Jim Chanos: “We are really rewarding failed business decisions repeatedly”
Jim Chanos, the famous shortseller, was on CNBC talking about the auto bailouts. Chanos thinks the story the administration is telling us about the success of the bailouts is misleading. Note the figures that Chanos cites on the return on the government’s bailout investment in the automakers. The government is playing fast and loose here by not including the pre-bankruptcy support in its numbers. I should add that this is the same kind of sales pitch they are doing on TARP and the AIG bailout.
Chanos’ bottom line on this and other bailouts:
"We are really rewarding failed business decisions repeatedly."
Chanos is still short shares of Ford (F).