Well, There You Go....

Rumor has it, Cerberus sees Chrysler as being worth more as a write-off than as an investment:

Meanwhile, Chrysler is understood to have retained a law firm that specialises in bankruptcy proceedings to begin a liquidation process if Congress does not agree to lend the money it needs to survive.

Cerberus doesn't need government money to keep Chrysler afloat. It needs government money to avoid taking a loss on what turned out to be a bad investment.

I reiterate:

I would offer Chrysler loans on one of two conditions:

1. Cerberus first sells Chrysler to a publicly traded firm, divesting itself of any and all interest in Chrysler (and yes, this still works as a subsidy to Cerberus, as it will increase the selling price); or

2. Cerberus guarantees the money Chrysler borrows, putting up its portfolio of investments as security.

If they are asking that this money be loaned to Chrysler Holdings LLC, with no recourse against Cerberus itself, I would tell them to kiss off.

That, of course, is exactly what they're asking.