HomeUploadUpload DirectHotlinkRandomAbouttheme toggle
Expand

How The Hell Did GM Pay Back Its Loans "in Full And Ahead of Schedule"? Well, It Didn't.

Views:925
@ReasonVids

General Motors CEO Ed Whitacre has bragged in TV commercials and newspaper columns that GM has paid back its bailout "in full and ahead of schedule."

As with the Pontiac Aztek, an ugly exterior masks an ever darker problem: Whitacre is being fanciful to the point of deceit. GM received $50 billion in TARP funds (never mind that TARP was only supposed to cover financial institutions). About $7 billion of that came in the form of a straight-up, low-interest loan. And about $13 billion came in the form of an escrow account.

So how has GM, which lost $38 billion in 2007 even as it sold 9.4 million cars, paid back its debt? It took money from the escrow account to pay back the $6.7 billion loan.

Do you remember when you were a kid and your parents gave you $20 to buy them a Christmas present? You bought them something worth $3 and pocketed the rest? That's what GM has just done.

Oh, and do you remember when you hit your parents up for college? GM has applied for a $10 billion, low-interest loan from the government to modernize its plants so its cars will meet new federal mileage standards.

If you think all this constitutes paying back their debt in full and ahead of schedule, you might want to check out the new line of GM cars. And hope that the company's safety engineers are better at math than their CEO.

gm
,
general motors
,
bailout
,
whitacre
,
tarp
,
payback
,
big three
,
corporate welfare
,
reason.tv
,
reason.com
,
reason.org
,
reason magazine
,
reason foundation
,
dan hayes
,
meredith bragg
,
nick gillespie
    Thumbnail for Libertarianism From A to Z With Jeffrey Miron9:32
    Libertarianism From A to Z With Jeffrey Miron
    ReasonVids
    1952 views
    Thumbnail for Homers Enemy-Nuclear contest scene+Frank goes crazy3:27
    Homers Enemy-Nuclear contest scene+Frank goes crazy
    clips
    930 views
    Thumbnail for Vote Bear0:56
    Vote Bear
    ReasonVids
    894 views
    Thumbnail for Strawberry Cough: Biography of an Award-Winning Cannabis Strain6:29
    Strawberry Cough: Biography of an Award-Winning Cannabis Strain
    ReasonVids
    888 views
    Thumbnail for What's Up With The Italian Mortality Rate? - Questions For Corbett21:22
    What's Up With The Italian Mortality Rate? - Questions For Corbett
    corbettreport_uo
    2079 views
    Thumbnail for The Main Cathedral of the Russian Armed Forces (Cathedral of the Resurrection of Christ)2:08
    The Main Cathedral of the Russian Armed Forces (Cathedral of the Resurrection of Christ)
    Gviduser
    648 views
    Thumbnail for Ukraine: Brave Man Rescues Conscripts, Daring ТЦК to Shoot0:26
    Ukraine: Brave Man Rescues Conscripts, Daring ТЦК to Shoot
    bestofupgoat
    104 views
    Thumbnail for Occupy Wall Street Protester: "I got some money and I should be taxed more."0:33
    Occupy Wall Street Protester: "I got some money and I should be taxed more."
    ReasonVids
    886 views
    Thumbnail for Severe weather in Nebraska and Iowa Thursday evening | KETV NewsWatch 72:57:48
    Severe weather in Nebraska and Iowa Thursday evening | KETV NewsWatch 7
    invidious
    76 views
    Thumbnail for It's actually just a jew problem1:22
    It's actually just a jew problem
    AOUisgay
    480 views
    Thumbnail for ManBearPig, Climategate and Watermelons: A conversation with author James Delingpole9:52
    ManBearPig, Climategate and Watermelons: A conversation with author James Delingpole
    ReasonVids
    805 views
    Thumbnail for Bobobo-bo Bobo-bo in a Nutshell | Sufo0:24
    Bobobo-bo Bobo-bo in a Nutshell | Sufo
    invidious
    435 views
    Thumbnail for High School Boys Are Trending Conservative1:19
    High School Boys Are Trending Conservative
    bestofupgoat
    412 views
    Thumbnail for Chroma's Hell - The Near Impossible Fullspeed Map | WirtualTV10:09
    Chroma's Hell - The Near Impossible Fullspeed Map | WirtualTV
    invidious
    361 views
    Thumbnail for Log4js logging and logrotate - Log4js in NodeJS | Paris Nakita Kejser11:15
    Log4js logging and logrotate - Log4js in NodeJS | Paris Nakita Kejser
    invidious
    265 views
    Thumbnail for A Cat Can Fit in Your Hole… Allegedly | Grunt Speak Shorts3:05
    A Cat Can Fit in Your Hole… Allegedly | Grunt Speak Shorts
    Terrence Popp
    893 views
    Thumbnail for Policing for Profit - The Abuse of Civil Asset Forfeiture2:31
    Policing for Profit - The Abuse of Civil Asset Forfeiture
    IJvids
    821 views
    Thumbnail for We Read Hillary's Book So You Don't Have To4:38
    We Read Hillary's Book So You Don't Have To
    ReasonVids
    924 views
    Thumbnail for Impressive video0:19
    Impressive video
    bestofvoatxyz
    533 views
    Thumbnail for 24/7 Fireplace Christmas Music 🎅🎁 Christmas Instrumental Music 🎄 Christmas Background Music | Cozy Flames1:00
    24/7 Fireplace Christmas Music 🎅🎁 Christmas Instrumental Music 🎄 Christmas Background Music | Cozy Flames
    invidious
    340 views
    Thumbnail for Adapting the Epic: The Making of Atlas Shrugged the Movie3:26
    Adapting the Epic: The Making of Atlas Shrugged the Movie
    ReasonVids
    879 views
    Thumbnail for Marketing genius0:07
    Marketing genius
    bestofsaidit
    646 views
    Thumbnail for DEAD RISING 4 Walkthrough Gameplay Part 13 - Evolved Zombies (XBOX ONE S) | theRadBrad17:10
    DEAD RISING 4 Walkthrough Gameplay Part 13 - Evolved Zombies (XBOX ONE S) | theRadBrad
    invidious
    314 views
    Thumbnail for Who's Joy?1:01
    Who's Joy?
    bestofupgoat
    198 views

points

Permalink
Reply
gm
,
general motors
,
bailout
,
whitacre
,
tarp
,
payback
,
big three
,
corporate welfare
,
reason.tv
,
reason.com
,
reason.org
,
reason magazine
,
reason foundation
,
dan hayes
,
meredith bragg
,
nick gillespie
TOS  •  Add Keywords  •  Donate  •   Analytics  •   DMCA  •   Puzzle