Large corporations are being destroyed or taken over by the government. True government controlled corporations have taken over the economy, but they are not GM, AIG, Citygroup, they are Fannie Mae and Freddie Mac. As part of Chrysler's restructuring, the new Chrysler will be owned 20% by Fiat, with over 67% be controlled by the union group United Auto Workers. Fiat supposedly has an option to increase its share to 51%.  We will have to wait and see if that ever happens, given that voters have short memories. Fiat will supply engine technology (probably code for small fuel efficient engines that fit in very small cars)

            Perhaps this is Chrysler’s next luxury car:

             Not many in the media are questioning the use of taxpayer money to help finance Fiat, a Italian enterprise. Wasn’t TARP money supposed to be for U.S. financial companies? 

            The Supreme Court lifted the stay on the merger, but in a two page document left the legal issues open for future consideration. The following argument speaks of the reordering of the traditional bankruptcy process.

"The Chrysler and General Motors bankruptcies involve almost $100 billion in assets, and the government, without any specific approval from Congress, is using the bankruptcy system to re-order private property rights on a scale and in a way that America has never before seen," wrote Indiana Solicitor General Thomas Fisher in his appeal to the Supreme Court.”

          Objections to using TARP funds for other than financial institutions for which the law provides were opposed by US Solicitor General Elena Kagan by arguing that the definition of "financial company" is broad enough to include any company with significant operations in the US. Aside from torturing plain English, Fiat is not in the U.S, it is dentro Italia.

          The merger proposed by the government disposes of liability claims pending against Chrysler, which is not unheard of in bankruptcy proceedings, but this government sponsored merger is more like a throwback to the FDR administration, where anything goes in a Depression.