Has the $700 billion GM/Chrysler bailout been a good investment?

[MooseyFlathead]

I am not asking whether or not it was Constitutional. Please answer just from an economics perspective.

Personally, every time I have invested in failing companies it was a disaster. Are our politicians investment gurus or pretty much detached from reality?
Carls is correct. Gm/Chrysler got only a portion of the 700B.

Doc, I agree that we should not ignore constitutionality. It just that I know the answer to that issue.

[ScottK]

Someone pointed out that their bailout wasn't $700 billion, it was chump change in comparison. All of these bailouts, though, imho, are like pouring kerosene on a fire. Basically, the banks were reimbursed for fraud and mismanagement. GM and Chrysler have proceeded to file bankruptcy anyway, so essentially, we have given foreign corporations billions of American taxpayer dollars in exchange for nothing. Not one job has been saved or created as a result of the bailouts. We should have received stock in those corporations and then distributed the stock to the people putting up the money, now that would have altered some economics.

[tpbthigb]

My answer to your question is yes because there are a lot (estimated 3 million) of "supplier" company's that would surely have gone out of business with out the bail out money. (It was really a loan by the way because bailout money does not always have to be paid back) GM only got 50 mil and I am not sure how much Chrysler ended up with but in any case I do believe it was worth it beacuse I feel like my job is at least as important as the white collar executives at the financial institutions who got bailout money too and they got the money without having to sit in front of congress and explain why they should get it and how they intend to "Rebuild" their companies in order to pay the money back. Just my opinion, thanks for asking this question, this has been bugging me for a long time now. Yes they are all pretty much out of touch because I think you would have to look pretty hard to find one of those people who knows the price of a gallon of milk with out having an aid go look it up.

[joshuaw]

i think it will be in the long run. better cars/ gas mileage.

[bluechristy]

Always the pessimist never have solutions - you must be a Red state Republican .
I hope it works - I would Hate to see millions of people out of work and no doubt their homes .
I know Republicans could care less .

[ThumperDoodle]

I'm not sure any investor worth their salt would expect to get returns on an investment months after the investment is made. Come on. Find something worthwhile to hit Obama and his fans....it takes no brains to answer this one.

[mike790000]

They did not get 700 billion and gm is almost back on track

[juano19]

Investment? Not good. When Studebaker went out of business, South Bend never recovered. The same thing could happen to a number of other cities if the auto industry would fail, so there is more at stake than just return on investment.

[Spacecase]

It's definitely NOT a good investment for one very big reason: management hasn't changed.

[RICH]

Their just bailing out their supporters, Im surprised they haven't bailed out Madoff yet.