Discussion in 'Economy' started by JBeukema, Apr 28, 2010.
PolitiFact | CEO says GM has repaid government loans in full
If this whole "running an auto company" thingy doesn't work out, he could work for Goldman Sachs
When you pay the US Government back the money they loaned to you with money they gave to you for potentially worthless stock, have you actually paid back the loan, or is it still a loan hidden behind a guise?
It's like paying off a credit card with cash advances from another credit card.
But wait! There's more!
The stock is obviously not "potentially worthless", when GM sales are making a rebound, and GM has cut costs to the point where they did not need to use the money's invested in buying their stock to use in costs other than paying back the loan.
The point is that the American taxpayer now has no money invested that GM can just default on at some point through bankruptcy.
The American taxpayer now simply owns a good portion of GM, until private investors choose to buy them out again at some point in the future.
So, in fact, the taxpayer stands to make a profit in the end, like they did with the banks (Sans Fannie, Freddie and AIG of course, at least so far.).
I believe him. I just recently bought a 2010 Chevy Avalanche LTZ and it cost me $53,900. I got a little off for paying cash but not much. I figure I helped them repay the loan...
So, when is my dividend check going to show up in the mail?
The recent ads by GM touting this repayment are highly misleading - and could be interpreted as fraudulent. GM is a public company. Official communications from the company which mislead investors are a violation of SEC regs.
The timing of the ads are highly suspicious. It's very plausible that GM was pressured by its largest shareholder (the U.S. government) to run these ads while financial reform is being debated. An investigation is in order.
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