The Hidden Disaster of Obama's Chrysler Plan

Obama promises to recoup all the taxpayer-funded loans being funneled into Chrysler/Fiat before Fiat can regain majority control of the company. Wonderful idea, right?

Wrong. Obama's plan is built upon one major assumption: That Chrysler/Fiat will re-emerge as a company with value. A company that can make money by selling cars once again.

Suppose any of the following happen in the years ahead:

a) Fiat no longer wants to own Chrysler and tries to pull out of the deal

b) The new company makes cars no one wants to buy

c) The restructuring turns out badly and results in the company losing even more money than before

d) Any combination of the above three

If the new Chrysler/Fiat company loses all its value after we as taxpayers loan them billions of dollars, there won't BE any money left to repay. And that's the kind of change we can't invest in.