Auto bailout helped Obama’s friends, at taxpayers’ expense

March 1, 2012 04:35

looking out for the 93 percent of American workers who aren’t union members is not an Obama value. – Washington Examiner


Examiner Editorial


Obama wagered $85 billion on the two auto companies, and his own Treasury Department has predicted that taxpayers will never see at least $24.77 billion being repaid. That works out to about $95,000 for every Chrysler and GM employee. If Obama gave every employee at The Washington Examiner $95,000, we’d probably be chanting “four more years,” too.


Add those forgone revenues in, and the bottom line auto bailout loss is closer to $40 billion.


A linchpin of U.S. bankruptcy law is the absolute priority of secured creditors. If creditors aren’t 100 percent assured they will get their money back first in the event of a bankruptcy, no one would ever lend to troubled companies except at crippling interest rates. But by force of office, Obama violated this rule, forcing Chrysler’s secured creditors to take 29 cents on the dollar. This was an unprecedented violation of contract law.


And whom did this intervention benefit? The same union members chanting Wednesday for Obama’s re-election.


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