Detroit spread gloom on Feb. 17 as GM starkly warned of impending bankruptcy unless it gets more aid. By August, both Chrysler and GM had entered bankruptcy, and come out again in much smaller size, as they closed a fourth of their dealerships, slashed wage rates, and repaid creditors with 29 cents on the dollar. The government gave Chrysler away free to Fiat of Italy, which acquired ownership without investing any money. Meanwhile, the part makers, which employ more workers than the Big Three automakers, verged on disaster and begged for billions. The "[[cash for clunkers]]" proved to be a boondoggle for the rich at a cost of $3 billion to the Treasury.
====Obama policies problematic, say economists unpopular and publiccontroversial====
In the view of 51 mostly conservative economists polled by the ''Wall Street Journal'' in July 2009, the Obama administration's economic program is problematic. President Obama and Treasury Secretary Geithner both got an average grade of 70 out of 100 for their handling of the financial crisis, but those grades varied widely.<ref>Obama scored 59 in March 2009, Geithner 51, and Bernanke 71. See Phil Izzo, "Obama, Geithner Get Low Grades From Economists," [http://online.wsj.com/article/SB123671107124286261.html ''[[Wall Street Journal]]'' March 11, 2009]</ref> Former President Bush and ex-Treasury chief Paulson received average grades of 50 and 60, respectively, when economists were asked how they handled the crisis while in office. By contrast, Fed chairman Bernanke scored much better, with an average grade of 85.<ref>Phil Izzo, "Few Economists Favor More Stimulus," [http://online.wsj.com/article/SB124708099206913393.html ''[[Wall Street Journal]]'' July 10, 2009]</ref>
[[Image:Stim1.jpg|thumb|380px|Cartoonist Chuck Asay summarizes the debate]]