GM Loan

migtig

migtig

aka Mrs. Giant
So I rarely watch commericals anymore thanks to TiVo, but I happened to watch one over the weekend that made me do a doubletake.

GM is now running a commercial stating that they have paid back their loan from the feds with interest five years ahead of schedule.

So I do a few internet searches, and sure enough, they have.

Now, this bothers me on a lot of levels, and I am hoping someone much more savvy than myself can explain
1) doesn't this repayment indicate that they didn't need the loan?
2) if so, why did they ask for and receive this loan?
3) and where is that loan repayment with interest going?
4) Will that money go towards paying down the debt we have incurred due to the bailout?
5) Or is the money going to go out as new "loan" money?
6) Or better yet...is it just going to disappear?
7) and are we (as in the idiots who loaned this money to begin with) going to rethink our "loan" policies?

I don't know, but the whole thing smells bad to me.

*Update* Now there is a report that states that they paid back the loan with loan money....:confused: How the heck did that happen?
 
GWguy

GWguy

*
I too find it interesting that they (and the other car companies) were able to go from being flat broke and needed assistance to billion $$ profits in less than a year. Creative investing??

And the money that was returned does have a place to go, can't remember what it was tagged for.
 
Aerogal

Aerogal

USMC 1983-1995
NO! they didn't. I have the email at home (I'll try to find it and repost later) - they're using additional funds from another part of the bailout to cover the debt.
Smoke and mirrors:bs:
 
Tilted

Tilted

..
That commercial is disingenious at best - and it's an insult to the intelligence of the people it is trying to appeal to.

First, they've only repaid a small portion of the 'loans'. The vast majority of the monies loaned was converted into equity in GM - we won't get that money back until GM goes public again, so to speak, and issues new stock (if we do get it all back). GM still 'owes' taxpayers in the ballpark of $50 Billion.

I don't have much time to go into detail right now, but I'll try to do so later to answer some of the questions you pose. That said, it depends on how you look at it as to whether or not they 'needed' a loan. They did, but as it turned out, the way it was used didn't really change what ended up happening - they still used bankruptcy to scrub off SOME of their debt. Make no mistake, the primary beneficiaries of the loans were UAW members and retirees. The loan didn't really do 'GM' (i.e. the owners of the business) much good (and it shouldn't have). Nor is it likely that it allowed GM to remain in existence, as it likely would have done that anyway.
 
ImnoMensa

ImnoMensa

New Member
From what I read they took part of the aid money and put it aay and then used it to pay back part of the loan. Nothing more than a scam.
 
Larry Gude

Larry Gude

Strung Out
ImnoMensa said:
From what I read they took part of the aid money and put it aay and then used it to pay back part of the loan. Nothing more than a scam.
Click to expand...

You can thank your boy Dubbya for this. The car people were on the verge of doing what HAD to be done; tearing up their labor contracts and getting something workable. But, noooooooooo. Mr. Free Market come a ridin' over the hill with trunks full of compassionate conservative money.

What a slap in the face to FORD, who made the hard choices BEFORE begging to become wards of the state and to the American people, as a whole.

:buddies:
 
ImnoMensa

ImnoMensa

New Member
Larry Gude said:
You can thank your boy Dubbya for this. The car people were on the verge of doing what HAD to be done; tearing up their labor contracts and getting something workable. But, noooooooooo. Mr. Free Market come a ridin' over the hill with trunks full of compassionate conservative money.

What a slap in the face to FORD, who made the hard choices BEFORE begging to become wards of the state and to the American people, as a whole.

:buddies:
Click to expand...

Conservative Blog: Obama Bails Out GM with Our Tax Dollars, Who Will Bailout America? : THE CONSERVATIVE POST
 
Aerogal

Aerogal

USMC 1983-1995
First, they've only repaid a small portion of the 'loans'. The vast majority of the monies loaned was converted into equity in GM - we won't get that money back until GM goes public again, so to speak, and issues new stock (if we do get it all back). GM still 'owes' taxpayers in the ballpark of $50 Billion.
Click to expand...

:yeahthat:
That's the gist of what the email said but I must've read and dumped it. I'm so tired of these shell games and bs being put out.
 
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