Sunday, April 25, 2010

GM brags of paying back taxpayers funds, fails to mention they used, well, taxpayer funds|

GM brags of paying back taxpayers funds, fails to mention they used, well, taxpayer funds|

No more GM products for me. I am a ford guy anyway, so it will not be too painful. I heard a Gm commercial on the radio yesterday; I think it was the CEO speaking. He was saying how GM had paid back the bailout money and GM is on the road to recovery. Intuitively, I thought he was not telling the truth. Now I find out indeed, he was not. All the fancy CEOs and politicians can play their games with words and numbers, but in the end 2+2 must equal 4 (thanks Newt). The funds GM paid back, were paid back using more taxpayer funds.

The dishonest ad produced by GM, adds insult to injury. First, they take my hard-earned tax dollars to prop up their lousy business model, and then they use more of my hard-earned tax dollars to trick me into believing they had paid off the first round of taxpayer dollars.

AMERICAN THINKER, RICK MORAN WRITES:
And that's only part of the story. The fact is, the money GM is bragging they paid back is from a government financed escrow account.

GM paid back taxpayers with taxpayer money.
More here:
Newsmax.com
Sen. Chuck Grassley is asking Treasury Secretary Tim Geithner to justify those claims. According to the Iowa Republican, GM has repaid its TARP (taxpayer-funded bailout) loans using other TARP funds.
 And more here:
CATO Commenting on WSJ Article:
But wait: In the Wall Street Journal, Whitacre says the company has made a $5.8 billion payment to the governments of the United States and Canada. But don’t I recall that the GM bailout was $50 billion? Shikha Dalmia of the Reason Foundation explains the whole story in Forbes: First, part of the bailout went into an “escrow fund,” and that government money is being used to pay back the small part of the bailout that was officially a loan. Second, GM is asking for another $10 billion loan to retool its plants to meet the stiffer Corporate Average Fuel Economy standards, and paying back one government loan — with other government money — will make it easier to get another government loan.

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