Chrysler Loan Leads To $2.1 BILLION Loss For Treasury (Losses could top $34B)

[Ruby the Liberal]

WASHINGTON — The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009.

Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.

Treasury said Monday that Chrysler repaid $1.9 billion of a $4 billion loan, which was extended before the company filed for Chapter 11. The government hopes to get another $500 million from the company that emerged from bankruptcy, Chrysler Group LLC.

The original loan was made in January 2009, when the Bush administration was scrambling to rescue Chrysler, GM and their auto financing arms.

More: http://www.huffingtonpost.com/2010/05/17/chrysler-loan-leads-to-21_n_579404.html

[customerserviceguy]

1. 66,000 jobs

divided into $34 billion is half a million bucks per job. Was it worth it?

[Ruby the Liberal]

3. Is that how many jobs were saved/retained at GM & Chrysler?

[customerserviceguy]

4. That's just the Chrysler ones

since the OP refered only to the Chrysler costs.

[WhiteTara]

5. every manufacturing job

spins off 10 other jobs, so probably.

[customerserviceguy]

6. The suppliers for Chrysler

would have supplied parts for any auto manufacturer, including those who were able to sell extra cars that Chrysler would not have sold, if it had simply disappeared.

[WhiteTara]

7. was there an auto maker in the wings

to take over the Chrysler place? And the spin off jobs aren't just suppliers, but throughout the entire chain.

[customerserviceguy]

9. Who says

that one other company would have taken Chrysler's place? Why wouldn't the other automakers just eat up Chrysler's market share? People who are in the market for new vehicles would have to shop somewhere.

[WhiteTara]

10. I thought part of the object was to save

American manufacturing jobs. Market share and employment aren't the same.

[customerserviceguy]

11. Well, for half a million bucks apiece

we've saved a few manufacturing jobs. How long do you think we can keep doing it?

[WhiteTara]

12. for every manufacturing job

there are 10 other jobs created because of it. Also, we aren't continuing to pay and they still have jobs.

[customerserviceguy]

13. As I tried to make the point before

Those ten jobs that you assert are "created" would exist, anyway. Those suppliers and the people supported by the artificially created jobs would just happen where the customers spent money without the government bailouts.

This is simply using the Federal treasury to determine who wins and who loses in an unfair market.

[The Northerner]

2. As high as $34 billion? Ugh

[NNN0LHI]

8. I would still rather push a Chrysler than drive a Honda

Maybe if Japan and Korea would allow American made cars into their countries like we allow theirs in here I would feel different.

But they don't.

Don