And it's only the beginning. We'll be throwing billions down the toilet on a daily basis for years to come.
The fact that Chrysler is going through Chapter 11 bankruptcy is in itself a form of bailout, since the government is providing the financing for the bankrupt company. Without Uncle Sam, no private investor would throw fresh cash into it, and it'd be a liquidation case. Game over.
But don't think that you, as the taxpayer, are getting any kind of senior position here.
In yesterday's initial court hearing -- which included the colorful revelation that the hedge fund holdouts had received death threats -- it was revealed that the financing is being offered interest free and that the government doesn't expect to get any of it back. That's $4 Billion in loans made in January and another $4 billion in DIP.