GM Lies About Paying Back "Loan"!
WTF?!?!?! WTF?!?!?! WTF?!?!?!
GM is putting out commercials and press releases about paying back their "loan" from the US Tax Payer. The only thing is they are full of lies!
GM gets the vast majority of their BAIL OUT converted into an "investment" by the government (a.k.a. The US Tax Payer) and then uses that money to pay off the remaining loan portion.
The US Tax Payer just got "paid back" with their own money! And the vast majority of the bail out got converted into an "investment" so they DON'T HAVE PAY IT BACK!!!
And these rich fat cats complain social programs?!?! What the hell are these corporations getting? Free Tax Payer money and they barely pay any taxes!!!
WTF?!?!?! WTF?!?!?! WTF?!?!?!
Buck my Sutt!
April 21st, 2010 11:21pm
If you're an existing GM stockholder -- congratulations. Your shares just got diluted.
April 21st, 2010 11:22pm
I heard about this earlier today. GM is just getting worse and wose. Why would I want to buy a GM car now? You can't trust them! They rip off and lie to the people handing them free money.
Just say NO to GM!
April 21st, 2010 11:29pm
"GM gets the vast majority of their BAIL OUT converted into an "investment" by the government (a.k.a. The US Tax Payer) and then uses that money to pay off the remaining loan portion."
Fuck, really? This "has paid back" story is all over the news this week.
April 22nd, 2010 12:20am
>If you're an existing GM stockholder -- congratulations. Your shares just got diluted.
Just? When GM went bankrupt the shareholders basically got nothing. Right now the overwhelming bulk of GM shares are owned by the US and Canadian governments, and the union. 10% went to the "old" GM corporation.
The TARP loans were, I believe, for GMACs to cover the same sort of financial games as the banks. Those loans just got repaid.
The government also paid tens of billions in return for an equity stake. Whether that will "pay off" remains to be seen, but note that many are rightly pessimistic, but by current valuations the governments will recoup a large portion of their "investment".
April 22nd, 2010 12:30am
OK here is the first article that is the source of all this.
"GM expected to repay fed loans Wednesday"
GM got a $50 billion loan. $43 billion of that was forgiven in return for 61 percent equity - a majority ownership share.
They previously paid $2 billion of the $6.7 billion in U.S. loans, and about $400 million of $1.4 billion in Canadian government loans.
It now owes $5.8 billion to both countries and is going to pay that part "under an agreement with the Treasury Department by tapping unused Treasury funds that are being held in escrow".
So, they borrowed $50 billion, $43 billion was forgiven, $2 billion was paid, and the remaining $5.8 billion is being paid WITH WHAT IS LEFT OF THE ORIGINAL $50 BILLION LOAN.
Presenting this as "GM has paid back all that it borrowed from taxpayers" is total bullshit.
April 22nd, 2010 12:31am
A: "I really need $100 now. Things are bad."
B: "Okay...but...in return I want your bicycle. Then you only owe me $20."
A: "Okay great. Wire me $80 now and I'll call when I need the rest."
B: "Hey, where's my $20!"
A: "You still have it. Pay yourself."
This isn't nearly as shocking as its held to be. The simple fact that the allotted money wasn't used by GM is because GM turned around enough to not need it. How it is viewed as some special pile of money is weird.
April 22nd, 2010 12:40am
GM is running ads on TV about how great they are, because they have paid back ALL of their "loan".
All I can say is, nice job GM...nice...
April 22nd, 2010 12:45am
>If you're an existing GM stockholder
There are none outside of the US Government.
>When GM went bankrupt the shareholders basically got nothing.
ALL old shares of GM were converted to MTLQQ shares back in July 2009. All the "bad" assets were left in "motors liquidation corp" which was the "old GM." The "new GM" has not gone public yet - so you cannot own any. The price has been drifting downwards because only defective assets were left in the old company - and there is nothing for shareholders.
April 22nd, 2010 3:11am
Paying back loans is entirely for good press.
GM is still losing money. At the current rate, it will need another around of bailout in 5 years.
The current plan is to wash off balance sheet clean. Previous bond holders got very little back when they are forced to accept 10% equity for the debt. Now after washing the balance sheet, GM can ask banks to loan billions again.
Then GM is going to IPO so that institutions and government can unload their stocks.
If the IPO goes well, the government can get something back.
Then GM can ask for another round of bailout. Force bond holders to convert the debt, and threat to layoff all workers if money is not given.
April 22nd, 2010 7:55am
>There are none outside of the US Government.
Not quite that simple-
-United States Department of the Treasury (61%)
-United Auto Workers Union Voluntary Employee Beneficiary Association (17.5%)
-Canada Development Investment Corporation (7.9%)
-Government of Ontario[clarification needed] (3.8%)
-Bond holders of Motors Liquidation Company (9.8%)
The last one is the old GM, which now owns 10% of the new GM.
April 22nd, 2010 8:39am
Come on people, give them a break. Technically is wasn't a lie. They are running those ads because they desperatly need to shed the bailout stigma. Sure, before the collapse they were in extremely rough shape, hence the bankrupcy. Now they truely can be a competive company, for AMERICA.
April 22nd, 2010 8:57am
The CEO can't get any bonuses until the "loan" is paid back. Unlike the banks, who could take the government bailout money and hand it straight out as bonuses, neither GM nor Chrysler were allowed to give bonuses to the top layers of mismanagement until the loans were repaid.
>At the current rate, it will need another around of bailout in 5 years.
It is possible that the Democrats could lose the White House in 2012. If that happens, no Republican administration would be willing to bail out GM at all. No price would be too hight to pay to destroy the UAW.
April 22nd, 2010 9:23am
Ohhhh. It's BONUSES they're after.
I suspected it had to be something like that.
April 22nd, 2010 9:40am
Wasn't it the Republicans who did TARP in the first place?
April 22nd, 2010 9:40am
I mean, don't get me wrong, TARP was absolutely necessary to prevent a Hoover-era Depression, so it was extremely well done.
It's just that Bush and co. had to leave their treasured dogma in the dust and become completely pragmatic for a year or so to save the economy from their earlier dogmatic "the free market will regulate itself" position. Quite a departure for them.
Perhaps you're right -- such a departure from dogma seems unlikely a second time.
April 22nd, 2010 9:42am
"I mean, don't get me wrong, TARP was absolutely necessary to prevent a Hoover-era Depression, so it was extremely well done."
Except the TARP money didn't actually go to purchase trouble assets, like, you know, the letters stood for.
April 22nd, 2010 1:00pm
let me get this correct: USA buys 61% of GM but which GM? There is no way of knowing UNLESS F.O.I. Act IS OPENED to include ALL of GM - the world BIGGEST producer of global MILITARY VEHICLES but where are they produced?
The price of GE in now "X" when the USA sells its shares of capital investrment @ "X" x 10 = "10-X" Capitalism as it was meant to and should be SO THAT EMPLOYMENT abounds (MAYBE) depending on where these merchines are being manufactured!
The MAJOR maufacturers of nazi Germany were: GM, GE, FORD, IBM, EXXON (JP Morgan - John D Rockefeller) the SAME 2 THAT TOOK OVER THE PAPACY IN 1872 as King Emanuel of Italy CONFISCATED the vatican & all its lands. It was NOT until 1933 when Musolini GAVE the Vatican 10 acres in which to establish itself as a City State with all the attributes of being a "country" with no responsibilities as the whol-e corporate "person" with no physical body! And, the vatican started having Ambassadors to ALL of it's Republics and ALL the Empire-Republics have Ambassadors to the Vatican ICLUDING the U.N.
April 26th, 2010 12:36pm
Market manipulation. Where's the SEC?
April 26th, 2010 4:22pm
you have to admit..the new camaro is pretty awesome...
April 26th, 2010 4:56pm
Just a note - Whitaker, the new CEO does not get a bonus or a paycheck. He took the job out of patriotism. He is also a very staunch Republican so not likely to do any favors for the existing POTUS.
April 26th, 2010 5:07pm
you phucktards just don't get it. Just like the jewish bankers who received billions of $$, and right before the market collapsed (over-collapsed really), and then bought the shit out of the market when everyone was libid with fear. The whole goddamn thing is a ruse. GM is in on the game as well. They have gamed the stock market to make up their losses. Why increase taxes when GS and friends can rigged the markets and make billions to recoup losses and repay TARP. That is what has happened, and continues to happen. GM was privy to this secret insider game along with the other controlling jews that run Obama and our country.
So, now we are creating another huge asset bubble thanks to the likes of Obama and his jewish economic advisors. You thought we were screwed back then, just wait until 2011. You ain't seen shit yet. I would advise that you remember these wonderful bankers and all they have contributed to this mess. Why? Because we all will be camping out in their yard waiting for our money and, when we get hungry, to eat their pets....lol.
eat the rich.
April 26th, 2010 10:09pm
This reminds me of an old children's joke from the fifties:
I need to borrow $10. But only give me $5 of it now. Then you'll owe me $5 and I'll owe you $5 and we'll be even.
At least this is a less trecherous way of cheating someone.
April 27th, 2010 5:27pm
Sounds like GM is an arm of the Federal Reserve!
April 27th, 2010 9:17pm