Doing the Big-Money Shuffle

Back in 2007 when anyone with a brain knew that the Bush bubble was already a bust the geniuses that comprise Daimler/Chrysler management induced Cerberus Capital with a hefty ($10 billion) assist from Morgan Stanley to buyout its American partner for over 80% of Chrysler's stock.

This of course was solid "free-market capitalism" infinitely preferable to a government bailout ... meaning Chrysler was still free to go on handing themselves those nice fat bonuses and churn out a shitty product without Washington sticking its nose in. Except in this late stage capitalism game otherwise known as the Ponzi shuffle the bankers at Morgan Stanley and their not-so-secret partners at Goldman Sachs and Citigroup, knew that with Hank Paulsen as their point man their high-risk bet on Cerberus would be covered by the suckers, otherwise known as the U.S. taxpayers.

Our barefaced banksters weren't satisfied with having Uncle Sam as their gullible (paid-off) backstop. Now that they've gotten their government loot they pipe up to say yes they would reduce the terms of their loan to Chrysler and Cerberus Capital but only in return for 40% stake in the newly minted Chrysler/Fiat. To quote a suitably aroused Michigan Governor Granholm: "Our economy is in turmoil as a result of Wall Street's irresponsible actions, and now some of the very institutions that received $90 billion in federal support are turning their backs on a company that employs tens of thousands of American workers." Oh, Jenny, how sweet and noble you sound...



Of course Chrysler's new venture with Fiat is about creating more paper profits. Expect it to rise and then spectacularly fail, which is why Cerberus is backing GM their other vital asset on government life support and scorning poor old Chrysler. The vulture capitalists foolproof M.O.? Pump and dump get your cronies to cry to the government then rinse and repeat...