Posted on 04/28/2010 4:25:48 AM PDT by drbuzzard
It was with great fanfare yesterday that General Motors announced that it was repaying some $4.7 billion of $6.7 billion in loans it received from the federal government. And, with even bigger fanfare, it was announced that this partial repayment was being made some five years earlier than expected.
Welcome RedState readers. Stop by between 10 a.m. and noon ET for the big radio show. Check out the update at the bottom of this post.
Too good to be true? Well, it is.
What you weren’t told was that GM was able to repay the money by drawing down on a line of credit that it had from TARP! In other words, GM took funds still available to it through TARP and used those funds to repay the loan it received from the government. Of course, it now owes $4.7 billion on its line of credit with TARP, but, that doesn’t make for good news, so it wasn’t reported.
(Excerpt) Read more at radioviceonline.com ...
Truth in advertising problem?
GM is the best advertisement Ford has.
Buy Ford.
So dishonest.
Considering I drive a Caddy now, I will categorically state it is the last GM car I will ever own. Those slimeballs are well past my tolerance range. The bailout was bad enough, but then lying about paying it off? Good Lord.
I predict there will be one domestic car company left standing in a couple of years and with this stuff, good riddance.
Mr. niteowl77
But Wall Street repaid it, sure they did.
Pigs will fly before I buy a vehicle from GM or Chrysler.
Here’s Glenn’s excellent visual (from yesterday).
Fast forward to 7:35.
He who has lost honor can lose nothing more.
------Publilius Syrus
Your prediction has already come true. Ford is the last American car company. Most are Japanese, some are European and at least two are kenyan.
Could it be that the mountain of government bailout cash was overkill-----much more than necessary? That the repayment is nothing other than a political and marketing ploy whereby the government gets repaid with the very same money they handed out?
WE BETTER CALL THE COPS Over-lending on a loan to achieve quick initial repayment (and thus inflate the loan's perceived value), in the private sector, is called fraud.
COUPLE CLUES (1) GM unveils ads with walking CEO, seeking to re-engage disaffected Americans under the pretense of its supposedly paid-in-full-with-interest loan. (2) Ohaha Toadie Larry Summers is touting "success." (3) The Reserve Primary Fund's recent failure may just be a diversion and scapegoating in a broad "War on Wall Street" that Obama, Soros and FDIC's Sheila Bair, among others, are engaged in right now, to get complete control of our financial system.
BIG QUESTION---WHERE IS THE $52 BILLION PRINCIPAL? As stephenjohnbanker posted: ”GM got a total of $52 billion from the US government---$6.7 billion of that was a loan. GM merely paid back the INTEREST. What about the $52 billion PRINCIPAL?
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Americans have yet to learn the full extent of official corruption, thievery, schemes and scams involving $TRILLIONS of tax dollars aided and abetted by the dupes on Capitol Hill.
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THE WHIFF OF MADOFF J, Ezra Merkin---ousted head of GMAC (GenMotors financing arm)---got a $6 Billion taxpayer bailout---and was also feeding hundreds of millions to jailed money launderer Bernie Madoff from Merkin's four offshore investment vehicles.
BAILOUT SWILLERS Stephen A. Fineberg's private equity firm---Cerberus Capital Management LP--- owns Chrysler Motors. The US Treasury bought a $5 billion stake in GMAC (GM's financing arm), and lent $1 billion to GM. This latest loan is IN ADDITION to the $13.4 billion the US Treasury lent earlier to Merkin's GMAC, and Fineberg's Chrysler.
SWILLING TIMELINE In 2006, GM sold 51% of Merkin's GMAC to Feinberg's private equity firm Cerberus Capital Management LP (which also owns Chrysler).
HOGGING AT THE PUBLIC TROUGH In May 2004, Feinberg's "private investment group," Cerberus Capital Management, LP became majority owner of IAP Worldwide Services, Inc, one of the US Army’s largest contractors in Iraq. In Afghanistan, Feinberg's IAP runs a drug/addiction center" in Kunduz---Kunduz is the largest opium supplier in the world. BUSY LITTLE BEAVER IAP also provides infrastructure support for the British Ministry of Defence in Kandahar....apart from supporting the US Army in Basra.
BAILED OUT AND STILL SWILLING Stephen A. Feinberg's IAP also serves a broad array of federal clients including the US DOD, NASA, the US Geological Survey, the US Agency for International Development, the IRS, and a variety of other federal agencies.
BACKSTORY GMAC's Merkin and Chrysler's Feinberg paid the Israeli govt $500M to buy Bank Leumi. An “inside” deal not just anybody could get. Bank Leumi looms large in the missing billion dollar bailouts since Israel is the only place in the world where an individual can fly-in, go to a bank with a suitcase full of cash, and nobody asks where they got it, or whether taxes were paid on it.
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REFERENCE --- AUGUST 2009 Taxpayers Face Heavy Losses on Auto Bailout. A Congressional Oversight Panel recommends the Treasury Dept perform a legal analysis for providing TARP funds to (1) GM, (2) Chrysler Motors, (3) GMAC, their financing arm.Treasury Dept officials have acknowledged that most of the $23 billion TARP provided by the Bush administration is likely to be lost. Bush should have refused to do it (there was $15B fund already appropriated and committed but unspent - for "greening" of the auto industry - that should have been used) and could help convince the management of both companies to file for prepackaged bankruptcy, which would allow both companies (and maybe Ford, as well) to restructure their debts and union and pension contracts, reorganize and emerge far stronger, without taxpayers losing a dime. Now he is (rightly) being blamed by media and Democrats, who at the time demanded the auto companies bailout, for wasting taxpayers money.............The report also recommends the department perform a legal analysis of its decision to provide TARP funds to GM and Chrysler, their financing arms and many auto parts suppliers. Some critics say the law creating TARP didn't allow for such funding.
DID YOU KNOW? TARP was not designed to be a pool of money available for bailout of just anything that didn't move, like a couple of bankrupt unionized companies in the automobile industry. TARP was very specific in its purpose to provide liquidity to frozen banking and financial system and stave off the run on the banks (attack on the financial system, by proxy) and allow the 'netting' of the [frozen] assets on the books of financial institutions, in the aftermath of fall of Lehman Bros and run on trillions of dollars in the money market funds in the consequent "breaking the buck" by Reserve Primary Fund managed by Bruce Bent.
(REFERENCE The father of the money market mutual fund -- investor Bruce Bent -- was charged with fraud by US regulators over accusations he deceived investors into believing his flagship fund was safe before it "broke the buck" last year. The civil charges against the veteran money manager, his son and their investment company come eight months after the Reserve Primary Fund, loaded with Lehman Brothers debt, halted redemptions after the investment bank declared bankruptcy, sparking a run on money-market funds. The fund's net asset value fell below $1 after Lehman's bankruptcy last September, meaning that investors who thought their funds were safe had lost money. The fund is being liquidated and its collapse has spurred numerous lawsuits. Its demise has been a stunning turn for Bent, who regulators called "the public face" of the fund and "a longtime advocate of the safety and stability of money market funds." The Reserve Primary Fund's failure has been a tragedy for investors and the Bents, said Peter Crane, president of Crane Data and publisher of Money Fund Intelligence. (Excerpt) Read more at reuters.com )
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NOTE WELL In addition to his role as White House Chief of Staff, Emanuel is heavily involved in decisions made by the US Treasury.
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Behind The Real Size of the Wall Street Bailout (magazine details $14 trillion bailout)
Mother Jones | Dec. 21, 2009 / FR Posted Jan 04, 2010 by E. Pluribus Unum
A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street.
The price tag for the Wall Street bailout is often put at $700 billion—the size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart here. Below, a guide to the pieces of the puzzle:
Treasury Department bailout programs (controlled by Rahm Emanuel)
Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid. Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets." GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].
--SNIP--- long read
Federal Reserve bailout programs
Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.
Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.
Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.
Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.
--SNIP--- long read
I predict there will be one domestic car company left standing in a couple of years
At the rate Washington is going, I would have to argue that comment. If I were a betting man, I would have to put my money on more lies and GM being the last one standing.
More power to Ford and Toyota, if they can overcome too big to fail, because I’m betting Ford and Toyota, would be considered just on the small side of too big to fail if it comes to that.
I believe Rush just the other day, in explanation for the “loan repayment” made the case for partial repayment via layoffs, and the corresponding cuts in wages at Government Motors that allowed them to add this to the lies and deception that continually pours out of the Washington cesspool.
Another revelation via Washington lies, was the Glenn Beck Revelation about how many people in the Obama administration are in the tank for cap and trade legislation via their personal investment in the business of cap and trade, to include the President.
Thank God for Beck's courage.
There might be a real difference here:
GM repaid an actual government loan by taking out another loan, NOT from the government but guaranteed by the government.
So it wasn’t “government” funds they borrowed, but presumably from some commercial source?
Not defending Government Motors, just asking.
Ed Whitaker is a FRAUD!!!!!
What’s distressing is that a lot of people will see the commercial and believe what he said simply because he looks like such a nice, sincere man and what he said was such a wonderful thing.
In other words, Obama voters.
>GM repaid an actual government loan by taking out another loan, NOT from the government but guaranteed by the government.
No, they didn’t take out a private loan to pay off the government money. They merely moved money from one government supplied pot to another. Their commercial is a lie, plain and simple.
I would like to hear Dave Ramsey comment on the GM payoff.
By the way I just paid off all my debts - I put everything on a New Crdeit Card!! My Mother would be soooooo proud.
He even brought down a few whitehouse staffers (van jones, anita dunn, etc.) with his shows. When he isn’t crying or screaming he is ok.
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