Chrysler Bailout and the Fallout

May 2009:

President Obama gave a speech where he says that every dime that is loaned to Chrysler will be repaid before FIAT is allowed to take over the majority ownership of the company. Take a look at the video here. 

April 2011:

“Today’s announcement takes us one step closer to exiting the US taxpayers’ investment in Chrysler,” Tim Massad, US Treasury official for Financial Stability, commented. “We are looking forward to the full repayment of our loan to Chrysler, which today’s announcement from Fiat is contingent upon.”      

In May of this year, Ron Bloom, the Assistant to President Obama for Manufacturing Policy gave a speech at the Chrysler Manufacturing plant in Sterling Hieghts Michigan.

You can watch this speech on YouTube here.

If you fast forward to the 4:40 mark, you will hear Mr. Bloom boast that Chrysler has paid back their loan from the U.S. government in full., and touted this as one of the great successes of the Obama Administration saving the American auto industry.

June 2011: 

Obama’s weekly radio address, says Chrysler has paid back every dime.  You can watch that video here.

Lets fast forward to July 21^st, 2011:

From CNN - Some quotes from Tim Massad:

“The fact that the company has done so well -- that they were able to go out and raise private capital to repay us the loan so quickly, is really the big story."

"We didn't make the auto interventions to make money, we made them to save jobs -- and on that front, we dramatically succeeded."

What is he talking about?  Turns out that the United States Government is going to take a $1.3 billion loss on its loan to Chrysler.

You can read the article yourself from CNN Money.

Is it any wonder why many people have a hard time believing the government is going to spend our money wisely?