Obama "optimistic" about Chrysler yesterday:
April 30 (Bloomberg) -- President Barack Obama struck an upbeat tone about the struggling U.S. automobile industry in a news conference that focused little on the economic and banking crises and instead touched on topics ranging from hand washing to state secrets.
“I’m actually very hopeful, more hopeful than I was 30 days ago,” Obama said last night about the likelihood that Chrysler LLC will reach a deal with debt holders, merge with Italy’s Fiat SpA and remain a competitive automaker. General Motors Corp. can also emerge from its financial woes as a “strong, competitive” company, he said.
Talks between the Treasury Department and lenders aimed at keeping Chrysler LLC out of bankruptcy broke down late Wednesday, making it all but certain that the car maker will file for Chapter 11 protection Thursday, according to people familiar with the discussions.
Administration officials, who have been braced for a Chrysler bankruptcy filing for weeks, say all the pieces are in place to get the country's third-largest employer through the court quickly, perhaps in a matter of weeks.
The talks with Chrysler's lenders broke down after the Obama administration's automotive task force worked into the evening to persuade several hedge funds and other lenders to accept a deal to reduce Chrysler's debt, said people involved in the talks.
Let's hope that not all of the President's optimism is so misplaced.