Thursday, July 21, 2011

Number of the Day

$1.3 billion: The estimated amount of money US taxpayers lost in the government bailout of Chrysler, after the government "sold its remaining 6% stake in the company to Italian automaker Fiat, wrapping up the 2009 auto bailouts that were part of TARP. Fiat paid the Treasury a total of $560 million for the remaining shares, as well as rights to shares held by the United Auto Workers retiree trust."

The treasury calls it a "major accomplishment," even though the losses would have been "significantly reduced" if the government had not closed out early and recovered interest accrued on the loans over the six years remaining in the original payment plan.

I'm no economist, but taking a $1.3 billion bath to sell off shares to a foreign corporation doesn't strike me as the best long-term deal for US taxpayers/workers.

I remember at the time of the bailouts, there were a bunch of dirty hippies asking whether it was really "Main Street" who was being bailed out, as was promised, even though the money wa going to "Wall Street." I believe we have our answer.