Chrysler has come out saying that they will be offering the famous “no interest” loans in the near future.  This move is obviously intended to stimulate car sales in our slowed economy.  The only problem with Chrysler’s plan is that you are paying for it.  The money for Chrysler’s no interest loan program is coming from the American tax payers to the tune of 1.5 billion dollars that the treasury has already o.k.ed the “loan” (I think only the most gullible of us believe that these are actually loans) will support the no interest financing according to Bloomberg.com:

The aid from the bank-bailout program lets the finance company help boost sales at Chrysler, which was rescued from collapse by $4 billion in U.S. assistance. Chrysler U.S. sales plunged 30 percent last year, the most among major automakers. Industry deliveries slid at least 27 percent in each of 2008’s final four months, in part because of a credit crunch.

“Chrysler’s sales were down 53 percent in December,” said Tracy Handler, an analyst in Troy, Michigan, for economic forecasting company IHS Global Insight Inc. “With more money to lend, sales probably would have been down 30 percent.”

Call me crazy, but this all seems backwards to me.  We are paying an American company money to sell cars to Americans.  So basically Chrysler can say the loans are “no interest,” but the truth of the matter is that the loans are just a way to make the top wage earners in this country finance cars for everyone else…one step closer to communism?  Perhaps.

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