Originally Posted by cssnms
And thanks to good ol' Uncle Sam they are doing so much better.
They would not have folded, they would have come out of chapter 11 leaner and ultimately more profitable and the US tax payer would not be on the hook - they would have been forced to scrap their union contracts, which is part of the reason they were in the mess to begin with. This move by the Obama administration was nothing more than political pandering to the unions. What is their stock price today?
Its not GM or Chrysler folding, its all the suppliers folding that would then cause related companies, like Ford, to fold. Before you say otherwise, you might want to read the testimony to Congress where Ford flat out states letting GM and Chrysler fold will bring down the entire industry, we don't want or need your money, we need you to give it to them so we all don't go down.
It was the only bailout that actually needed to happen.
Oh, and it started under Bush, not Obama, from funds already set aside for TARP.