Feel the Burn

Feel the Burn http://www.thetruthaboutcars.com/bailout-watch-576-feel-the-burn /
TTAC commentator Corky Boyd offers a timely analysis:
“The administration has loaned or agreed to loan a total of $65
billion to GM and Chrysler in exchange for 60 percent ownership of GM and an 8 percent stake in Chrysler.”
If the two produce 3.5 million vehicles for the year (and that’s on the high side), that’s over $17,000 per vehicle of subsidy. And that doesn’t include the $15 billion loan to GM the government forgave in the bankruptcy and the infusion Chrysler will need before the end of the year.
Last year brought the use of a new term in finance, “Cash Burn.” I guess it’s a take off on the aviation term of fuel burn. It’s a very casual term for billions of taxpayer dollars that have to be used to make up the “burn.”
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Civis Romanus Sum

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