No bailout for Chrysler

The days of the big bailouts for various companies who were squandering their profits are over. Chrysler LLC will find out by 11:59 pm tonight whether they can work a deal with their creditors or if they will need to file Chapter 11 bankruptcy to get out of their $6.9 billion debt. Talks with the Treasury Department  broke down early this morning, and the only way to salvage this is to convince 100% of their creditors to agree to the deal. If not all of their creditors agree, they will need to file bankruptcy. But all is not lost...even if they do file bankruptcy, they will get some government funding. Not only that, but Fiat is expected to sign on with Chrysler as a partner sometime Thursday.

While Chrysler will not get a bailout, they will still receive some assistance from the government under plan B of the bankruptcy law. That assistance, however, will be in the form of loans, creating more debt for Chrysler.And, if Fiat did sign on as a partner, there would be a brand new board of directors appointed by the government and Fiat, putting Chrysler's CEO out of a job. Even if they do not file bankruptcy, this shows how much of a slump this economy is in, but there is a light at the end of the tunnel.