The answer to why your government is footing the bill for the wedding of Chrysler and GM, both ancient corporate dinosaurs with mountains of losses, might just surprise you.  Here’s a few reasons from a very astute investment advisor, Charles Delvalle from Agora Publishing, that might make you look at the US economy and our government's involvement with it in a new frightening way.
 Here are some of the more compelling reasons……….

2. It’s all about total car production. If GM takes over Chrysler, they are able to reduce total car production by a million or more vehicles per year. This allows GM to reduce the cars on the market, making it more likely that GM vehicle sales tick higher (as they replace Chrysler sales).

3. Job losses and pension guarantees. GM and Chrysler directly employ over 400,000 people and indirectly about 1.6 million – including parts makers, dealerships, mechanics, etc.

Now that doesn’t count the 600,000 currently receiving retirement benefits at the big three. If Chrysler fails, GM follows suit (and then Ford and the state of Michigan). And that would mean that the US government would have to take over those pensions. According to Forbes… “If GM/Chrysler were to go belly-up, the pension guarantee program would be overwhelmed and in technical default.”
So you see it’s easier to give the companies $10 billion now than it is to cope with 600,000 retirees later, that is if 10 billion will do the trick. Yep, socialization of corporate America is in full swing.

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