Can anyone offer a 30 sec synopsis of what happened at Chrysler, specifically regarding the taxpayer money given them a couple of months ago?
Did the govt. force Chrysler into bankruptcy and thereby relieve them of paying back the billions they got earlier? The govt is becoming the DIP lender , right? So it's first in line as a creditor (or among the first, including employees and whatnot)? this applied to new debt, but not pre-filing debt, right???
Are the first billions of tax $ simply gone now? protected by bankruptcy? What about all the talk about making sure the taxpayer was protected, and the car-czar, and all that??? Was that all just bullshit? Could they not have gone bankrupt without absorbing billions of taxpayer $ first?
Likely I am just misunderstanding.
I guess a more profound question might be "Does it even matter?" It's all just play money? Technically the fed could just "create" a couple of billion fewer dollars than it had planned to, and everything is offset back to the hypothetical circumstance where no money flowed to Chrysler as a bailout?
Maybe I'm just ridiculously stupid, but I'm having a hard time grasping what is fundamentally going on here. (I understand clearly how Chrysler fucked up their business, so no need to explain that; what I'm not clear about is the bailout $'s, where the taxpayers are in line to get them "back," and if it even matters, given the source of the money).
lol, trying to imagine lending my neighbor a bunch of money (unsecured), and then forcing him into bankruptcy to make all his other (secured) creditors get money. wtf?
Did the govt. force Chrysler into bankruptcy and thereby relieve them of paying back the billions they got earlier? The govt is becoming the DIP lender , right? So it's first in line as a creditor (or among the first, including employees and whatnot)? this applied to new debt, but not pre-filing debt, right???
Are the first billions of tax $ simply gone now? protected by bankruptcy? What about all the talk about making sure the taxpayer was protected, and the car-czar, and all that??? Was that all just bullshit? Could they not have gone bankrupt without absorbing billions of taxpayer $ first?
Likely I am just misunderstanding.
I guess a more profound question might be "Does it even matter?" It's all just play money? Technically the fed could just "create" a couple of billion fewer dollars than it had planned to, and everything is offset back to the hypothetical circumstance where no money flowed to Chrysler as a bailout?
Maybe I'm just ridiculously stupid, but I'm having a hard time grasping what is fundamentally going on here. (I understand clearly how Chrysler fucked up their business, so no need to explain that; what I'm not clear about is the bailout $'s, where the taxpayers are in line to get them "back," and if it even matters, given the source of the money).
lol, trying to imagine lending my neighbor a bunch of money (unsecured), and then forcing him into bankruptcy to make all his other (secured) creditors get money. wtf?