GM Repays loan ahead of schedule

• ptown_trojans_1

  

  GM announced yesterday, and I just saw the ad on tv, that it has fully repaid with interest the TARP loan 5 years ahead of schedule.
  
  This allows the government to sell its section of GM sooner than expected as well.
  
  Good for GM, and perhaps, just maybe, the bailout for GM was a good idea?
  http://www.reuters.com/article/idUSTRE63K56920100421
  
  
  I know conservatives will rail the decision still, but it worked: It kept GM open, reorganized, and allowed them to start anew. Not saying it should be the norm, but that maybe it wasn't such a bad idea.
• bases_loaded

  

  IT doesn't matter if it works, it still was/is wrong. Ford survived and is thriving without taking tax payers money to do it.
• jmog

  bases_loaded wrote: IT doesn't matter if it works, it still was/is wrong. Ford survived and is thriving without taking tax payers money to do it.

  +1
• captain_obvious

  jmog wrote:

  bases_loaded wrote: IT doesn't matter if it works, it still was/is wrong. Ford survived and is thriving without taking tax payers money to do it.

  +1

  At the risk of sounding redundant... +2
• WebFire

  bases_loaded wrote: IT doesn't matter if it works, it still was/is wrong. Ford survived and is thriving without taking tax payers money to do it.

  Against the bailouts, but technically since it's paid, the tax payers didn't spend a dime on this.
• CenterBHSFan

  

  At least they set a great example to our government. If ya know what I mean...
• BoatShoes

  So do some folks really believe that allowing GMC to disappear would have been better for American Solidarity? General Motors had been providing Americans with automobiles and good paying jobs for decades...Americans getting together and putting them on their backs to give them another shot to me is just what America is all about.
• ptown_trojans_1

  

  bases_loaded wrote: IT doesn't matter if it works, it still was/is wrong. Ford survived and is thriving without taking tax payers money to do it.

  Yes it does. Because, it provides a case where it works, where the U.S. gave a loan, it was repaid, with interest, and one of the foundation blocks of American auto makers staved off closure.
  
  Now yes, Ford did restructure back in 06 and 07 to avoid bailout and is thriving now, and GM was stupid for not also restructuring. But, it looks like now they are on the right track and it did not cost the taxpayer as the loan has been paid back.
• derek bomar

  

  ptown_trojans_1 wrote:

  bases_loaded wrote: IT doesn't matter if it works, it still was/is wrong. Ford survived and is thriving without taking tax payers money to do it.

  Yes it does. Because, it provides a case where it works, where the U.S. gave a loan, it was repaid, with interest, and one of the foundation blocks of American auto makers staved off closure.
  
  Now yes, Ford did restructure back in 06 and 07 to avoid bailout and is thriving now, and GM was stupid for not also restructuring. But, it looks like now they are on the right track and it did not cost the taxpayer as the loan has been paid back.

  I know that it was reported they were paid back with interest, but can we verify that that rate is also what China charged us for the money we lent to GM?
• Belly35

  

  Where is the pay back money and interest going ..once it is paid back?
  Anyone know the answer? What will it be used for and applied against?
• bases_loaded

  

  If GM would have failed, another company would have filled the void(if there is one created) in the manufacturing of cars. That company(if needed) would have to hire people too.
  
  Its just like when an animal becomes extinct, its niche isn't left vacant another more stable animal moves in.
• Writerbuckeye

  

  So we're to believe that GM is out of the woods now (including the pension plan) and everything is hunky dory and all the money has been repaid with no more to be given to them?
  
  Put me in the very skeptical camp until I see more information on this.
• assumption

  bases_loaded wrote: If GM would have failed, another company would have filled the void(if there is one created) in the manufacturing of cars. That company(if needed) would have to hire people too.
  
  Its just like when an animal becomes extinct, its niche isn't left vacant another more stable animal moves in.

  IF!!!! GM did fail!! I lost a fair amount when they declared bankruptcy. We ( the govt.) now has 60% controling interest. And the company is getting back on its feet, thanks to the loans and bail-out. Your analogy is comical.
• bman618

  The GM bailout isn't quite as simple as night and day. We've lost a lot of our manufacturing capability as a country over the last decade - over 5 million jobs to be exact which is a third of manufacturing jobs we had. Total employment in manufacturing has went from the low 30 percents in the 1950s to about 10 percent today and the decline continues. While we weren't going to keep around 33 percent employment in manufacturing with the reemergence of Europe and Japan after WWII and the breakdown of world socialism in the 1990s, 10 percent is way too little.
  
  Having GM go under, even if a replacement company would come up which would be tough with credit being so tight, we would lose some more manufacturing capability more than likely.
  
  There needs to be a line drawn here or we are going to become a third world country. We are dependent on a lot of foreign made goods with a ton of bad debt. The only thing really holding us up right now is being the reserve currency and foreigners underwriting our inflation through the use of our money. If the U.S. would lose reserve status, we would be in a depression worse than the 1930s.
  
  And it appears the bailout has passed its first test. I'd caution this is just a small step as GM is still losing billions per quarter. Unless they borrowed the money somehow or sold a few of their assets, I'm not sure exactly how they paid this back.
• QuakerOats

  assumption wrote: IF!!!! GM did fail!! I lost a fair amount when they declared bankruptcy. We ( the govt.) now has 60% controling interest. And the company is getting back on its feet, thanks to the loans and bail-out.

  And thanks to the theft from the bondholders.
  
  It is a lot easier to make a go of something when you steal most of it in the first place.
  
  Change we can believe in ..............................
• Manhattan Buckeye

  For those who are skeptical, you aren't alone:
  
  http://www.qando.net/?p=8059
• QuakerOats

  Manhattan Buckeye wrote: For those who are skeptical, you aren't alone:
  
  http://www.qando.net/?p=8059

  my oh my.
• fish82

  

  Manhattan Buckeye wrote: For those who are skeptical, you aren't alone:
  
  http://www.qando.net/?p=8059

  Oops.
• derek bomar

  

  Yea I don't know why their dumbass CEO would get on TV and say they repaid the feds if they're repaying them with TARP money...fucking GM blows. Ford ftw.
• wkfan

  "Jamie Dupree brings us the rest of the story:
  
  The issue came up yesterday at a hearing with the special watchdog on the Wall Street Bailout, Neil Barofsky, who was asked several times about the GM repayment by Sen. Tom Carper (D-DE), who was looking for answers on how much money the feds might make from the controversial Wall Street Bailout.
  
  “It’s good news in that they’re reducing their debt,” Barofsky said of the accelerated GM payments, “but they’re doing it by taking other available TARP money.”
  
  In other words, GM is taking money from the Wall Street Bailout – the TARP money – and using that to pay off their loans ahead of schedule.
  
  “It sounds like it’s kind of like taking money out of one pocket and putting in the other,” said Carper, who got a nod of agreement from Barofsky.
  
  “The way that payment is going to be made is by drawing down on an equity facility of other TARP money.”
  
  Translated – they are using bailout funds from the feds to pay off their loans.
  
  Somehow this exchange never made it to other media outlets.
• cbus4life

  Lol @ GM.
• Writerbuckeye

  

  This administration is the biggest bunch of liars and thieves to occupy the White House -- ever.
• derek bomar

  

  Writerbuckeye wrote: This administration is the biggest bunch of liars and thieves to occupy the White House -- ever.

  GTFOOH
• IggyPride00

  

  Writerbuckeye wrote: This administration is the biggest bunch of liars and thieves to occupy the White House -- ever.

  You mean it wasn't the President who was tagged with the famous line "Bush lied, people died"?
• j_crazy

  

  chrysler still owes us money.