Huskrrrr
1.3 billion. Almost sounds small next to a 1.4 trillion dollar deficit.

You're right, it's less than 1/10th or 1%. But then again, our government is so good at it, they like to do it a whole lot. A billion here, a billion there, pretty soon, you're talking about "real money."

Mark

7 posted on 07/21/2011 4:09:49 PM PDT by MarkL (Do I really look like a guy with a plan?)
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To: Doogle

Corrected Headline: “US Takes 1.3 Billion loss to United Auto Workers; bond holders told to go F**K themselves.” There, that fixes it.


8 posted on 07/21/2011 4:10:10 PM PDT by majormaturity
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To: Doogle

If you lose $1.3 billion on Chrysler alone and the new owner is a foreign company, FIAT, how can Obama claim with a straight face to have saved the American auto industry?


9 posted on 07/21/2011 4:28:05 PM PDT by newzjunkey (Coburn is a traitor. Obama loves the Gang of Six.)
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To: MarkL

The U.S. government is prepare)d to provide up to $10 billion in loans to finance the development of massive hydrocarbon reserves off Brazil’s coast (08/05/09)

Billionaire investor George Soros bought an $811 million stake in Petroleo Brasileiro (Petrobras) in the second quarter(08/15/09)

The Obama administration’s six-month delay in approving new offshore drilling leases in federal waters will become a new three-year ban, Interior Secretary Ken Salazar quietly told reporters last Friday. Which means that no new oil and gas leases will be approved during President Obama’s term even though two –thirds of the American public supports such activity, according to a December 2009 Rasmussen poll.


10 posted on 07/21/2011 4:30:26 PM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: Doogle
"U.S. Government Ends Chrysler "
11 posted on 07/21/2011 4:33:03 PM PDT by OKSooner (When someone tells you who they are, believe them.)
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To: newzjunkey
He saved the United Auto Workers who recycled that money into Campaign donations.
12 posted on 07/21/2011 4:33:28 PM PDT by scooby321
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To: grellis; AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; ...

Thanks Doogle. See, there’s nearly $600 million to delay the default. Nice bookkeepin’, Zero.


13 posted on 07/21/2011 4:39:56 PM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: newzjunkey

..he lies


14 posted on 07/21/2011 4:40:57 PM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: newzjunkey

Even more funny, The Senior Bond-Holders Obama gave a haircut - was the teacher’s union retirement fund.


15 posted on 07/21/2011 4:43:44 PM PDT by patton (I am sure that I have done dumber things in my life, but at the moment, I am unable to recall them.)
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To: Doogle
But the article states, Chrysler has made a remarkable turnaround from two years ago, when it was rescued by the government. The company earned net income of $116 million in the first quarter and is forecasting 2011 earnings of $200 million to $500 million. Under the leadership of Fiat CEO Sergio Marchionne, the company has cut costs and revived its sales by refurbishing most of its lineup of Jeep, Chrysler, Dodge and Ram vehicles. Its sales rose 30 percent in June compared to the previous year.

So if that's the case, we are not getting our money back because?

16 posted on 07/21/2011 4:57:08 PM PDT by Robwin
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To: Doogle
Chryslers to Rickshaws-1sm
17 posted on 07/21/2011 4:57:10 PM PDT by BobP (The piss-stream media - Never to be watched again in my house)
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To: Robwin
So if that's the case, we are not getting our money back because?

..ask your Congressman why

18 posted on 07/21/2011 4:58:53 PM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: Doogle

bump


19 posted on 07/21/2011 5:10:56 PM PDT by lowbridge (Rep. Dingell: "Its taken a long time.....to control the people.")
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To: Doogle

Nice of us to bail out a company so Italy could have it.


20 posted on 07/21/2011 5:26:48 PM PDT by Age of Reason
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To: Age of Reason

surprising it wasn’t Greece


21 posted on 07/21/2011 5:37:15 PM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: majormaturity

How much did the bond holders loose? I suspect they will write that off on their taxes. We’ll loose much more than 1.3 billion.


22 posted on 07/21/2011 5:43:50 PM PDT by cableguymn
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To: TwelveOfTwenty

MOST of that $1.3 billion actually went to UAW coffers, which gave a lot of money to obama.

this was a set-up from the get-go...


23 posted on 07/21/2011 5:44:57 PM PDT by max americana (FUBO NATION 2012 FK BARAK)
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To: MarkL
You're right, it's less than 1/10th or 1%.

Fuzzy math? One thousand billions make one trillion. 1/10th does not equal 1%. Try 1/1000th or .1%.

24 posted on 07/21/2011 5:51:55 PM PDT by roadcat
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To: Doogle

My father in law is always giving me a hard time because his dodge truck is so much better than my f-150. I will never let up on govt motors and Chrysler on stiffing us taxpayers.


25 posted on 07/21/2011 5:59:23 PM PDT by st.eqed
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To: Doogle

Chapter 7 would have been cheaper....


26 posted on 07/21/2011 6:00:29 PM PDT by pointsal
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To: roadcat
Try recognizing that the word "or" was a patent typographical error and was obviously intended to read: "...it's less than 1/10th of 1%."
27 posted on 07/21/2011 6:03:23 PM PDT by Mr. Lucky
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To: pointsal

so would have been Palin


28 posted on 07/21/2011 6:13:13 PM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: Doogle

How much of a haircut did the preferred bondholders take? I’ll bet it was > $1.3B.


29 posted on 07/21/2011 6:20:21 PM PDT by Cyber Liberty (Oh, well, any excuse to buy a new gun is good enough for me.)
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To: Springman; sergeantdave; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; ...
MICHIGAN PING LIST

Please freepmail me if you wish to be added or dropped from the mitten ping.

30 posted on 07/21/2011 7:22:43 PM PDT by grellis (I am Jill's overwhelming sense of disgust.)
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To: Mr. Lucky

Ha-ha, I’ve done that myself. A simple keyboard slip is never caught until after hitting the post button.


31 posted on 07/21/2011 7:51:55 PM PDT by roadcat
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To: cableguymn

Not sure how much they lost at Chrysler; the GM bankruptcy cost the bond holders multi-millions in losses. basically, the court told the bond holders - who are secured creditors - do go screw themselves. They got wiped out.


32 posted on 07/22/2011 9:42:30 AM PDT by majormaturity
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