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.

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:
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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