Is the U.S. taxpayer really going to bail out an investment by one of the leading private equity firms? The very politically connected private equity firm Cerebus owns Chrysler, and its seeking its share of the Detroit bailout. It’s an empire built on debt. here’s how a recent New York Times story put it: “But if they fail Cerberus and its partners could lose their daring bets on Detroit. Without a bailout Cerberus could lose about $2 billion and suffer a stinging blow to its reputation. With one it might eventually profit from its troubled deals.”

Seems to me that the Cerebus investors should get wiped out first, no?