Quote:
Originally Posted by Joe
Bait fish, not people. I said GM was profitable and paid back the loans - it's b.s. though. Now I'm so embarrassed I'm going to cry. They're saying Ford is profitable too - that must be b.s. also.
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GM did use the $6.7 billion they were loaned. They had a separate account of "free" money the government set aside for them which they used to pay off the loan.
GM was making a big deal about “paying off” their loan when in reality, they were only “paying off” a portion of the “loan.”
“At first the entire amount of U.S. aid was considered a loan as the government tried to keep GM from going under and pulling the fragile economy into a depression.
But during bankruptcy, the U.S. government reduced the loan portion to $6.7 billion and converted the rest to company stock, while the Canadian governments held $1.4 billion in loans.”
And now they used TARP money to “pay off” the $6.7 billion and trumpet this as a "return to profitability"
GM used taxpayer money that they weren't required to pay back to pay off their taxpayer loan that they were required to pay back.
the govt still owns 60% of GM(is your house paid off if the bank still owns 60% of it?)
sounds like what goes on in Washington everyday...it's all very dirty.. and this was approved by Treasury...you know Geitner the tax cheat...surprise..
Ford "returned to profitability" the old fashioned way...
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