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Canuck_2
Veteran Advisor

Government Motors

Heard lots of opinions about the government 'bail out' of GM in the past so what say you now?

A total of 478 million shares were listed in New York and Toronto after the governments of the United States, Canada and Ontario sold part of their stakes.

"American taxpayers are now in a position to [receive] more than my administration invested in GM and that's a very good thing," U.S. President Barack Obama said after markets closed.

"Obviously we've still got a very long road ahead and a lot of work to do … but we are finally beginning to see some of these tough decisions that we made in the midst of the crisis start to pay off," he said.



Read more: http://www.cbc.ca/money/story/2010/11/18/gm-ipo-tsc.html#ixzz15gRhgCKq

18 Replies
GoredHusker
Senior Contributor

Re: Government Motors

In a position and actually receiving is the difference between night and day.  Last I saw a week or so ago was the fact that the U.S. taxpayer has received around 20% of the money back.  Even the CEO of GM said it would take years to pay back the American taxpayer.  It is very interesting that Obama is taking credit for all of this even though his predecessor was the one that got the ball rolling.  This reminds me of a time a couple of decades ago with regards to Chrysler.  They paid back only to have to be bailed out once again.  Who will bail you out if your farm fails?  The lesson learned here is  grow as big as you possibly can.  Therefore, you'll get too big to fail.  Once a company/individual gets a bailout, the more palatable it is the next time around.   

Canuck_2
Veteran Advisor

Re: Government Motors

But do you not think Obama should take the credit since he was the one people 'blamed' when they spent money to bail out GM.

Too many want to lay blame on one president when it suits them but then switch the credit to the other when things look better.

If he got the blame then give him the credit!

kraft-t
Senior Advisor

Re: Government Motors

Canuck..I apologize for starting a new thread on this topic. Your thread was adequate and if I had noticed it I wouldn't have started a competing thread about the same subject.

Canuck_2
Veteran Advisor

Re: Government Motors

No need to apologize. It was a good topic to bring up for discussion since so many want to lay 'blame' for decisions and criticize but then ignore it when their criticism turns out wrong.

4wd
Senior Contributor

Re: A Lie by our president

Quote:

""American taxpayers are now in a position to [receive] more than my administration invested in GM and that's a very good thing," U.S. President Barack Obama "

 

``That is a bold faced lie. We only got back 20% of what we the taxpayers paid that company. Who knows when we will get the remaining 80%. Why anyone would pay more than a penney for this stock is proof positive mass media advertising and promoting a lie works in this country. Especially when they get the president to bloviate crapola about what a good investment it is......

 

Has anyone read what the terms on the GM bailout was? How many years? What are the annual payments due? Interest rate?

4wd
Senior Contributor

Re: You guys have short memories

Remember the last billion dollar so called GM payback to the US treasury and Canada? They simply shuffeled some extra emergency TARP money from their emergency account to the bailout account, then announcing a big payback, when in actuality they simply shuffeled borrowed money rather than hard cash earnings on sales.

How much of this payment is also borrowed money from the TARP?

http://michiganmessenger.com/37170/gm-paid-back-government-loan-with-government-money

tomtoolbag
Veteran Advisor

Re: You guys have short memories

  LOL, I wondered if anybody would remember that. That "payback" has both good and bad implications. While it's reassuring that they didn't actually need all that bailout cash, and that they indeed did pay back some of their debt, essentially returning part of the principle amount, it's far easier to absorb the minimal lost interest than the principal. It also tells us that the government just threw a huge chunk of cash at them without fully justifying the need for it. The remaining shares that the government owns won't be totally sold off until next year. When it's all said and done, hopefully it's just even money.

  The past Chrysler bailout took about 4 years and the government netted $350 million. I don't see the GM portion of the bailout returning that much or the total including Chrysler. They have overcome their sales problem and are posting good sales numbers, it was just the debt that was killing both of them. Either way, they're still located here(for now), and up and running.

schnurrbart
Veteran Advisor

Re: Government Motors

To hear it on here, bush NEVER had a thing to do with TARP or bailouts.  Most knew better but no one would ever admit it.

Milligan Hay - Iowa d:^)
Veteran Advisor

Re: obama? bush?

Are you saying that there is a "spit's" worth of difference in how they looked at the size, scope, and largess of a Centralized Government????  Surely you jest....they and one and the same. I am not sure why you are not a fan of the former president, he spends just like the present führer-in-chief.