Bailout Scam
Tue, 05/12/2009 - 7:51pm
The Obama plan to save Chrysler would have sold Chrysler's most valuable assets into a new company co-owned by the U. S. and Canadian governments, Fiat and the United Auto Workers (UAW) -- with the UAW getting the biggest piece, 55%.
The trouble was: those assets belonged to somebody else. They belonged to the company's bondholders, who had a legal first claim. Under the administration's plan, those senior-secured creditors would have received just 29¢ on the dollar.
1. Bailout Loan to keep running for few months
2. Let Fail Anyway
3. Payoff union supporters with the assets
