AUTO BAILOUTS NOT RECOVERABLE, OVERSIGHT PANEL FINDS

In a letter printed in The Washingotn Post May 31, I predicted that GM would have difficulty paying back its federal loans and would become the "Amtrak of the highways. " Now it seems a Congressional oversight committees agrees. Today's news:

"Taxpayers Likely to Lose on GM, Chrysler Bailouts, Panel Finds

"LANSING, Mich.—The U.S. government is not likely to recoup all of the $85 billion it lent to General Motors Co. and Chrysler Group LLC under the Troubled Asset Relief Program, the Congressional Oversight Panel said in a Sept. 9 report.

“Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount,” the report said. It said it is “highly unlikely” that about $5.4 billion of the loans extended to the old Chrysler LLC will be recovered, though estimates of the losses vary. The Treasury Department estimates about $23 billion of the government loans extended to the companies “will be subject to `much lower recoveries,’” the report said. "

"Much lower recoveries" as in zero, I suppose.

I wonder if this will get the coverage it deserves, or if we will continue to obsess on Obamacare.