Shock (not): We won’t get back the money we gave Chrysler and GM

This is why Americans were so opposed to the bailout:

Taxpayers are unlikely to recover their full investment in General Motors or Chrysler, government investigators said Monday in the latest review to cast doubts that the government will recoup the $80 billion it poured into the two automakers.

[…]

GM would need a market capitalization, or the market value of the company’s outstanding shares, of $66.9 billion for Treasury to make its money back, according to GAO. GM’s peak market value was $57 billion in 2000. Chrysler, which was last publicly valued at $37 billion in 1998 when it merged with Daimler AG, would need a market value of $54.8 billion.

That’s not going to happen even if the Dow suddenly bounces back to 14000.

Here’s a question: who holds Chrysler’s and GM’s debt?  Seems like they’re the only ones getting anything out of this deal. It looks like the plan is to force taxpayers to repay as much of that debt as possible before these dinosaurs completely fossilize.

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