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Old 11-01-2008, 10:26 PM   #1
The_Blur
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Treasury Blocks Merger

The US Treasury denied a $10B loan necessary to make the merger between Chrysler and GM take place. The money would have been a loan that the new GM-Chrysler entity would pay back over time. The apparent alternative is a Nissan-Renault-Chrysler entity, making Chrysler an American-French-Japanese mutt. Article is by Leftlane.

Instead of just discussing as usual, I want to pose a question: why would the Treasury see domestic market consolidation as a bad idea? It would save millions in redundant funds, and Chrysler being owned internationally would send a lot of US consumer dollars abroad.
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