GM Repays Government Debt; Was The Bailout A Success? (Bailout an Epic Failure)

Mish's Global Economic Trend Analysis ^ | 4/22/2010 | Mike Shedlock

[mojito]

GM Summary:

GM is still Government Motors.

The US Government converted $45.3 billion in loans to a 70% ownership position.

The Canadian Government converted an $8.1 billion stake into 12% ownership.

GM lost $3.4 billion in the 4th quarter of 2009.

GM still has $15 billion in debt.

GM has $27 billion in unfunded pension liabilities.

Until GM IPOs we will not know an approximation of taxpayer losses. Moreover, those losses do not include the pension time bomb.

With GM still losing money on top of all those issues why did GM repay TARP? The likely answer is to get out from under TARP restrictions on CEO and executive pay.

[mojito]

And guess what? Taxpayers are on the hook for the $27 billion in unfunded UAW pensions!

[the invisib1e hand]

and the government still owns equity.

Yes, quite a coup for socialism.

[Man50D]

The government paid itself back. What a farce.

[the invisib1e hand]

The US Government converted $45.3 billion in loans to a 70% ownership position.

Holy Sh9t. We are a full-blown socialist republic. Overnight. Just like that. A-freaking-mazing.

Puke.

[a fool in paradise]

Reportedly fired 65,000 workers too. What a way to balance their budget. Let’s try that across the board with government, shall we? And no pension buyouts. Termination without benefits.

[SJSAMPLE]

Don’t forget the royal rogering that GM bondholders got.

33% return on SECURED debt.
UAW got 55% on unsecured debt.

[2001convSVT]

You have that right, and I will not buy another GM product. In a few years I wonder if the US government may make it mandatory that all citizens buy a GM?

[mrmeyer]

They might just get away with that if they can force people to buy government backed health insurance.

[jerri]

The bail out was done to protect the union. That’s the only reasonable answer I can come up with. Otherwise why would the government get involved and then force them into bankruptcy anyway.

[pyx]

As of yesterday 10:00 AM EST Government Motors (GM) had repayed $8.0 Billion dollars of the bailout money. To re-pay this money, GM had to eliminate 65,000 jobs. GM still owed $51.5 Billion dollars. I am cynical and not at all confident that GM has indeed put together $51.5 Billion dollars and repaid all of the outstanding debt between yesterday and the time today this article was posted.

[LibLieSlayer]

gm STILL OWES THE US AND CANADA 57.4 BILLION DOLLARS... THEY EARNED NOTHING BUT GOT THIS MONEY FROM FIRING 65,000 UNION MEMBERS AND SEIZING THEIR RETIREMENT BENEFITS... AS PER RUSH! LIES ALL!

LLS

[Roklok]

All I want GM to do is bring back the Pontiacs. Chevies are crap and Buicks and Cadillacs are for old farts.

[the invisib1e hand]

Chevies are crap

I beg to differ...