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Obama auditors say new GM and Chrysler "give aways" will cost $34 billion

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posted on May, 17 2010 @ 11:10 PM

AP Economics Writer
The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009.

Of course, giving most of Chrysler to the UAW wouldn't have anything to do with this, would it?

Treasury officials said that the government had no plans to boost its stake in the new Chrysler to cover those losses. It also acknowledged another $1.9 billion in potential losses from a separate loan that had been made to the company that went through bankruptcy proceedings. It indicated slim hopes of recouping much if anything from that separate $1.9 billion loan.

And what about "our" 60% stake in GM?

The Congressional Budget Office estimated in March that the government's $85 billion bailout of the automakers would cost taxpayers $34 billion.

Much of it will depend on how much the government recovers from its eventual sale of nearly 61 percent of GM and about 10 percent of Chrysler.

I figure MSNBC would be considered "reliable" by most of Obama's advocates, so I'd be willing to bet that the real costs and losses will be much greater.

The auto takeovers have been disgusting.


[edit on 18-5-2010 by jdub297]

posted on May, 17 2010 @ 11:20 PM
This kind of explains the whole cash for clunkers crap, they tried to make everyone get rid of their beaters in order to buy new vehicles to pay back what the govt loaned the auto companies.

Well, at least thats how I see it. It only makes sense.

If im wrong, dont flame me too hard.

posted on May, 17 2010 @ 11:27 PM
reply to post by Common Good

The extra $34 billion give-aways does not even include the cost of the "clunkers" program, or the cost of assuming responsibility for the pension accounts, or the "secured creditors" who got stiffed in violation of 234 years of bankruptcy rules and laws.

This administration cares only about its supporters and advocates.

(Wait 'til the banking bailout numbers get totaled.)


posted on May, 18 2010 @ 06:46 AM
Oh, and let's not forget that GM's "return to profitability" and "repayment" of the original TARP loans was financed with other TARP money!

The New York Times revealed the deception shortly after the GM advertisements (since, canceled) in their report:

Repaying Taxpayers With Their Own Cash

AS we inch closer to a clearer understanding of the products and practices that unleashed the credit crisis of 2008, it’s becoming apparent that those seeking the whole truth are still outnumbered by those aiming to obscure it. This is the case not only on Wall Street but also in Washington.

Truth seekers the nation over, therefore, are indebted to Senator Charles E. Grassley, Republican of Iowa, who in recent days uncovered what he called a government-enabled “TARP money shuffle.” It relates to General Motors, which on April 21 paid the balance of its $6.7 billion loan under the Troubled Asset Relief Program.
Taxpayers are naturally eager for news about bailout repayments. But what neither G.M. nor the Treasury disclosed was that the company simply used other funds held by the Treasury to pay off its original loan.

Neil M. Barofsky, the inspector general overseeing the troubled asset program, revealed this detail when he spoke before the Senate Finance Committee on April 20.
“Much of it will never be repaid,” Mr. Grassley added. “The Congressional Budget Office estimates that taxpayers will lose around $30 billion on G.M.”

(Taxpayers still own $2.1 billion in preferred stock of G.M. and almost 61 percent of its common equity.)

Just how foolish are we when we continue to believe and fund the Administration and GM's continued deception about the auto takeovers?

deny ignorance

[edit on 18-5-2010 by jdub297]

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