Great news: General Motors has paid back their loans....with more taxpayer loans!

[XJEEPER]

General Motors announced this week that it repaid its multibillion-dollar taxpayer-backed TARP loans. GM even bragged that it was able to “repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying [GM] vehicles.” There was great fanfare, including expensive, around-the-clock GM TV commercials nationwide. But, the hype is not the reality. In fact, GM did not repay the loans with money it earned from selling cars. Instead, GM repaid the TARP loans with money it withdrew from another TARP fund at the Treasury Department.

"It appears to be nothing more than an elaborate TARP money shuffle," Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner.


The day before the GM story broke, Neil Barofsky, the government TARP watchdog, testified before the Senate Finance Committee. He explained that GM did not use earnings to repay its TARP debt. The April quarterly report to Congress from his office stated: “The source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account.”

http://www.foxnews.com/politics/201...gm-administration-loans-repaid-bailout-money/

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Misleading the American public to take more of our money, it's what the Federal Government is good at.

US Government takeover (taxpayer funded) of private businesses

--GM: Owns 60.8 percent, a $40.7 billion investment.
— Chrysler: Owns 9.9 percent after investing $12.5 billion.
— GMAC: Owns 56.3 percent after investing $17.2 billion.
— Citigroup: Owns 27 percent after investing $25 billion.
— Small banks: $69.1 billion invested in 641 small banks.
— AIG: Owns 79.8 percent in return for $47.5 billion invested. Federal Reserve has lent an additional $63 billion.

— Fannie Mae: Owns 79.9 percent after providing $75 billion.
— Freddie Mac: Owns 79.9 percent after providing $57 billion.

 

[Darky]

Actually, I'm pretty sure in this case, it's corporate America misleading the American public to take more of our money. Sure, the gummint may own 60% of GM, but somehow, I'm not certain that means that Obama directed the board to lie to us in this one.

 

[joe_peters]

Actually, I'm pretty sure in this case, it's corporate America misleading the American public to take more of our money. Sure, the gummint may own 60% of GM, but somehow, I'm not certain that means that Obama directed the board to lie to us in this one.

What I find even weirder is the numbers game--GM paid back the U.S. Treasury by taking $8+ billion from the U.S. Treasury. But wait, GM only paid back the U.S. Treasury $6+ billion? Oh, yeah, I think they took some of that U.S. Treasury money and paid Canada. WTF?

 

[XJEEPER]

Actually, I'm pretty sure in this case, it's corporate America misleading the American public to take more of our money. Sure, the gummint may own 60% of GM, but somehow, I'm not certain that means that Obama directed the board to lie to us in this one.

I didn't specify Obama, but our current government in general. GM is small in comparison to the Freddie and Fanny bailout nightmare, which those in power in Washington helped create.

 

[r33pwrd]

honestly I dont care if GM does this if it helps them sell cars and actually pay back the goverment...

 

[Darky]

I didn't specify Obama, but our current government in general. GM is small in comparison to the Freddie and Fanny bailout nightmare, which those in power in Washington helped create.

My point was, if GM's board lied, it's not the gov't lying.

 

[kastein]

honestly I dont care if GM does this if it helps them sell cars and actually pay back the goverment...

I think they should start making cars that don't suck and then maybe they'd sell better!

 

[Darky]

Have you had any dealings with the current crop of cars? They don't suck.

 

[kastein]

Got me there... I haven't really worked on GM stuff since 05 or so, and even then most of what I worked on was older than that.

 

[scottmcneal]

Have you had any dealings with the current crop of cars? They don't suck.

I found it easier to trade them in every 5 years...The last oil change my wife did cost us a new car..:doh: .LOL

 

[Darky]

The new CTS 08+ is awesome. I loved it. At Hertz, I drove that around a little, an Audi A6, Infiniti G35 sedan, and BMW 3-series. The Infiniti was the most fun, but the CTS was right behind it, and seemed to be the most liveable. Roomy, comfortable, gorgeous interior, and well put together.
The new 08 Malibu was really nice to. I'd had experience with both the 07 down and the 08+ and the 08+ was worlds better. Same for the Silverado, the previous gen wasn't bad, but the 07s are a lot nicer.

I think GM has finally pulled their collective heads out, but it'll take a while to fix the perception that was built over the last 20 yrs.