Government Motors: As GM Shares Near Record Low, Taxpayer Loss Now $35 Billion...

Discussion in 'Politics' started by paulitician, Jul 3, 2012.

  1. paulitician
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    paulitician Platinum Member Supporting Member

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    Despite spending several $Millions on propaganda campaigns telling us how well GM is doing, this is the sad reality. It's time to close the book on Corporate Welfare once and for all.


    General Motors(GM) shares fell to a fresh 2012 closing low of 19.57 on Monday. The stock hit 19 in mid-December, the lowest since the auto giant came public at $33 in November 2010 following its June 2009 bankruptcy.

    Normally you might say, tough luck investors. But this is Government Motors. The Treasury still owns 26.5% of GM, or 500 million shares. Taxpayers are still out $26.4 billion in direct aid. Shares would have to hit $53 for the government to break even. Those shares were worth about $9.8 billion as of Monday. That would leave taxpayers with a loss of $16.6 billion.

    But that's not the full tally. Obama let GM keep $45 billion in past losses to offset future profits. Those are usually wiped out or slashed, along with debts, in bankruptcy. But the administration essentially gifted $45 billion in write-offs (book value $18 billion) to GM. So when GM earned a $7.6 billion profit in 2011 (more on that below), it paid no taxes.

    Include that $18 billion gift, and taxpayers' true loss climbs to nearly $35 billion.

    Of course, there's no chance that the Obama administration will sell off its GM stake before Election Day. That would force Obama to recognize actual losses, which would remind voters that the bailout was a massive transfer from taxpayers to unions...

    Read More:
    General Motors Stock At 2012 Low, Lifting Loss Taxpayer Losses To Nearly $35 Billion by Andrew Malcolm - Investors.com
    DRUDGE REPORT 2012®
     
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  2. Stephanie
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    Stephanie Diamond Member Supporting Member

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    Remember, Obama saved the AUTO INDUSTRY

    :eusa_liar:
     
  3. Charles_Main
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    Charles_Main AR15 Owner

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    But Obama Saved the Auto Industry, Everything was suppose to be great now right?


    When will liberals ever learn that throwing money at a problem does not fix the problem.
     
  4. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Now that the American Public have eaten the losses I guess it's time for GM to move the production lines over seas.

    Oh wait, they're already doing that.
     
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  5. WillowTree
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    WillowTree Diamond Member

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    he gave em waivers on his obamatax too.:d
     
  6. blastoff
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    blastoff Undocumented Reg. User

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    Oh, what b.s. I guarantee you if Gov't Motors offered buyers $75,000.00 rebates on the purchase of $40,000.00 Chevy Volts those babies would fly off the showroom floors. How they'd handle future recalls though is anyone's guess.
     
  7. Charles_Main
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    Charles_Main AR15 Owner

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    yeah sure they would fly off the problem, but how would that fix the problem? lol
     
  8. Sinjorri
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    Sinjorri Senior Member

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    GMs future is so bright Obama got shades!!!!!!!
     
  9. DiamondDave
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    DiamondDave Army Vet

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    But.. But.. But.. TDM says we MADE money... we SAVED the industry.. they are BETTER than ever before :rolleyes:
     
  10. CrusaderFrank
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    CrusaderFrank Diamond Member

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    I'd short GM but you never know when Obama will decide to throw another $30 Billion of our tax dollar to save the UAW.

    70,000 current employees have to pay for 700,000 retirees. There's no way the company makes a profit, its an accounting fiction.

    Their pension liability is equal to more than 100% of every cent the company ever made since inception.

    Next time, let the fucking company go bankrupt for real
     

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