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"It was a slam-dunk success, " said Moody's chief economist Mark Zandi, who testified in a contentious Senate hearing alongside the embattled Big Three auto CEOs in December 2008. Zandi points out that following the bailout, auto-industry employment stabilized and then rebounded, and the companies re-emerged as profitable entities. Ten years later, Zandi is unequivocal that the auto bailout was crucial to reviving U. industry in the Great Recession. For one thing, the U. recovered all but about $9 billion of the auto bailout money. "It felt like economic Armageddon. We were losing millions of jobs, " he said. "The real concern was that the auto companies would go into bankruptcy and never come out, be completely liquidated. They'd shut factories, everyone would be fired. All the suppliers, the dealerships, would be liquidated, and there would be no U. auto industry left. That's what really spooked people. " "Their fair share of mistakes" But Zandi also acknowledges that "in theory, this didn't feel like good policy.
"And people think that caves are tight spaces, " said the boss of the Lenexa-based company. "We've got all the room to expand that someone could use. " ©2016 The Kansas City Star (Kansas City, Mo. ) Distributed by Tribune Content Agency, LLC. Never miss a story with the daily Govtech Today Newsletter. Subscribe