Muscatine

Could Republicans be in for a hard time next year now that the auto industry is struggling back to its feet? Democrats say yes. On a Tuesday morning conference call with reporters, former Democratic Govs. Jennifer Granholm (MI) and Ted Strickland (OH) said voters in their states are enjoying thousands of new jobs thanks to the auto industry bailout Republicans (these days, anyway) love to hate.

And with Chrysler completing its repayment of $7.6 billion in federal loans six years early, Democrats say the Republicans running for president -- all of whom slammed the bailout program, they say -- have found themselves on the wrong side on what has turned out to be a successful jobs program.

"Midwestern families would have been left out in the cold: no job, no income, no industry" if Republican bailout foes had their way, Granholm said. "And these voters are not going to forget it."

http://tpmdc.talkingpointsmemo.com/2011/05/as-chrysler-pays-up-democrats-call-on-republicans-to-say-sorry.php?ref=fpblg

ABF. Always buy Ford. No bailout needed.

As The Truth About Cars reports, the loan pay back is just another Obama con job:

Back in November of 2009, when GM announced that it would repay its government loans, it didn’t take much investigation to realize that The General was simply shuffling government money from one pocket to the other and that true “payback” was still a ways off. … And now that our government finds itself “contemplating a runaway deficit and getting rid of its 8 percent of Chrysler’s equity,” would you believe that a similar federal money-shuffle is under way? Believe it.

American taxpayers have already spent more than $13 billion bailing out Chrysler. The Obama administration already forgave more than $4 billion of that debt when the company filed for bankruptcy in 2009. Taxpayers are never getting that money back. But how is Chrysler now paying off the rest of the $7.6 billion they owe the Treasury Department?

The Obama administration’s bailout agreement with Fiat gave the Italian car company a “Incremental Call Option” that allows it to buy up to 16% of Chrysler stock at a reduced price. But in order to exercise the option, Fiat had to first pay back at least $3.5 billion of its loan to the Treasury Department. But Fiat was having trouble getting private banks to lend it the money. Enter Obama Energy Secretary Steven Chu who has signaled that he will approve a fuel-efficient vehicle loan to Chrysler for … wait for it … $3.5 billion. TTAC comments:

Now, technically the DOE loan program is supposed to be used for specific, qualifying retooling projects, so Fiat can’t literally take the DOE money and use it to pay back the government loans. But freeing up $3.5b in capital that would otherwise be spent on retooling with low-cost loans will make it infinitely easier for Chrysler to secure the $3.5b in debt refinancing it needs. And, in light of the GAO’s pointed criticisms of the DOE loan program’s fairness and transparency, it’s hard to overlook the coincidental nature of Chrysler’s need for $3.5b and the government’s allocation of extra funds to apparently guarantee a low cost loan to Chrysler for precisely the same amount. After all, we’ve seen this movie before..

So, to recap, the Obama Energy Department is loaning a foreign car company $3.5 billion so that it can pay the Treasury Department $7.6 billion even though American taxpayers spent $13 billion to save an American car company that is currently only worth $5 billion.

Oh, and Obama plans to make this “success” a centerpiece of his 2012 campaign.

I can't really say that I ever thought of Michigan or Ohio as "midwestern states".

But then, when you hold the record for the highest and longest-sustained period of unemployment since WW2, you have to grasp at anything you can to hold on with.