Chrysler: Playground of the Social State

It is scary what is happening at Chrysler these days. Scary, not just for the company itself and its employees, but also scary for lenders who routinely stick their necks out by providing capital to companies who employ a lot of people.

Over the past year we have seen just how important credit flow is. Now days it is much easier to appreciate the importance of available credit since it has virtually disappeared to many companies and individuals. TARP funds were approved and slathered about without sufficient scrutiny because, according to the powers that be, something had to be done immediately for the sole purpose of loosening up tight credit markets. There simply was not time to do the sane thing.

In the aftermath of this hurried infusion and the subsequent infusions of cash into the coffers of Chrysler and GM, we are now beginning to see what could result if an aggressive government is allowed through its extreme political might to supersede law and set aside private contracts as well as bankruptcy codes simply because Big Brother Obama knows best.

And this is supposed to make it easier for credit to flow in our future?

The fate of Chrysler and its workers pale in comparison to the wrecking ball that would be taken to economic order if bankruptcy judge Arthur Gonzalez approves the administration’s plan to give Chrysler’s secured creditors the shaft. And what prize will we-the-people get in return? A doomed third-rate car company majority owned by its militant union run by Italian management building congressionally designed “green” cars no one wants to buy financed by taxpayers into perpetuity because no private investor in their right mind will touch the company with a ten foot pole. Is this supposed to be economic policy or comic opera?

h/t neo-neocon

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