Is GM & Chrysler gonna get bait out too?

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Rick

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GM plan to merge with Chrysler, one big problem they don't got the money to do it, i heard they had look up to the government bail them out, this is not first time in the 80's government loan chysler over 2 billion back then. When with this America car company learn..
 
The government is already guaranteeing $25 billion in loans for GM, Ford and Chrysler.

If they have to bail out the Big Three, it will take MUCH MORE than a guaranteed loan. Collectively, the Big Three owes $200 Billion in debt.

There is a moral hazard here. We can't let companies think that whenever they do badly that they are entitled to bailouts. If Uncle Sam is forced to rescue the Big Three, they should stipulate that every executive in the company being bailed out are not allowed to have golden parachutes. Then break up the companies and sell them off to return money to the Treasury-- The government should not own or run car companies.
 
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