Chrysler Pays Off Government Loans

[2manyrocks]

Free markets exist largely in theory, but are not so easy to find in reality.

But saying that Chrysler paid off the loans is about like saying a person paid off his credit cards with a debt consolidation loan.

I looked for any quotes on the "payoff" from Lee Iacocca, but didn't find any. It is kind of interesting to see how this was handled this time versus the time Iacocca brought them back from the brink about 30 years ago.

 

[Alan L.]

Doesn't matter where the money came from. What matters is that they got the government bailout to begin with. Makes twice Chrysler has been bailed out. Must be nice to run a business with no risk of loss.

 

[20 20]

Must be nice to run a business with no risk of loss.

:thumbsup: :laughing:

 

[Dmace]

But saying that Chrysler paid off the loans is about like saying a person paid off his credit cards with a debt consolidation loan.

Still, that credit card company got it's money back and the debt was re-paid. Same thing!

Doesn't matter where the money came from. What matters is that they got the government bailout to begin with. Makes twice Chrysler has been bailed out. Must be nice to run a business with no risk of loss.

A "bailout" would NEVER be paid back. This was a LOAN that returned 20% INTEREST.

 

[2manyrocks]

Debt is debt. They just changed lenders and got a better i rate.

 

[Dmace]

Debt is debt. They just changed lenders and got a better i rate.

Still, no one said Chrysler paid off their loans and is debt free. Simply stated that Chrysler paid off their debt to the US Government, how that was paid is irrelevant. When's the last time the tax payers actually made money off a car company...?

All three manufacturers are getting hand-outs, grants, loans, etc... but their never paid back let alone with interest. Plus it wasn't "paid" with junk stock or TARP money...

 

[Joe H]

What happened to the Chrysler bond holders who lost their investment/savings/retirement when Obama wiped them out?

They got nothing and still have it.

 

[sld]

Fiat to buy remaining US stake in Chrysler - KansasCity.com

I just read this article in the paper this morning. The author is claiming that Chrysler will never repay up to 2 billion to the U.S. govt in the best case scenario. It says nothing about repaid in full with interest.

 

[Dmace]

What happened to the Chrysler bond holders who lost their investment/savings/retirement when Obama wiped them out?

They got nothing and still have it.

You mean investing in something isn't a guaranteed money maker and there's some chance that you'll lose money...
You do realize not all bonds are guaranteed to make money right?:mur:

Fiat to buy remaining US stake in Chrysler - KansasCity.com

I just read this article in the paper this morning. The author is claiming that Chrysler will never repay up to 2 billion to the U.S. govt in the best case scenario. It says nothing about repaid in full with interest.

Almost 100% of the money given to other auto manufacturers as well as banks and insurance companies will NEVER be paid back. The "interest" was between 7 and 14% and paid in the form of monthly payments plus they will still recover "some" of that other $2 billion with the 8.6% stock it will retain in Chrysler.

 

[crazyal]

You mean investing in something isn't a guaranteed money maker and there's some chance that you'll lose money...
You do realize not all bonds are guaranteed to make money right?:mur:

When you invest in a company it's assets are whats securing your investment. If they fail you (along with the other investors, creditors, and outstanding debts) get part of your investment back when it assets are sold off. When Obama stepped in he took the right for a court to decide how to split up the company assets, and yes he took the guarantee away from the investors.

Because of that I will never invest on GM or Chrysler. Lets face it, the bail out was political in nature and if allowed to fail the companies would have been bought up by companies on firm ground and would have continued to make vehicles. Must of the dealers, parts suppliers, etc would have survived and the investors would have gotten a share of the proceeds. So now my investments are not in companies that have political interest (like keeping union workers employed).