From the WSJ story this morning on the collapse of the auto bailout:
The collapse of the deal raises the stakes for Chrysler and its majority owner, Cerberus Capital Management LP. Lawmakers had called for Cerberus to put more money into the company, but Cerberus maintains it can’t because the bylaw of its investment funds prevents it from putting more than a small percentage of its investors’ funds into any single investment…. Chrysler Chief Executive Robert Nardelli told Congress the company would be unable to pay suppliers and employees if it doesn’t get loans by the end of the month.
So Chrysler’s owners say, “You’re nuts if you think we’re going to throw our money at our loser business model” — they sit on their own wallets, play chicken with their workers and creditors, and expect the idiot taxpayers to say, “No prob — we’ll pony up for you.”
All praise to Mitch McConnell for leading the charge that beat back this lunacy. Can someone explain why the White House thought this was a good idea?
The one and only.