Chryslers woes are all of our woes:
A Chrysler advisor has confirmed it: we’ll never see Chrysler’s government-provided $3.34 billion debtor-in-possession (DIP) financing again. Nor will Canada recoup any of the $1.16 billion they spent helping keep the zombie automaker alive through bankruptcy. Oh, and you can forget the $4 billion worth of US “loans” already bestowed upon Auburn Hills. As The Detroit News reports, all of it’s disappeared down the ChryCo-shaped rathole. “Ron Manzo, a senior financial advisor to Chrysler, said it is ‘highly likely’ the governments will recover nothing.
Now remember that President Obama has promised Chrysler — actually, Cerberus and their already-deep pockets — pretty much as many more dollars as they need to get through bankruptcy. Which, in this case, is a blank check to be cashed by Italy’s FIAT.
Welcome to the New Capitalism. It’s a lot like the old capitalism, only without that pesky risk of failure. Or of ever having to produce anything people might want to buy.