Yes, but those loans were paid back with interest, and no bond holders were screwed as a result of the bailout.
He did get bailed-out by the federal government. America would have been better off if Chrysler didn’t get bailed out, but broken up and sold off.
It set the precedent for bail outs and crony capitalism. It was a union protection scheme by Carter. It rewarded consistent poor performance with tax payer money.
It set the stage for a thief like Obama to steal from creditors and give to the union. Nobody should be proud of that.
Still shouldn’t have been bailed out.
Allowing businesses to fail, if need be, is central to our economic system, and taxpayers should never be on the hook for favored bad managements.
Still shouldn’t have been bailed out.
Allowing businesses to fail, if need be, is central to our economic system, and taxpayers should never be on the hook for favored bad managements.
“Yes, but those loans were paid back with interest, and no bond holders were screwed as a result of the bailout.”
Not only that, but the people who had faith that Iacocca could fix the company were rewarded VERY handsomely. When I was in college, I took one accounting class, which to this day I have found valuable, and the professor was very good, making the class actually interesting. He showed us that the reputation of Chrysler had actually pushed its stock price BELOW the value of Chrysler’s cash value even broken up and sold off - and suggested (off the record) that we take out a student loan to buy some stock. Within a few years, the stock had gone up 500%. This was the first of many blown opportunities in my life, and worse, it was a lock.
Didn’t Chrysler repay the loans by the end of the first year?
Thanks to the K car. ;)