It turns out that Chrysler might be just small enough to fail.In the end, the Obama administration decided to back General Motors — at least for 60 days — but to effectively wash its hands of the much-smaller Chrysler after only 30 days. Barring a last-minute rescue by Italian automaker Fiat, U.S. taxpayers won’t put up another penny to back the company.
For all the times President Barack Obama’s been told he must prop up companies that are “too big to fail” — think Citigroup and AIG — he’s finally found one that he’s decided he can let go, if he has to.
White House sources said Chrysler isn’t viable as a stand-alone company, and without Fiat or more tax dollars, might go into some kind of “structured” bankruptcy. But auto industry analysts say a bankrupt car company isn’t much of a company at all — simply because shoppers don’t want to buy cars from a bankrupt company.
It’s not a step Obama would take lightly, for sure. But politically, it seems a step he’s seriously contemplating in the face of “bailout fatigue” in the heartland — but also Chrysler’s own specific situation. - Politico Story
I don't have a law degree, nor do I plan on getting one anytime soon. But, it doesn't seem to be that it would be within legal standing for the Government to decide who will receive bailout funds and who will not. In a free market system, it does not seem that legally the Government can say that they will save this company but not that one.
Furthermore, the CEO of GM Resigned after being pushed by the White House to do so. Can somebody please explain to me why he was asked to resign? The White House hasn't done the same thing with AIG, CITI, or any of those in the Financial Sector. As a matter of fact, many of the execs now work within the Obama Administration. The financial sector received much bigger bailouts.
I personally don't think that we should be bailing any of them out, but I am not the President. Maybe I will run in 2012. I don't think this one has a clue of what he is doing.
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