The biggest issue is how this is all being declared a success and that Chrysler has somehow paid back their loans. See the government loan bailout was a success. A New York Times article yesterday was trumpeting the success of Chrysler but if you skipped past the headline you found a dizzying succession of money swaps and rotating lines of credit mentioned. See if you can make heads-or-tails sense of the following description of the money transactions that took place.
Chrysler was able to repay the loans because it had negotiated new financing with a consortium of investment banks that includes a term loan of $3 billion, debt securities totaling $3.2 billion and a revolving credit facility of $1.3 billion.
The loan repayment was also helped by funds from Fiat, which paid Chrysler $1.3 billion to increase its stake to 46 percent.
www.nytimes.com...
At any rate was anything accomplished other than the addition of a screaming headline that someone will reference this next election cycle? At what point does this become money laundering? Just curious. I really don't have the background to fathom how exactly this indicates that Chrysler is in better shape. It's all still going down-hill from my point of view.
washingtonexaminer.com< br /> (visit the link for the full news article)
