Quote Originally Posted by Visbek View Post
GM and Chrysler were not going to emerge from bankruptcy. They would have been liquidated, because no one in the private sector had any interest in saving those companies. As noted, they were trying for years to arrange a rescue, and the private sector offered no help whatsoever.

The unions had already made significant recessions. And contrary to your claims, GM and Chrysler are apparently bouncing back, and hiring people, both union and non-union.
Actually, lets be honest.. Chrysler had two life lines thrown to it by the Private Sector.. Daimler AG merged with Chrysler in 1998. It failed horribly. So Daimler AG sold it to Ceberus Capital Management in 2007. Both Daimler AG and Ceberus put money into the Chrysler. Daimler AG put $300 million in it's pension fund 3 days before "bankruptcy" plus another $2 billion just to get rid of it and Ceberus backed $2 billion of a $4 billion treasury loan after pumping in $5 billion into Chrysler between 2007 and 2009, Ceberus lost $7 billion and all rights to the company for the bailout.

US government lost $1.3 billion the the Chrysler bail out and sold it to Fiat in 2011. Fiat probably would have bought most of Chrysler during bankruptcy.