Chrysler is bankrupt – or is it?
The American automaker announced today that it will file for Chapter 11 protection from creditors, but the administration of President Barack Obama (which is “overseeing” the process) said that it would be a “quick” and “surgical” bankruptcy.
Also, none of the union contracts are in jeopardy, and the government is continuing to provide financing for individual car dealers.
Remember, Big Brother is Driving Now.
Amazingly, anybody with open eyes knew this was coming.
In fact, former Treasury Secretary Henry Paulson referred to the billions of dollars in bailout money that Chrysler got last year as a cushion for eventual bankruptcy – a comment which begs a lot more questions than it answers.
Seriously, how many of the 5 million Americans who have lost their jobs in this recession ever got that kind of a “cushion?”
What’s amazing is that Obama’s “automotive task force” actually allowed this step to be taken – even though it appears clear that more federal aid will be heading Chrysler’s way on the other side of “bankruptcy.”
Chapter 11 can’t become Chapter 7 (liquidation), after all.
Either way, thoug, Obama had wanted to avoid the public stigma of “bankruptcy” – or any word that in any way, shape or form reminds people of capitalism.