GM repaid America? Guess where it got the money!
May 3, 2010 by Shane BorerPosted in: Debt Consolidation, General Economy, Special Report
The economy must be on the mend — after all, GM just paid back its government loan in full, right? Wait ’till you hear where the auto company got the money from.
If you’ve seen GM’s latest television commercial, you’ve heard CEO Ed Whitacre’s claims that the auto company had paid back its loans from the U.S. and Canadian governments, in full, with interest, five years ahead of schedule.
That might sound like great news from the car manufacturer, but it’s only slightly true. The struggling auto giant repaid its $8.1 million in bailout money by using a set aside amount of Troubled Asset Relief Program (TARP) money.
Senator Chuck Grassley, head Republican on the Senate Finance Committee, said the move by GM “appears to be nothing more than an elaborate TARP money shuffle.” He also added that “the loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials.”
Of course, not all politicians have lashed out against the move. Vice President Biden commended GM’s financial rebound and called the loan repayment a “huge accomplishment.”
Tags: Bailout, Debt Consolidation, GM, Government loan
May 3rd, 2010 at 3:13 pm
Of course GM didn’t pay the money back with profits…. they haven’t shown any profits for years. Doesn’t anyone in the media question this voodo ‘Obamanamics’ anymore? Wouldn’t it have been clear to any business editor that you can’t repay anyone anything until you produce a profit and actually have money?
May 3rd, 2010 at 8:51 pm
Gary,
The mainstream (Uberliberal) media are an integral part of the great experiment in Obama-voodoo-Talkanomics.
The cornerstone principle is to use half-truth and white lies (una mentira blanca). Note Newsweek’s cover: America is Back! Can you blame them? They talked the economy into a Great Recession at the brink of Great Depression, why not try the same on an upswing?
Regards.
May 3rd, 2010 at 10:54 pm
Glad GM shuffled the money over to the TARP. At 5% interest the tax payers should be seeing some appreciation if GM does well. Hurray!
May 3rd, 2010 at 11:03 pm
To Gary:
GM filed bankruptcy and abolished most of there debt. That is how they are able to show a profit. Its basically a new company that’s not weighed down by pension plans or a stigma of cars made in the US aren’t built well.
Take your Republican scare tactics, ignorance and stop listening to right wing conspiracy theorist. That do nothing but bash every move of the Obama administration makes.
The reason were in this mess in the first place is because we had an 10 rule of “Conservative Republicans” that did nothing but spend spend spend and now right wing is no longer in control. Republicans are hell bent on budget reform.
You should be applauding the current administration for stopping and turning around the worst economic situation since the great depression. If the current administration didn’t invest into America fiscal future with the stimulus and bailouts the economic fallout and job loss would of been more substantial then the depression. The current administration is responsible for stopping an avg of 1 million jobs losses per month and turning into a 100k+ per month gain and stock market going for 6k to 10k in under a year. These numbers alone in my opinion out weigh everything George Bush did in his entire 8 year run.
Stop the bickering, name calling and the misinformation. Support your leaders that have been appointed by majority. If we don’t start supporting our leaders this “bipartisanship” will lead to the demise of America as we know it.
May 3rd, 2010 at 11:12 pm
Thank you for clarifying. I was curious how they had such a large loss last quarter then amazingly repay their loan a few weeks later.
May 4th, 2010 at 12:13 pm
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May 4th, 2010 at 12:37 pm
Any merit Christopher’s arguments may have is overshadowed by the fact that he is an idiot.
May 4th, 2010 at 12:39 pm
Christopher,
Nice attempt, but I’m afraid you’ve missed the mark, as do most Obama-lovers. What you fail to realize, is that Obama is worse than Bush, and on so many levels. As you lefties love to point out, Bush ran up a tremendous deficit. Then again, who was in control of Congress for much of that time? And who is it that sets the budget? The (then Democratic) House, that’s who. Who is in control now and can barely pass legislation, only along party lines? The Democrats. Who promised to “end partisanship” and bring a “new day” to Washington? Obama did. And who has run up the highest deficit in our history? Obama. You can’t borrow your way out of debt, try it in your own house and let me know how that works out for you.
GM didn’t make a profit, they simply moved our money, bailout money, from one pocket to the other and then claimed they did a great job at paying the money back. Try that with your own money, move it from one pocket to another and see if you make a profit. I’m guessing you won’t, but maybe that’s just me. Again, nobody borrows their way out of debt. Google Dave Ramsey and educate yourself.
By the way, your statement on unemployment is all wrong, not sure where you got your misinformation. The fact is that there were never 1 million jobs per month lost, and there are not 100k+ jobs being created now… and what’s this about the stock market going from 6k to 10k in a year? Where on earth did you get that one?
Please take your own advice, and stop the misinformation. Educate yourself, don’t just listen to MSNBC. Stop blaming Bush for Obama’s administration’s amateurish attempt to run our lives. Try to realize that Obama and his circus of tax cheats and crooks are the ones leading to America’s demise.
May 4th, 2010 at 1:20 pm
To Christopher,
Step back and take a look at what you just said to Gary.
GM filed bankruptcy and abolished most of their (not there) debt. What that means is they shafted all the people they owed. Imagine how you would feel if you let someone borrow money and they just tell you, “You know what I made a mistake and I can’t pay you back, sorry!?”. Well guess what, it was your tax money they wrote off from the last bail out they received.
Don’t get me wrong, you have a good thought about supporting GM. I have two Saturns and a Ford. I believe in buying American to support American workers. I spent 20 years in the military defending the American idea and still believe we have the greatest country in the world.
So now it is the Republicans fault for spending, spending, spending. No Christopher it is our fault for letting them. A government for the people and by the people. We elected them and we are responsible for letting them get away with it.
Anybody that spends more than they make is going to have problems. Do you spend more money than you make? The current administration is doing the same thing the last administration did and that is spending money they do not have. The money our children will be paying in taxes.
You don’t have to agree with your leaders to support them. In fact that is why we have free speech in this country, to challenge our leaders to do a better job. Because I for one think they have stopped listening to the people and listen to the high paid lobbyist.
The problem is ours, we are the only people who can fix it. Not a president, not a congress, we as a people have got to make our voice heard by using the voting power our forefathers gave us.
Freedom is not free and never has been. We fought for it when we created this country and we must continue to fight for it.
What are you going to do to fix the problem Christopher??
May 4th, 2010 at 2:22 pm
Christopher,
You are utterly insane. The only conspiracy here is the coup that is taking place in front of your eyes by this administration. Don’t worry, you have supported them so the worst you will get probably is general poverty and long lines at the doctor, grocery store and the gas pump as they ration your life to death. Speaking of death, you might get to pay less taxes than some as your life will probably end at least 10 years earlier if you get sick. Think it’s all just talk, give it five more years or less. Why don’t you look at our GDP to debt ratio. “President Obama’s fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation’s economic output by 2020, the Congressional Budget Office reported Thursday.” http://www.washingtontimes.com/news/2010/mar/26/cbos-2020-vision-debt-will-rise-to-90-of-gdp/ That is insane. Our governemnet is leaving above it’s means. And non of these numbers include the amnesty figures and the Puerto Rico addition as a state which “progressives” are working on right now which if that happens, then the additional bodies added to the welfare system will almost double. That will mean our debt numbers will double almost overnight putting our debt ration at like 160% of our GDP. All Obama and the leading democrats want is more power and your soul. Ready to give that up?
And please don’t even mention “bipartisanship”! The administration and senate and house democrats could care less about bipartisanship. Obviously, they would love to have Republicans and independents follow blindly the suicidal objectives they have in place but thank God they used some common sense and have stood somewhat against them. They haven’t done it enough in my opinion and that will show during the next election if we get to have one.
Death awaits the foolish.
May 4th, 2010 at 4:00 pm
TARP seems to be a good thing for our country: Yes, we own some of GM now, with high prospects for those shares to be repurchased by GM. TARP was initiated under the previous administration, and at present the projections are that it will cost us way less than the savings and loan bail out a few decades ago: Originally expected to cost the U.S. Government $356 billion, the most recent estimates of the cost, as of April 12, 2010, is down to $89 billion, which is 42% less than the taxpayers’ cost of the Savings and loan crisis of the late 1980s (wikipedia: http://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program)
It is interesting to hear you call each other ‘insane’ and ‘an idiot’. Do you think you can sway opinion by name calling?
You need more research in your lives, not simple acceptance of any story, whether apparently scientifically based, presented by ‘honest’ journalists, or from any random source. For instance, the story about the CBO’s projection that the Obama budget for 2011 will generate an increased deficit. Remember, the budget has not been approved. It is precisely this kind of work by the CBO and other bipartisian organizations which is needed for our representatives to make informed decisions when they vote on the budget – possibly not until well into the next fiscal year (after the 2010 election, I guess.) Obama and Nancy Pelosi will have to justify the budget to get it passed. They succeeded in passing the health care reform, even if most of who believe in single payer systems were not satisfied. The health care package is evaluated by the CBO to reduce the federal deficit by $142 billion over 10 years (see the CBO reference:http://cboblog.cbo.gov/?p=546 ).
We are not children, and we should not act like children when we want to convince people of our point of view. I agree with Christopher that we should stop spreading venom and unsubstantiated reports.
May 4th, 2010 at 8:45 pm
This is my first visit to this site, but it is really disappointing to see the venom in some of the responses. Postings should add insight and information to the discussion—not to berate or belittle. Jw
May 5th, 2010 at 5:14 pm
What if we had a real war with a real power like China or Russia?
Do we want to know how to and have the factors up and tooled to build tanks and other equipment or shall we outsource that to China too?
Yea, bailing out GM stinks, but it is in our long term interest to have the a vast manufacturing base.
May 5th, 2010 at 5:25 pm
Good point JohnW,
Insight is hard to find these days, and when its shown its labelled as propoganda. No one really searches for the truth these days, instead its a search for something that helps prop up their own beliefs and their own sense of self. This happens for all sides of the equation so lets be truthful that neither conservative nor liberal lack any guilt of self promoting ones beliefs and values at the expense of reality.
The problem is this, how do we fix the problems of now, if we step aside from whats already been done, how do we fix and look towards the future.
May 5th, 2010 at 6:12 pm
It’s no wonder why our country is in such turmoil- All we do is Blame, Blame, Blame- from the pea-ons to the poeple in power, all we do is complain and blame, never taking responsibilty for our own actions. Christopher was trying to make a point, but closed minded people only call names- who sounds like an idioy now-Duane? It’s not about being a Republican or democrat or being left or right wing- it’s about doing what is ethically right to succeed as a country, as a planet. I am so tired of everyone talking crap about the Obama administration- they took over one hell of a mess! Anyone with any knowlege of Economics should be smart enough to relaize our downfall came from many debacles and problems of this magnitude did not come from one administration, one person or one party. The largest reason for our countries downfall will be blamed on being seperated as a people, arguing over arguing, never looking at the bigger picture. All I see is negativity- No Ideas – what happened to our country’s ability to strive in the face of problems and overcome obstacles by coming together and making something of ourselves. Better yourself, yourlife everyday and eventually you will make it better, make someone else’s life better, make our country better and do it for our World. Wake up! Thanks for your time
May 6th, 2010 at 9:33 pm
After reading all the comments – I ended with a slight smile on my face and a nod to Miranda. Well said. Our problems, including societal and economic, transcend political affiliation, religious faith, red state/blue state, rich man/poor man – because we have had no one administration [or congress] get it completely right – and when mistakes are made, they usually wipe out all the “good” that happened.
We will succeed or fail as a country – and no one person should get ALL the blame or ALL the praise. If we survive all this mess with a total collapse, it will be because we [all of us] decided to get our collective heads out of the sand and start communicating.
What is happening right now reminds me of a scene from “Braveheart” where William Wallace and his lieutenants go to see the “Nobles”. Everything is going fine, William gets knighted, this Lieutenants get their praise – and then one of the nobles ask for his support for their clans claim to the “Thrown of Scotland” and everything just breaks down and William Wallace walks out.
That’s what is happening now – no matter who is in power, the other side is constantly pulling in the opposite direction. While our country and even the world is in dire need of leadership.
May 6th, 2010 at 11:10 pm
Miranda,
What are you wearing ?? You sound so smart!!
May 6th, 2010 at 11:13 pm
Pea-ons? You want peas on that? It’s peón or peon. Not pea-on LOL!
May 7th, 2010 at 11:46 am
I like one of the things I saw on CNN – a little insert entitled “Wing Nuts.” There is a very real problem in that too many of us (on both ends and me in the middle) don’t think or check lout real information.
We live in a sound-byte world…if it sounds good, vote for it. There is a corlllary in that real and accurate information is difficult to come by. Even when we try to undertand potential side effects of legislation, we have few trustworthy sources.
Personally, I questioned some of Bush’s decisions as I do some of Obama’s or….whoever, but there is a phrase my father (a career military officer) used a lot – “The Loyal Opposition.” Sometimes, without information, you have to trust democracy to work…it is cumbersome, irritating, and uncertain, but somehow when we give it time and work together, it seems to work pretty well.
On some of the post above, I was interested in the logic, but couldn’t get past the 2nd sentence. Looking for unbiased information, the opening lines negated that…no need to read on.
About American Manufacturing-American car co’s missed a bet…what if they had bonded together with a theme”-My baby is American made, her throttle don’t race and her brakes don’t fade. My baby’s made in USA, buy a Frod, a Doge,or Chevrolet.” One giant public awarenss campaign for buying American-would have made us older Americans proud.
I have 2 Toyotas-a Prius and a Tacoma, but the new Fords and Chevys look awfully nice…maybe next time!
May 7th, 2010 at 11:50 am
Ooops-excuse the spelling in my earlier note…I can spell-just don’t type…and that’s a new topic…I was taught “men don’t type-they will always have a woman to do that for them.” That, like many of the things I learned, was half right. ’nuff said!
May 7th, 2010 at 1:05 pm
And the conversation drop’s to a spelling test, oh well Christopher keep up the good work, this country sure could use some clowns now that the circus is in town.
May 7th, 2010 at 1:21 pm
America is not perfect. We are not always right. Sometimes, in fact, we are very wrong and make huge mistakes. And then we pay for them. However, there is a very bitter discourse going on in this country right now that does nothing to promote common consenus. All everybody wants to do is scream a everybody else. No one listens to opposing viewpoints to hash out the differences to arrive at a solution or determine goals for the future. It is either you’re a “right-wing, teabagging, conservative” or a “left-wing, liberal, extremist.” We’re all too quick to tag someone with a label. No one is saying President Obama has all the answers. But, neither did George Bush or Bill Clinton. We need to all understand that this country, along with every other country in,this world, is in a heck of a financial mess. And it was not just the Wall Street bankers who created this mess…we all had a hand in creating the crisis. We were all sprending more than we earned. Anyone who seriously thought the housing boom would continue forever was a fool. So…before any of us continue to place blame on others…we should all take a seriously long look in the mirror. Until each one of us starts to behave in a responsible manner in our personal lives…nothing will change.
May 7th, 2010 at 1:54 pm
Our nation is great because it has an iron clad foundation. We have survived civil war, horrendous leadership, scandal, upheavals of all matter… and yet, we always land on our feet. Currently, corporate America is enmeshed with political America to an unprecedented degree. Rent the DVD, “Who Killed the Electric Car?”, for a fascinating, if not deeply troubling, account of the dynamics among the muckety-mucks of (mostly) GM, various politicians, consumer groups and miscellaneous others. At the same time GM quietly cancelled the leases, called back, and crushed its entire fleet of immensely popular electric cars, they loudly promoted their Humvee line. God help us! What does that say about GM and what does that say about us as consumers?! How repentant is GM for creating the mess that led to its financial fall? It closed its Saturn division, for one thing…the one arm of GM that considered the environment, progressive labor concepts, new ideas in handling dealerships, etc. Aargh! Money is the bottom line and we have been bought. Until we the people find a way to yank corporate America’s tentacles out of the deepest innards of government, little will change…especially when so many of us profit from the success of corporate America.
May 7th, 2010 at 8:19 pm
Christopher, Just in case you were interested, a finance executive from GM, when asked whether or not GM repaid the loans from another govt account, replied something to the effect..”yes”. I don’t know about you but that is a pretty good indication they didn’t use profits to pay back the loans. That is the gripe with the ad campaign and bluster and fluff from the admin. Would I like GM to be profitable? Yes because it would help the economy. However, I do not wish my tax $ to be spent on artificially propping up failing companies because they supported the election of this Pres. They should have to succeed on their merit like any company. I will never buy from GM again or Chrysler. Ford would be okay since they did it the old fashioned way.
June 7th, 2010 at 1:16 pm
Doesn’t everyone ‘get it’ by now!? The Obama administration is CORRUPT! The latest lie from Obama’s Government Motors is merely another confirmation.