Posted by Jonathan Adler:
Kaus on the Chrysler Deal:
http://volokh.com/archives/archive_2009_05_03-2009_05_09.shtml#1241626359
[1]Chrysler + Fiat = Chooch!
The rationale for the bailout was that a bankruptcy would kill car
sales, so the government had to step in and negotiate all the
bankruptcy-style concessions without actually having a bankruptcy.
But Obama was unwilling to get the U.A.W. to make the
bankruptcy-style concessions that would be necessary to have a
viable Chrysler. . . And Chrysler wound up in bankruptcy anyway.
Prediction: It will either fail or suck up continuing annual
taxpayer subsidies in the billions. In the process it will keep
flooding the market with cars and make it harder to save GM and
Ford. It didn't have to be that way.
References
1.
http://slate.com/blogs/blogs/kausfiles/archive/2009/05/06/chrysler-fiat-chooch.aspx
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