CHESSNOID

The truth behind most of our government bailouts of companies is that they were run poorly before the recession.  I am talking about the bailed out companies, but that statement could also apply to our current government.

Our government committed a moral hazard when they decided to use taxpayer money to bail out private for profit companies.  I am disappointed in the Obama administration for its wasteful spending specifically on helping corrupt company CEOs pay themselves obscene bonuses even though the company they managed was bankrupt.

WASHINGTON (AP) –

Taxpayers face losses on a significant portion of the $81 billion in government aid provided to the auto industry, an oversight panel said in a report to be released Wednesday.

The Congressional Oversight Panel did not provide an estimate of the projected loss in its latest monthly report on the $700 billion Troubled Asset Relief Program. But it said most of the $23 billion initially provided to General Motors Corp. and Chrysler LLC late last year is unlikely to be repaid.

“I think they drove a very hard bargain,” said Elizabeth Warren, the panel’s chairwoman and a law professor at Harvard University, referring to the Obama administration’s Treasury Department. “But it may not be enough.”

The prospect of recovering the government’s assistance to GM and Chrysler is heavily dependent on shares of the two companies rising to unprecedented levels, the report said. The government owns 10 percent of Chrysler and 61 percent of GM. The two companies are currently private but are expected to issue stock, in GM’s case by next year.