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Senior Advisor

The first Chrysler Bailout

The precedent for the economic bailout of a private corporation was done by congress Jimmy Carter in 1979. The following link will give you a short story of that effort sand how it turned out.Of course some think it would have been better if the corp had been allow to fail and the ramifications of that event be allowed to happen.

 

The end result that Iococcia led Chrysler through that era and out the other side. The corp was saved. Jobs were saved and the taxpayers gained $350 million for their role in guaranteeing the loans.

 

http://uspolitics.about.com/od/economy/a/chryslerBailout.htm

 

It looks like the same thing may happen again when and if GM and Chrysler recover. Perhaps our efforts haven't been in vain if two of our auto giants are kept in business.  Plus it may actually put some money in the treasury's pockets.

5 Replies
Veteran Advisor

Re: The first Chrysler Bailout

  Kraft-t, did you ever read Iacocca's book that he wrote back in the early 80s about that? It was called Iacocca: An Autobiography.

Senior Advisor

Re: The first Chrysler Bailout

No Tom , I haven't read it.

Senior Contributor

The second bailout is different

I just checked the doorpost  of my Dodge pickup, it has a label "This vehicle made in Mexico". I`m sure that parts like altenator, starter and such were made in China. So other than the dealership this last bailout won`t have the same bang for the buck......How`s that free trade workin` out fer ya? In the `79 bailout Chrysler was the first one with the mini-van and Ronald Wilson Reagan had the economy hummin` through the 80`s so people could buy, buy, buy. If GM and Chrysler doesn`t come up with a "mini-van" this time won`t work out the same. On top of that today both companies are combined with foreign auto co`s like Mercedes and such. Time`ll tell.

Senior Advisor

Re: The second bailout is different

If I remember right, the bailout included a huge tank and Jeep contract with the Pentagon.

Senior Contributor

Re: The first Chrysler Bailout

it seems by the job report and the housing industry that obamos stupidulous bill is right on track to bankrupt AMERICA---but tyhen that will help the muslim cause