Saving General Motors from bankruptcy was among President Obama’s most frequently cited achievements when he ran for re-election last year. Democrats everywhere touted the company’s revival as proof of the 2009 bailout’s wisdom. That was then. Now, Obama has quietly released the auto manufacturer from a bailout requirement that it increase its production in the U.S. Instead, GM is spending billions of dollars building up its production capacity in ... China.
This is happening despite the fact that the Treasury Department has to date recovered just $36 billion of its original $51 billion loan to GM. By most analysts’ predictions, American taxpayers will be out approximately $10 billion when the remaining stock is sold off. Which is a long way of saying that it now appears that taxpayers paid $10 billion to make it easier for GM to accelerate its foreign outsourcing and send more manufacturing jobs to China.
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Lucinda Knotts
Senior Member
Registered: 01/11/11
Posts: 4460
Loc: USA
It's true that the government will, in all probability, come up about $10 billion short when it liquidates the remaining shares of GM stock early next year. The loss is in large part due to the fact that GM shares are worth less than what was estimated when the loans were originally made. However, that $10 billion saved our auto industry, as well as hundreds of thousands of jobs when the rest of the auto industry food chain is considered. In the long term, it was money well spent, I think. Now would you care to contrast that $10 billion to the estimated $24 billion that was lost to the economy during the recent government shutdown? In the first case, the $10 billion saved our auto industry. In the second, the $24 billion gained bupkis.
SportsRef1
Senior Member
Registered: 11/30/03
Posts: 3225
Loc: Seneca County
Originally Posted By: Lucinda Knotts
It's true that the government will, in all probability, come up about $10 billion short when it liquidates the remaining shares of GM stock early next year. The loss is in large part due to the fact that GM shares are worth less than what was estimated when the loans were originally made. However, that $10 billion saved our auto industry, as well as hundreds of thousands of jobs when the rest of the auto industry food chain is considered. In the long term, it was money well spent, I think. Now would you care to contrast that $10 billion to the estimated $24 billion that was lost to the economy during the recent government shutdown? In the first case, the $10 billion saved our auto industry. In the second, the $24 billion gained bupkis.
"The loss is in large part due to the fact that GM shares are worth less than what was estimated when the loans were originally made."
imagine that......another piss poor decision by the Federal Govt...makes me wonder how many people went without, but hell it's only $10 Billion!
Lucinda Knotts
Senior Member
Registered: 01/11/11
Posts: 4460
Loc: USA
It's a shame that the officials who were working on the bailout package didn't have your clairvoyant ability to know what GM stock prices would be three years in the future.
It's a shame that the officials who were working on the bailout package didn't abide by the bankruptcy law, i.e. law of the land, before forfeiting American Taxpayer dollars. But then again, the Dems are exempt from the law of the land. Laws are only for the right.
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sands
Senior Member
Registered: 09/05/05
Posts: 8255
Loc: NY
Originally Posted By: Zealot
It's a shame that the officials who were working on the bailout package didn't abide by the bankruptcy law, i.e. law of the land, before forfeiting American Taxpayer dollars. But then again, the Dems are exempt from the law of the land. Laws are only for the right.
Lucinda Knotts
Senior Member
Registered: 01/11/11
Posts: 4460
Loc: USA
A bankruptcy by the nation's largest auto manufacturer (aka the Romney solution) would probably have also brought down hundreds of smaller businesses in the auto industry food chain, as well as hundreds of thousands of jobs nationwide. But hey, I guess it probably wouldn't have affected any of you personally, so it's okay. For all your huffing and puffing about the good of the country, you seem to put self interest first.
A bankruptcy by the nation's largest auto manufacturer (aka the Romney solution) would probably have also brought down hundreds of smaller businesses in the auto industry food chain, as well as hundreds of thousands of jobs nationwide. But hey, I guess it probably wouldn't have affected any of you personally, so it's okay. For all your huffing and puffing about the good of the country, you seem to put self interest first.
So let me get this straight, only the left are smart enough to determine when a law stands and when it is bypassed?
And I'm not sure how much you know about bankruptcy law but a bankruptcy does not need to result in loss of any jobs at all, just a restructuring of the company's debt so that priorities get set and investers get paid back. Many times the company goes on to be more profitable and stronger than ever in the long run.
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Lucinda Knotts
Senior Member
Registered: 01/11/11
Posts: 4460
Loc: USA
Originally Posted By: Zealot
And I'm not sure how much you know about bankruptcy law but a bankruptcy does not need to result in loss of any jobs at all, just a restructuring of the company's debt so that priorities get set and investers get paid back. Many times the company goes on to be more profitable and stronger than ever in the long run.
No, I'm not an expert on corporate bankruptcy as you seem to be. Perhaps you could enlighten us by providing, say, five examples of major corporations that have filed for bankruptcy and had no job losses or closures of facilities. And while you're at it, it would be helpful if you'd give us all some examples of major corporations that have emerged from bankruptcy with the same number of employees, and have become more profitable than ever. Be sure to include the time frame as well.
A bankruptcy by the nation's largest auto manufacturer (aka the Romney solution) would probably have also brought down hundreds of smaller businesses in the auto industry food chain, as well as hundreds of thousands of jobs nationwide. But hey, I guess it probably wouldn't have affected any of you personally, so it's okay. For all your huffing and puffing about the good of the country, you seem to put self interest first.
So let me get this straight, only the left are smart enough to determine when a law stands and when it is bypassed?
And I'm not sure how much you know about bankruptcy law but a bankruptcy does not need to result in loss of any jobs at all, just a restructuring of the company's debt so that priorities get set and investers get paid back. Many times the company goes on to be more profitable and stronger than ever in the long run.
Your knowledge of bankruptcy is rather generic, give us the distinction of filing chapter 7, 11 or 13. Then maybe you can restate your supposed expertise.
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