Chrysler:

The Treasury Department has turned down a request by General Motors for up to $10 billion to help finance the automaker’s possible merger with Chrysler, according to people close to the discussions.

Instead of providing new assistance, the Treasury Department told G.M. on Friday, the Bush administration will now shift its focus to speeding up the $25 billion loan program for fuel-efficient vehicles approved by Congress in September and administered by the Energy Department.

I’m of two minds here. Backing this deal would essentially be a bailout of  Cerberus Capital Management who owns Chrysler. But there literally millions of people employed by this company, their suppliers etc. If Chrysler goes, whole towns will disappear. There needs to be a middle ground. Cerberus should not get paid, but we should find a way to save Chrysler.