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GM Repays Government Debt; Was The Bailout A Success? (Bailout an Epic Failure)
Mish's Global Economic Trend Analysis ^ | 4/22/2010 | Mike Shedlock

Posted on 04/22/2010 12:02:38 PM PDT by 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.

(Excerpt) Read more at globaleconomicanalysis.blogspot.com ...


TOPICS: Business/Economy; Government
KEYWORDS: cultureofcorruption; fascism; generalmotors; gm; gmbailout; governmentmotors; govtmotors; marxism; obama; socialism; unions
And guess what? Taxpayers are on the hook for the $27 billion in unfunded UAW pensions!
1 posted on 04/22/2010 12:02:39 PM PDT by mojito
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To: mojito
and the government still owns equity.

Yes, quite a coup for socialism.

2 posted on 04/22/2010 12:03:19 PM PDT by the invisib1e hand (John Paulson is the new Michael Milken?)
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To: mojito

The government paid itself back. What a farce.


3 posted on 04/22/2010 12:04:07 PM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: mojito
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.

4 posted on 04/22/2010 12:04:10 PM PDT by the invisib1e hand (John Paulson is the new Michael Milken?)
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To: Man50D

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.


5 posted on 04/22/2010 12:05:39 PM PDT by a fool in paradise (We've gone from phony soldiers to phony conservative protesters. Nothing about liberalism is genuine)
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To: mojito

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

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


6 posted on 04/22/2010 12:08:11 PM PDT by SJSAMPLE
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To: the invisib1e hand
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?
7 posted on 04/22/2010 12:10:28 PM PDT by 2001convSVT ("Hand out pocket Constitutions to everyone you can")
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To: 2001convSVT

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


8 posted on 04/22/2010 12:16:17 PM PDT by mrmeyer ("When brute force is on the march, compromise is the red carpet." Ayn Rand)
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To: mojito

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.


9 posted on 04/22/2010 12:16:53 PM PDT by jerri (Is it over yet?)
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To: mojito
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.

10 posted on 04/22/2010 12:27:34 PM PDT by pyx (Rule#1.The LEFT lies.Rule#2.See Rule#1. IF THE LEFT CONTROLS THE LANGUAGE, IT CONTROLS THE ARGUMENT.)
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To: mojito

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


11 posted on 04/22/2010 12:32:01 PM PDT by LibLieSlayer ( WOLVERINES!)
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To: the invisib1e hand

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


12 posted on 04/22/2010 12:51:00 PM PDT by Roklok
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To: Roklok
Chevies are crap

I beg to differ...


13 posted on 04/23/2010 7:24:50 AM PDT by the invisib1e hand (John Paulson is the new Michael Milken?)
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