So the skinny on the Chrysler deal is this:
UAW was owed $6.5 billion; after the restructuring, they will receive $4.6 billion+ note at 9% interest
UAW will also receive $600 million in legacy costs from Diamler
UAW will have 55% equity in Chrysler
and the UAW will have authority to place a director on the board (total number of directors on board = 9)
Tax payers are owed $4 billion from TARP... after restructuring agreement, we will receive... NOTHING
Tax payers also owed $300 million in fees... after restructuring, we will receive... NOTHING
According the the chapter 11 bankruptcy agreement, the tax payers will give an additional $3.2 billion, and if Chrysler does not file chapter 11 again, we will give them an additional $4.7 billion
Tax payers will have 8% equity in Chrysler
US government will appoint 4 of the 9 board of directors
Canada was promised 20% continued production in their country
They get 2% equity in Chrysler
And they get to appoint 1 director to the board
SECURED creditors get little if anything...
Cerberus held $500 million in 2nd lien debt
Cerberus owned 81% of the company
Cerberus owned the Chrysler Headquarters in Auburn Hills
Cerberus has agreed to WAIVE all of this for.... NOTHING!!!
So, Chrysler will be run by 2 governments and a union (sure to be a success) and a heavily secured creditor gets nothing? Are you kidding? Is this administration the mob?
Next up, government run health care, government run student loans (direct lending instead of bank loans secured by government... and "public service" for loan approval), cap and trade/green energy (economics professor from Spain, Dr. Gabriel Calzada-, reports for every "green job" we create, we will lose 2.2 other jobs. “the U.S. could lose 6.6 million to 11 million jobs while it creates three million largely temporary ‘green jobs.’”
Thomas J. Pyle of the Institute for Energy Research adds:
So we potentially lose 6-11 million jobs, but we gain 3 million...let's celebrate! Never mind Spain's unemployment rate is 17.5% , so we should definitely jump on green/clean energy during a recession... sounds a lil' like the $3.4 trillion dollar budget... oh, but, wait, they're cutting $100 million! Okay, you didn't buy that? They'll up it to $17 billion (announced today). Great fiscal policy!!! If our family budget well exceeded what we could afford and I agreed to cut out my morning coffee, we'd be on par with the government cuts.
But Michelle has great arms... lets focus on that... the media loves those arms.