The poor will pay for the Chrysler bailout – NYTimes.com
Last year, Cerberus and about 100 co-investors bought 80.1 percent of Chrysler for $7.4 billion from the German carmaker Daimler. It also bought a controlling stake in GMAC, the finance arm of General Motors. Since then Chrysler has eliminated more than 30,000 jobs and struggled to keep itself afloat while its sales have plummeted. Cerberus is pressing to have Chrysler merge with G.M., but G.M. has said a tie-up is off the table. Chrysler is asking the government for $7 billion to get through the next few months.
Cerberus, named after the mythical three-headed dog that guards the gates of Hades, has a fierce reputation on Wall Street. Many bankers and investors are reluctant to talk openly about the company, which is renowned, even feared, for its hard-nosed deal-making.
But Cerberus is also pursuing its interests aggressively in Washington, where some lawmakers have questioned why the government should assist the privately owned Chrysler. In addition to Mr. Snow, the firm’s chairman, Cerberus’s Washington hands include Dan Quayle, the former vice president, and Billy J. Cooper, who has worked as partner at the lobbying firm Patton Boggs. (via Chrysler’s Friends in High Places – NYTimes.com).
This scandal is one big whopper – but for the next 15 minutes. Like, Andy Warhol said 40 years ago, in future everyone (yes even you) will get 15 minutes of fame. So, it is with this scandal.
Who will pay for this bailout is the important question. The NY Times, of course, does a good job in covering this up – and showing that the US will pay for the bailout of US Corporations. The American tax payer in the meantime moans as though he is paying this bill.
The US Government, funded by the BRICS nations will use its printing presses to fund Chrysler – the bill for which, of course, will be seen by the poorest of the world – through the Bretton Woods mechanism.
When will we junk the dollar and the Euro?