Obama's Chrysler payback scam

Secretary of Energy Steven Chu (left) meeting ...Image via Wikipedia
Conn Carroll:

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The Obama administration’s bailout agreement with Fiat gave the Italian car company a “Incremental Call Option” that allows it to buy up to 16% of Chrysler stock at a reduced price. But in order to exercise the option, Fiat had to first pay back at least $3.5 billion of its loan to the Treasury Department. But Fiat was having trouble getting private banks to lend it the money. Enter Obama Energy Secretary Steven Chu who has signaled that he will approve a fuel-efficient vehicle loan to Chrysler for … wait for it … $3.5 billion.

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I am not surprised they could not get a private loan with their recent credit history and the amount they still owe the government. This is just a bailout rerun. With voters still unhappy about the first one, there is an opportunity for Republicans to score some political points on this reminder.

The move is particularly irresponsible at a time when we have reached the statutory debt limit.
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