Lets look at how GM is really doing. Another Liberal myth

Discussion in 'Economy' started by JRK, Apr 21, 2012.

  1. JRK
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    JRK Senior Member

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    I have had mixed emotions with this bailout. I allways felt GM should have sold there products to make profit, simply put at a cost to pay the legacy cost the UAW demanded to fund htere demands and make profit

    Simply put they still owes us billions. GM going chapter 7 would have not caused any job loss as Ford, Tuota, Honda etc... would have picked up the slack and would have replaced those jobs lost

    Some would have been new non union jobs with expansion to boot in the south. makes one wonder what we did wrong to not deserve that opportunity

    Bailout List: Banks, Auto Companies, and More | Eye on the Bailout | ProPublica

    Well there you have it, another liberal myth exposed
     
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  2. Truthmatters
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    do you understand anything about investing?


    Those numbers are very good return on that money
     
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  3. PoliticalChic
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    PoliticalChic Diamond Member

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    Interesting data, especially from this source: Pro Publica is way Left-wing.



    1. So…who is ProPublica? The best comparison would be to say that NBC just agreed to take its news from the old Pravda.

    a. ProPublica began funded by a billionaire husband and wife team who not only spent millions campaigning for President Obama but also topped donor lists to groups like ACORN and MoveOn.org. On its website, Pro Publica describes itself as championing the values of the “weak” against the “strong.”

    b. The $10 million yearly grant from Herbert and Marion Sandler, the former chief executives of the Golden West Financial Corporation, which was one of the nation’s largest mortgage lenders and savings and loans. Just before the financial crisis, the Sandlers in 2008 sold their business to the Wachovia Corporation for about $26 billion. The Sandlers are major donors to the Democratic Party and are top funders of ACORN, MoveOn.org, the American Civil Liberties Union and other far-leftist groups like Human Rights Watch.
    NBC newsroom gets fresh leftist invasion. Network teams up with


    2. Still not convinced about the control of the media? Perhaps these Leftists simply want to invest in excellence in journalism? Think again. This from the Left-leaning Slate:Slate journalist Jack Shafer raised questions [http://www.slate.com/articles/news_a...ler_want.html] about Pro Publica's ability to provide independent nonpartisan journalism given the nature of Sandler's other political donations which include "giving hundreds of thousands of dollars to Democratic Party campaigns." The concern was borne out in a vicious December 2008 attack on natural gas drilling that followed the Democrat no-American-energy agenda. Pro Publica

    3. From the Capital Research Center: ProPublica “churns out little more than left-wing hit pieces about Sarah Palin and blames the U.S. government for giving out too little foreign aid.” http://www.capitalresearch.org/pubs/pdf/v1241117859.pdf
     
  4. Truthmatters
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    $23 B returned / $51 B disbursed



    what myth?
     
  5. Foxfyre
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    Foxfyre Eternal optimist Gold Supporting Member Supporting Member

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    All you have to know about GM is that the controlling interest is now in the hands of its own union, and that it probably cannot survive without continued funding from the Federal government. Which of course it gets in return for manufacturing things like the Volt with such an abysmal sales record that the leftwing media buries any such reports way iznside the paper below the fold if they report it at all.

    The initial bailout of course was sold to us on the basis that GM was one of those 'too big to fail' entities and we simply could not allow it to go into bankruptcy. So it went into bankruptcy anyway with the result that the Federal government and its own union emerged holding most of the stock. That alone should chill the heart of every freedom loving American.
     
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  6. RightWingFerret
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    RightWingFerret BANNED

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    if GM is doing so well,then how come the government still needs to borrow a trillion a year to pay its bills? The GM bailout is like loaning a small buinsess two million dollars to keep it afloat, and hoping for profit, then two years down the line, its able to pay back the loan, but needs to bring in 200,000 a month to cover all overhead costs and is taking in 210,000. GM isnt selling autos like it was in 1985 when at times you couldn't find a salesman. (i remember that when I was shopping for a camaro!).The Dems will always claim how well its doing, yet we dont see the trickle down effect in the 8.3 unemployment, and no sign its getting any lower.
     
  7. Mr. Shaman
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    Mr. Shaman Senior Member

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    Not a PROB!!!

    Well there you have it, another "conservative"-bullshit myth exposed.​
     
  8. Jackson
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    Jackson Gold Member Supporting Member

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    General Motors Will Never Repay Taxpayers

    The Obama administration, and its media backers, have seized upon news that General Motors made a $3.2 billion profit in the first quarter of 2011 as proof positive that its auto bailout is a success. President Obama is so buoyed that he is reportedly planning to make the bailout a major part of his reelection campaign.

    Realities:

    1. No doubt, $3.2 billion is a big number. But an even bigger number is $60 billion. That’s what this administration and the last one together sank into GM (not to mention another $20 billion or so they dumped into Chrysler). When President Obama gave GM this money, he insisted that it was not a handout but an “investment” that would cost taxpayers “not a dime.”
    But if there was ever any doubt that this wasn’t going to happen, this earning report dispels it.

    2. For starters, included in the $3.2 billion figure is the net $1.5 billion that the company generated from the one-time sale of Delphi, its auto parts supplier, and Ally Financial, its financial arm. Subtract that, and its performance looks much less impressive, especially compared to its rival Ford that really didn’t receive a dime from taxpayers yet made $2.6 billion last quarter—or nearly a billion more than GM.

    3. But cold, hard cash is not the only help that GM got. Usually when companies declare bankruptcy, their tax liabilities increase since they have no more losses to write off. But GM got Uncle Sam’s special bankruptcy package that allows it write off up to $45 billion of old losses going forward. That puts its total bailout at up to $75 billion*. Even that’s not all. The Treasury gave GM $10 billion of the $60 billion as a loan; the rest was through the purchase of equity. (It has more or less paid back the loan.)

    4. The equity means two things: One, GM has zero interest payments, something that gives it a distinct advantage over competitors. Ford, by contrast, had to pay $251 million in debt-service costs. Despite this, GM’s real per vehicle margin was over $1,000 less than Ford’s, thanks to the heavy incentives it was forced to give buyers

    5. And two, taxpayers have no guaranteed return as they would have with a loan. Therefore, market valuation of GM’s stock will determine what they will recover. They got back $20 billion when the Treasury sold half of its equity when GM floated its first post-bankruptcy IPO in December. But that still leaves a $30 billion shortfall (excluding the $45 billion tax break).

    Given such realities, Bloomberg’s survey of 21 auto analysts put the average projected price for GM at $42.85 per share a year from now. This means that, outside of miracle, taxpayers will lose anywhere from $13 to $19 billion on their principal and another $15 billion on taxes for a grand total of up to $28 to $34 billion* in losses. And that’s just for GM. Chrysler is whole different—and equally sordid—story. Even Treasury Secretary Timothy Geithner acknowledged last month: “We’re going to lose money in the auto industry.”
    .
    Reason Foundation Senior Analyst Shikha Dalmia is a columnist at The Daily, America's first iPad newspaper, where this column originally appeared.

    General Motors Will Never Repay Taxpayers - Reason Magazine
     
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  9. Sunshine
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    Sunshine Trust the pie. Supporting Member

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    Yeah, they sorta fucked up my golden years. I had planned to by a Cadillac before I retired, but all my friends who have them have had serious trouble with them. Never want a GM product. Ever.
     
  10. The T
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    The T George S. Patton Party Supporting Member

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    The Bailout was for the Unions...NOT the Company nor it's shareholders.

    The shareholders got the shaft.

    GM Stock Sale: Union Wins, Taxpayers Lose

    Obama Fires General Motors CEO in Government-Backed Union Coup

    Was General Motors Really Bailed Out By the Government, Or, Was The Bail Out Money Used To Bolster The UAW?
     
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