If it’s Friday night…

By Michelle Malkin  •  January 2, 2009 09:12 PM

…the government is giving someone somewhere a bailout. The Treasury Department announced tonight in a statement that Chrysler’s $4 billion loan went through. It’s the bridge loan to…more bridge loans.

Via AFP:

The US Treasury said it has finalized a 4-billion-dollar loan to troubled cash-strapped carmaker Chrysler.

“Treasury today finalized the loan transaction for Chrysler car company and funded the full amount of 4 billion dollars,” Brookly McLaughlin, a Treasury spokeswoman, said in a statement.

Chrysler Chairman and CEO Bob Nardelli said the loan would help the company “bridge the current financial crisis.”

“This initial loan will allow the Company to continue an orderly restructuring, while pursuing our vision to build the fuel-efficient, high-quality cars and trucks people want to buy, will enjoy driving and will want to buy again,” he added in a statement.

The loan is part of a 13.4-billion-dollar rescue package the US government approved in December for General Motors and Chrysler to stave off collapse amid tight credit and dismal sales.

The first segment of the bailout provides four billion dollars each to GM and to Chrysler, the smallest of the Big Three US automakers.

GM, the largest US automaker, was to receive an additional 5.4 billion dollars in mid-January and would be eligible for a further 4 billion dollars from February pending congressional action. Treasury has also provided six billion dollars in aid to GMAC, GM’s financial arm.

Under the agreement, the automakers will have to prove their viability by March 31 or the government could require the funds to be repaid within 30 days.

“The objective of this program is to prevent a significant disruption of the American automotive industry that poses a systemic risk to financial market stability and will have a negative effect on the real economy of the United States,” the Treasury said on its website Wednesday.

The Treasury added it would determine eligibility of participants in the program on a case-by-case basis.

“The Treasury added it would determine eligibility of participants in the program on a case-by-case basis.” In other words:

Eenie, meenie, minie moe.

One billion, two billion, three billion, fo’.

If the taxpayers holla, let ‘em roar.

Eenie, meenie, minie moe.

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Posted in: Subprime crisis

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Comments


  1. #1
    On January 2nd, 2009 at 9:15 pm, DesertLover said:

    More attempts to keep things quiet by Paulson and crew … the real bridge (loan) to nowhere …

  2. #2
    On January 2nd, 2009 at 9:22 pm, AlohaGuy said:

    “This initial loan will allow the Company …to build the fuel-efficient, high-quality cars and trucks people want to buy, will enjoy driving and will want to buy again,” he added in a statement.

    Apparently Chrysler will be building Toyotas and Hondas.

  3. #3
    On January 2nd, 2009 at 9:30 pm, backwoods conservative said:

    Don’t worry. The Democrats will get all that bailout money back when they raise taxes on those evil corporations.

  4. #4
    On January 2nd, 2009 at 9:33 pm, WarEagle82 said:

    I know that many, many people who post here claim this nation needs a revolution. We need to understand that we have already had one.

    The GOP and Democrats have usurped power and destroyed the limited constitutional government this nation once possessed. The constitution is, far from a “living document, a completely dead scrap of paper at this point.

    I don’t know who or when or if we will ever restore the limited government that once made this nation unique among nations. I fear it will be a long and costly undertaking if it ever comes to pass.

  5. #5
    On January 2nd, 2009 at 9:49 pm, right4life said:

    The GOP and Democrats have usurped power and destroyed the limited constitutional government this nation once possessed. The constitution is, far from a “living document, a completely dead scrap of paper at this point.

    very true.

    I don’t know who or when or if we will ever restore the limited government that once made this nation unique among nations. I fear it will be a long and costly undertaking if it ever comes to pass.

    not a chance. age follows age..and freedom is unusual in the history of this world…

  6. #6
    On January 2nd, 2009 at 9:56 pm, JohnnyD said:

    Under the agreement, the automakers will have to prove their viability by March 31 or the government could require the funds to be repaid within 30 days.

    That’s highly unlikely when in the next paragragh this is said:

    “The objective of this program is to prevent a significant disruption of the American automotive industry that poses a systemic risk to financial market stability and will have a negative effect on the real economy of the United States,” the Treasury said on its website Wednesday.

    The negative effect would be the billions of dollars being wasted on companies that are failing. Period!

  7. #7
    On January 2nd, 2009 at 9:58 pm, Dandapani said:

    Under the agreement, the automakers will have to prove their viability by March 31 or the government could require the funds to be repaid within 30 days.

    Ya, right….

  8. #8
    On January 2nd, 2009 at 10:05 pm, JohnnyD said:

    On January 2nd, 2009 at 9:22 pm, AlohaGuy said:

    Yeah, that caught my eye too AG. My favorite part was:

    while pursuing our vision to build the fuel-efficient, high-quality cars and trucks people want to buy, will enjoy driving and will want to buy again

    Just who’s vision anyway? And how sure are they about buying there products are they?

    I could be persuaded to have a vision too when spending $4 billion dollars. All you need to do is buy this snake oil I’m selling.

  9. #9
    On January 2nd, 2009 at 10:06 pm, allrsn said:

    On January 2nd, 2009 at 9:33 pm, WarEagle82 said:

    Well said.

    Imho Obamas first term will focus on fixing the 2010 and 2012 elections and vastly increasing the size of government. When the dems win in 2012 all hell will break loose, in no sense of the word will we be able to call ourselve a ‘free’ socity.

    Those who have paid close attention have seen the dems layout their strategic goal of socialism. Clintons nationalization of oil and healthcare. Polosie and Obamas nationalization of the big 3. Reids definition of patriotism as, giving daddy gov all your wealth. Obama declaring a open Marxist as him mentor and father figure. And much more.

    Lets not allow ourselves to forget Freddie, Fannie, and Acorn.

  10. #10
    On January 2nd, 2009 at 10:09 pm, 30 pcs of silver said:

    When will the spending spree end?

    Consumer spending has dropped continually since November. Smart people are saving their money in an effort to shore up their financial future. I know we are. In fact, we are doing our absolute best to minimize our debt; paying off a car loan early and reducing our credit card debt. We aren’t spending any more than we need to spend and if I were in the market for a vehicle, most assuredly wouldn’t be looking at any of the “Big 3″. So, we’ll prop up the UAW … anyone want to hypothesize about quickly they blow through 4-billion dollars?

  11. #11
    On January 2nd, 2009 at 10:10 pm, JohnnyD said:

    And how sure are they about us buying there products are they?

    There, that sounds better. That’s what I get for checking out the ‘Bama chearleaders!

  12. #12
    On January 2nd, 2009 at 10:14 pm, JohnnyD said:

    anyone want to hypothesize about quickly they blow through 4-billion dollars?

    Ever seen flash paper burn 30?

    Poof! Gone!

    How’s that for quick.

  13. #13
    On January 2nd, 2009 at 10:15 pm, right4life said:

    in no sense of the word will we be able to call ourselve a ‘free’ socity.

    thats right now, today. we don’t need to wait.

  14. #14
    On January 2nd, 2009 at 10:15 pm, Tennessee Dave said:

    Chrysler Chairman and CEO Bob Nardelli said the loan would help the company “bridge the current financial crisis.”

    “This initial loan will allow the Company to continue an orderly restructuring, while pursuing our vision to build the fuel-efficient, high-quality cars and trucks people want to buy, will enjoy driving and will want to buy again,” he added in a statement.

    Why didn’t they think of this years ago?

    Now let me say that I drive a GMC truck. I enjoy driving it. It isn’t the most fuel efficient vehicle on the road, but it does provide me a certain amount of safety while out amongst these insane Memphis drivers.
    Would I buy from GM again?
    A history of vehicles:
    GMC (this one)
    Chevy truck
    GMC truck
    Ausin Metro (well, I was stationed in England)
    Camero
    Vega (yes, but I was in college)
    Chevette
    Oldsmobile Cutlass

    It seems I buy American.

  15. #15
    On January 2nd, 2009 at 10:19 pm, DesertLover said:

    Since our hostess is in a poetic mood tonight I’ll add a little limerick to the thread …

    Three automakers from Detroit
    With business sense maladroit
    Hearing of big bailout plans
    They stuck out their empty hands
    To be filled with funds to exploit

  16. #16
    On January 2nd, 2009 at 10:23 pm, 30 pcs of silver said:

    On January 2nd, 2009 at 10:14 pm, JohnnyD said:

    anyone want to hypothesize about quickly they blow through 4-billion dollars?

    Ever seen flash paper burn 30?

    Poof! Gone!

    How’s that for quick.

    I just wonder what tall tale will be told then…

  17. #17
    On January 2nd, 2009 at 10:26 pm, John Deaux said:

    All they need now is a Super Bowl commercial to say thank you.

  18. #18
    On January 2nd, 2009 at 10:26 pm, JohnnyD said:

    Good one DL.

    Don’t think that could be improved upon, although, “along came a spider” popped into my head for some reason.

    Must be my pessimistic view.

  19. #19
    On January 2nd, 2009 at 10:34 pm, JohnnyD said:

    On January 2nd, 2009 at 10:26 pm, John Deaux said:
    All they need now is a Super Bowl commercial to say thank you.

    That would be after we get to see how wonderful those pickem up trucks perform in a desert driving through a fireball or outrunning a swinging hammer. Right?

    Then again, for $4 billion they could buy up all the time just to say thank you.

    Oops, they I go again. Sorry, my sarcasm is showing….

  20. #20
    On January 2nd, 2009 at 10:47 pm, JohnnyD said:

    On January 2nd, 2009 at 10:23 pm, 30 pcs of silver said:

    I just wonder what tall tale will be told then…

    Are you sure about that? There may not be enough penance in this earthly kingdom to pay for the lies that would be told!

  21. #21
    On January 2nd, 2009 at 10:47 pm, ArizonaNeanderthal said:

    The spending spree will end when the whole house of cards collapses. From there:
    Russia 1917
    Germany 1933
    China 1949
    Cuba 1959
    France every 18 months
    America 1775

    The choice is ours.

  22. #22
    On January 2nd, 2009 at 10:49 pm, 30 pcs of silver said:

    Are you sure about that? There may not be enough penance in this earthly kingdom to pay for the lies that would be told!

    I’m not so sure about many things these days.

  23. #23
    On January 2nd, 2009 at 10:54 pm, JohnnyD said:

    I’m not so sure about many things these days.

    Yeah, same here.

  24. #24
    On January 2nd, 2009 at 10:54 pm, madchef said:

    When ever government removes the risk of failure by bailing out industries, they only insure more failure. If a company or an individual has no incentive to prosper they will only become weaker.
    Now if the government takes over health care, it would seem logical that the overall health of the general public will decrease because they have no incentive to take care of themselves. Part of the reason people try to stay fit is because it is expensive to be sick.

  25. #25
    On January 2nd, 2009 at 10:56 pm, thefoundingfathers said:

    Never have so many “wise” men made such foolish decisions with “other” peoples’ money.

    I would trade all the Harvard and Yale grads for a few self made folks to take over and put this ship back on the right course. I can dream can’t I?

    However, with the dumbing down of the general population, the allowing of a larger and larger portion of the general public fooling themselves into raiding the national treasury to benefit themselves to keep from working, elected officials who are stupid enough to obilge and allowing more and more people into this country who care more about themselves than furthering this country, etc., we may have to tear US apart and put it back together again. As well written about in the Declaration by Mr. Jefferson.

  26. #26
    On January 2nd, 2009 at 10:59 pm, pdv said:

    Under the agreement, the automakers will have to prove their viability by March 31 or the government could require the funds to be repaid within 30 days

    If they presently had the money and was able to pay, then they wouldn’t need our money.

  27. #27
    On January 2nd, 2009 at 11:10 pm, Speakup said:

    And Middlefinger announces pay raises for UAW members in 3.2.1..

  28. #28
    On January 2nd, 2009 at 11:11 pm, BayStateRepublican said:

    Chrysler Chairman and CEO Bob Nardelli said the loan would help the company “bridge the current financial crisis.”

    Isn’t this the Nero who fiddled at Home Depot while Lowe’s kicked his a$$ in market cap?

    No surprise he would be busy rearranging the deck chairs on the Titanic.

  29. #29
    On January 2nd, 2009 at 11:15 pm, jencab said:

    Eenie, meenie, minie moe.

    One billion, two billion, three billion, fo’.

    If the taxpayers holla, let ‘em roar.

    Eenie, meenie, minie moe.

    Michelle, I’m laughing at your ditty so I won’t cry or throw my shoe. OY!!!

  30. #30
    On January 2nd, 2009 at 11:20 pm, jencab said:

    Can the government screw us anymore? Oh yes…Obama, Reid, and Pelosi will be in power.

  31. #31
    On January 2nd, 2009 at 11:27 pm, bjc said:

    *Chrysler will disappear in 2009, so of course, as expected, our money has been wasted.

  32. #32
    On January 2nd, 2009 at 11:28 pm, Send_Me said:

    This whole mess makes me want to buy a Toyota out of spite. That way at least I’d be supporting the American autoworkers who aren’t getting taxpayer bailouts because their companies and unions are incompetent.

  33. #33
    On January 2nd, 2009 at 11:49 pm, DesertLover said:

    Obama, Reid, Pelosi, Biden …
    The Four Horsemen of the Apocalypse

  34. #34
    On January 2nd, 2009 at 11:55 pm, MarcoPolo said:

    I think it should be “Eenie Meenie Miney More.”

  35. #35
    On January 3rd, 2009 at 12:23 am, MichaelO said:
  36. #36
    On January 3rd, 2009 at 12:36 am, MarcoPolo said:

    Want to see soemthing funny? http://blog.chryslerllc.com/comment.do

    The Chrysler blog, with the text of a “Thank You” ad that ran in the paper. (On our dime, of course.)

    The comments are awesome. Note that there’s no email verification system in place for their registration process…

  37. #37
    On January 3rd, 2009 at 12:38 am, Freddy said:

    On January 2nd, 2009 at 10:09 pm, 30 pcs of silver said:
    … anyone want to hypothesize about quickly they blow through 4-billion dollars?

    Jan 21st!

  38. #38
    On January 3rd, 2009 at 12:43 am, RetFireman said:

    So when do I get bailed out, and if not, why not and should I get a discrimination attorney now or wait a week?

  39. #39
    On January 3rd, 2009 at 1:11 am, johnsteele said:

    Obama’s first efforts at fixing things will be the 2010 election. Once that’s fixed then the 2012 election is in the bag. There will be no need for a 2016 election.

  40. #40
    On January 3rd, 2009 at 1:51 am, Southpaw said:

    As a taxpayer, the portfolio of companies I own shares in is starting to look pretty impressive, Chrysler, GM, AIG, Citigroup…(still waiting on New York Times). Of course my portfolio is only worth something if any of those companies survive, we’ll see. Now, if I can just keep my porfolio out of the hands of Bernard Made-off.

    BTW, when’s Made-off going to move out of his New York penthouse? I’ve already called a moving company and I’m wating to move in. I claim squatters rights on those digs. (What’s he going to do, have me thrown in jail for breaking the law?)

  41. #41
    On January 3rd, 2009 at 2:08 am, happy2behere said:

    I WANT to buy an American vehicle to help the ever shrinking manufacturing base in this country. However, I dont want to support the corrupt unions. Too bad.

  42. #42
    On January 3rd, 2009 at 2:41 am, AlohaGuy said:

    Isn’t this the Nero who fiddled at Home Depot while Lowe’s kicked his a$$ in market cap?

    Nice catch BayState! I knew that name was familiar. Yes, Home Depot became a mess under his leadership. And look at this from Wikipedia:

    “During his tenure at The Home Depot, Nardelli met President Bush at the White House in 2002 and was appointed to Bush’s Council on Service and Civic Participation (although he is no longer a member)….Nardelli also hosted a garden reception/fundraiser for Bush at his Atlanta home on May 20, 2004….”

    And voila – bailout money!

    BTW – the Wiki entry largely looks like Nardelli himself puffed it up.

  43. #43
    On January 3rd, 2009 at 3:43 am, graysonret said:

    It’s all about the unions. They have the real power there and the votes. They bark, congress jumps.

  44. #44
    On January 3rd, 2009 at 9:10 am, ArizonaNeanderthal said:

    They bark, congress jumps.

    We sit on our money eventually they die.The unions votes are concentrated. Ours are broad. It is now a test of will.

  45. #45
    On January 3rd, 2009 at 10:05 am, travlinman said:

    On January 2nd, 2009 at 10:56 pm, thefoundingfathers said:
    Never have so many “wise” men made such foolish decisions with “other” peoples’ money.

    I would trade all the Harvard and Yale grads for a few self made folks to take over and put this ship back on the right course. I can dream can’t I?

    However, with the dumbing down of the general population, the allowing of a larger and larger portion of the general public fooling themselves into raiding the national treasury to benefit themselves to keep from working, elected officials who are stupid enough to obilge and allowing more and more people into this country who care more about themselves than furthering this country, etc., we may have to tear US apart and put it back together again. As well written about in the Declaration by Mr. Jefferson.

    I agree, tff. Jefferson, Franklin and the rest of the founders (even Hamilton with his views on fiscal policy being somewhat different than Jefferson’s), would be calling for a large ‘tea party’ at the nearest harbor and are probably rolling spinning in their graves at this time.

  46. #46
    On January 3rd, 2009 at 10:29 am, Boomer said:

    What else do you expect from our corruptocrats sneaking a deal like this through on a Friday night hoping no one will notice? Thanks again Michelle for sounding the clarion of truth as they try to smoke another one by we the people. I am still interested in how many pissed off taxpayers will bother to visit the dealerships of these failing companies and pay up for their inferior products. If anything we should be demanding our free cars, trucks, and SUVs after all we will have more than paid for them with interest should GM or Chrysler survive.

    ΜΟΛΩΝ ΛΑΒE (mo-lone lah-veh) Translation: Come and take them!

  47. #47
    On January 3rd, 2009 at 10:36 am, FamilyMan said:

    I would like to know, under what PROVEN economic model are these jokers working under?
    GEEESSS!!!!!!!!!!!!!

  48. #48
    On January 3rd, 2009 at 10:43 am, DesertLover said:

    Boomer …

    How about Congress gives every taxpayer a voucher for the purchase of a new American made car as our bailout?

    Make that the way that the automakers get their bailout money … one car at a time … money to be paid by the government to the automakers when they submit the vouchers back to Congress for payment.

  49. #49
    On January 3rd, 2009 at 10:50 am, FamilyMan said:

    Has anyone in Congress made a monetary flow chart? How can we the tax payers have confidence in a plan without complete information. Our corporation are required by law to have their books open for inspection. Where is or governments open books?
    WHERE IS OUR GOVERNMENTS TRANSPARENCY?

  50. #50
    On January 3rd, 2009 at 12:52 pm, Sanddog said:

    On January 2nd, 2009 at 9:33 pm, WarEagle82 said:

    I know that many, many people who post here claim this nation needs a revolution. We need to understand that we have already had one.

    The GOP and Democrats have usurped power and destroyed the limited constitutional government this nation once possessed. The constitution is, far from a “living document, a completely dead scrap of paper at this point.

    I don’t know who or when or if we will ever restore the limited government that once made this nation unique among nations. I fear it will be a long and costly undertaking if it ever comes to pass.

    If FDR’s first two terms didn’t destroy us completely, I find it hard to believe this will end us.

    I will say this… I will NEVER again purchase a new vehicle made by a UAW worker. Never.

  51. #51
    On January 4th, 2009 at 9:10 pm, mijacat said:

    On January 3rd, 2009 at 2:08 am, happy2behere said:

    I WANT to buy an American vehicle to help the ever shrinking manufacturing base in this country. However, I dont want to support the corrupt unions. Too bad.

    ——–
    Toyota makes a heck of a lot of cars in North America.

    http://www.toyotatundra.com/about/our_business/operations/manufacturing/index.html

    I’ve been very happy with my Tundra and a series of Camrys… just bought the newest in the series this summer…

    Funny, a car company making a solid product in America that Americans like. I thought we couldn’t do that anymore…

    Mew

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