Taxpayers lost $9.26 billion on the U.S. government's automotive industry rescue program, according to a final tally released by U.S. Treasury this week.
The government said it recovered $70.42 billion of the $79.68 billion it gave to General Motors, Chrysler, Ally Financial, Chrysler Financial and automotive suppliers through the federal Auto Industry Financing Program. The program was part of the larger Troubled Asset Relief Program, or TARP.
The government lost money, but far less than initially expected when the program was launched in 2009. What's more, the program prevented GM and Chrysler from going out of business — an event most economists and automotive analysts said would have caused the entire industry to collapse and thrown the Midwest into a deep depression.
At the time, some critics argued GM and Chrysler should be allowed to fail and that government should not be interfering with the natural course of the market.
"This program was a crucial part of the Obama administration's effort to stop the financial crisis and protect the economy from slipping into a second Great Depression," U.S. Treasury Secretary Jack Lew said on Dec. 19.
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4 comments:
From the article - spot on:
The government lost money, but far less than initially expected when the program was launched in 2009. What's more, the program prevented GM and Chrysler from going out of business — an event most economists and automotive analysts said would have caused the entire industry to collapse and thrown the Midwest into a deep depression.
Obama did the right thing.
And Ford did not take a taxpayers bailout because they know how to run a business. Perhaps we should allow Ford to manage the USA.
At the time ford owned kia, Hyundai, Mazda. Gm had nothing to compete and still dont. The Germans are taking the industry as a whole with vw leading the pack. They own 10 car companies alone. Gm will one day soon fail completely. Chrysler is back on life support with fiat keeping them alive.
"Obama did the right thing."
Uh, why?
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