By on May 11, 2009

Time did the math, and reports that the total cost of the recent wave of automotive industry “assistance” has reached $83 billion. With Chrysler’s bankruptcy not going well (286,687 2009 models and 36,370 2008 models languishing on lots, according to Fortune) and GM about to join it in court, that number will top $100 million by the end of the summer. GM bondholders are also requesting something more than ten percent of New GM’s equity to give up their debt. And guess who’ll pay for that? Meanwhile, a lousy $4 million in federal emergency grants are going to assist Michigan’s autoworkers who have been laid off by the industry.

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10 Comments on “Bailout Watch 527: $80 Billion. And Counting....”


  • avatar
    gslippy

    I think you mean $100 Billion….

    CBS reported this figure way back in October when the bailoutfest began “small”. Looks like they were spot-on – or low, if the blood keeps flowing.

  • avatar
    paris-dakar

    Of course, we have to continue to pay so the taxpayers don’t lose their investment.

    By my estimates, the cost of subsidizing the UAW is going to run over $1 billion per week. Easily. The only question is, when does the madness stop?

  • avatar
    like.a.kite

    You know what? That money doesn’t exist.

    Until it’s lent to someone, that is. Debt is more money than money is.

  • avatar
    educatordan

    Hmmmmmmmmmmm over 36,000 2008s? I bet I saw one of those last weekend when an elderly couple was looking at New Dodge Truck at my local dealer. One of the poor schmucks from the service department had the hood up and was trying to jump start it. Wonder how many months it had been sitting without being driven to kill that battery?

  • avatar
    gslippy

    There are even a few ‘07s languishing out there.

    A quick search on Autotrader turned up 5000 listings for ’07s, of all makes, models, and prices, some with multiple vehicles available.

  • avatar
    educatordan

    Hey any brand new 07 Crossfires hiding out there? I actually loved the styling of that car and didn’t mind that it only came with a V6. That might be one Chrysler that would actually end up being collectible.

  • avatar
    Robert Schwartz

    If we just shut down GM and Chrysler and sent the money straight to the employees …

  • avatar
    Stein X Leikanger

    I predicted a bill of 200 billion when they went to D.C. in their jets – now I think we’ll be racing past that before all involved realize it’s a lost cause

    It’s a sinkhole, without end.
    The automobile equation does not compute any more and needs to be reexamined. They might as well spend the money on retraining everyone as cobblers.

    There’s money to be made on redoing how we move across the ground, from the ground up.

  • avatar
    paris-dakar

    If we just shut down GM and Chrysler and sent the money straight to the employees …

    I said at the start that would have been cheaper in the long run. Mandatory $1 mil buy-outs to every UAW employee. Of course, that would have meant the death of the UAW and the Dems can’t consider that.

    Ironically, for all the criticism the Dems do of ‘trickle down’ ecomonics, this is the most disgusting example of that principle I’ve ever seen. Throw a billion $$$ a week at a politically connected labor union to keep the economy from going in the tank. [Holds nose]

  • avatar
    RickCanadian

    $80B ? C’mon, who’s counting? It’s just money…

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