Your tax dollars at work - GM and Chrysler

According to the Wall Street Journal (subscription required), General Motors is planning to use loans "aimed at helping Detroit retool plants to meet new fuel-efficiency standards" to finance a purchase of Chrysler. So, not only is one failing automobile manufacturer planning to acquire another failing manufacturer to keep, but they plan to use money that was intended to help them change from their failing ways.

It gets weirder and worse:

GM and Chrysler's majority owner, Cerberus Capital Management LP, have been negotiating a complex deal in which GM would end up owning its smaller Detroit rival, but the parties have struggled to line up financing. The combined entity would need about $10 billion in new equity to cover the cost of laying off workers, closing plants and integrating the two companies, say people involved in the talks.

They need $10B to cover the costs of laying off workers and closing plants?!

[You can insert your own string of incredulous expletives here]