You always call people ignorant and right after you have shown your ignorance. I'll use an article from the ultra-conservative Heritage Foundation to give you what they say are the facts about the Chrysler bailout. This is from 1983.
1- The truth is that the Chrysler Corporation has gone bankrupt In the past three years, by every normal definition of the word. Chrysler has renegotiated its debts and restructured its organization in a way that greatly resembles a company going through Chapter 11 bankruptcy. Its creditors, like those of bankrupt firms, were forced to swallow sizeable losses. Chrysler was able to pay off more than $600 million in debts at just 30 cents on the dollar.. 2-Chrysler's creditors are not alone in being socked by the company's quasi-bankruptcy. The firm's workers have paid an even greater price. Despite the fact that the loan guarantees were approved by Congress mainly to protect jobs at Chrysler, the company has sent home nearly half of its employees, cutting its white collar work force by 20,000 and laying off 42,600 of its hourly workers since the loan guarantees were signed into law. Many observers, including Senator William Proxmire (D-Wis complain that the number of employees laid off at Chrysler in this period is at least as large--and may even have been larger than the number of jobs that probably would have been lost had Chrysler actually been forced into bankruptcy. Chrysler's creditors and employees have paid a price no different than they would have paid in reorganization under the bankruptcy laws the workers and creditors who have benefitted from federal generosity, who has? The answer: Mainly Chrysler's shareholders But not even all of Chrysler's shareholders benefitted: sensib1e stockholders-the ones who carefully monitored Chrysler's financial and management performance-- probably sold the stock well before the bailout occurred. Therefore, only two types of Chrysler stockholders really benefitted 'from 'the bail-out 1) less informed investors who either ignored the warning signs of Chrysler's impending bankruptcy or else failed to act on them, and 2) the stock holders who were gambling that the federal government would come to Chrysler's rescue and minimize their potential losses. 3- In early 1980, Chrysler was able to issue government-guaranteed bonds at an interest rate of only 10.35 percent, while Ford Motor Company was forced to pay about 14.50 percent for its unguaranteed bonds. If Chrysler did not have the loan guarantees, it would almost certainly have to pay a higher interest rate on its bonds than the more secure Ford Motor Company. Therefore, one would assume that Chrysler should be paying the federal government a guarantee fee of at least four percent. Yet Chrysler pays only one percent, or about $12 million a year. Chrysler attempted to make up the difference by giving the government 14.4 million warrants, which are certificates that give the government the right to purchase a share of Chrysler stock at $13 a share. Even if the stock price does rise to the point where American taxpayers would be fully compensated for the 300 million in interest subsidies that Chrysler will enjoy during the 1980s, the company is clearly not eager to see taxpayers collecting on those warrants In early 1983, Chrysler publicly demanded that the Treasury Department return the warrants to Chrysler, claiming that cashing in now-valuable warrants would amount to usury. Due to adverse public reaction, a Chrysler spokesman said that the company would not press the demand at this time. 4- Chrysler claims that cost cutting has been an important factor in the company's success. But Chrys1er's version of cost cutting provides a shaky foundation for long-term profitability. Examples: Carry- forward of tax losses. Chrysler's massive losses in 1979, 1980, and 1981 have given the company large tax deductions to cut its tax bills almost to zero throughout the 1980s. Of the 170 million earned by Chrysler in the first quarter of 1983 only half actually represents operating profit; the other half is attributable to Chrysler's large loss carry-forward & cuts in research and development (R&D) spending. On Sep 22, 11:40 pm, Gaar <[EMAIL PROTECTED]> wrote: > Actually holy... > > It seems the conditions of this "Loan" will be MUCH better than the > one with Chrysler. > > Your ignorance on the matter notwithstanding. > > On Sep 22, 7:46 pm, Hollywood <[EMAIL PROTECTED]> wrote: > > > > > Gaar, > > > Really? Are you telling me that the terms and conditions of this > > "loan" are EXACTLY the same as the terms and conditions of the "loan" > > given to Chrysler over 20 yeras ago? Is that the stance you wish to > > take? > > > On Sep 22, 6:25 pm, Gaar <[EMAIL PROTECTED]> wrote: > > > > And when Chrysler "scored" $1.5 Billion, way back when, they not only > > > repaid the Loans, with Interest, but the Warrants they Issued the > > > Government were also later sold and they made an additional $400 > > > Million, or 26%+ of the Loan amount. > > > > Those who fail to Learn their History... > > > > On Sep 22, 2:59 pm, Hollywood <[EMAIL PROTECTED]> wrote: > > > > > Philo, > > > > > And corporate America just scored $700 billion of the tax-payer's > > > > money. > > > > > On Sep 22, 4:30 pm, Philobealo <[EMAIL PROTECTED]> wrote: > > > > > > Suckling at the government teat for their entire lives, libs drain > > > > > and drain our economy to the point where they have now broken the > > > > > banking system. IF there's gonna be a bailout, I want to make sure > > > > > that the government TAKES those foreclosures from brokeback, broke-ass > > > > > libs and kicks them out on the street where they belong.- Hide quoted > > > > > text - > > > > > - Show quoted text -- Hide quoted text - > > > > - Show quoted text -- Hide quoted text - > > > - Show quoted text -- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
