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Auto Bailout Cost Taxpayers $25,000,000,000

From the Detroit News:

Treasury: U.S. to lose $25 billion on auto bailout

By David Shepardson | Monday August 13, 2012

Washington — The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That’s 15 percent higher than its previous forecast.

And not to mention, completely different from what our one party news media has told us. Since they have assured us for years now that GM and Chrysler have paid back their loans. This is what the so-called ‘low information voter’ has been led to believe.

In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.

$25 billion here, $25 billion there, and soon you are talking about real money.

The report may still underestimate the losses. The report covers predicted losses through May 31, when GM’s stock price was $22.20 a share.

On Monday, GM stock fell $0.07, or 0.3 percent, to $20.47. At that price, the government would lose another $850 million on its GM bailout.

So make that $26 billion, and counting.

The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout. At the current price, the Treasury would lose more than $16 billion on its GM bailout.

Which is what happens when the government bets on winners and losers. Even when they can put their thumb on the scale.

The steep decline in GM’s stock price has indefinitely delayed the Treasury’s sale of its remaining 26 percent stake in GM. No sale will take place before the November election…

Despite Obama’s claims to be so eager to get out of the ownership of GM.

Taxpayers incurred a $1.3 billion loss on the $12.5 billion bailout of Chrysler.

The Treasury also has put on hold an initial public offering initially planned for last year in Ally Financial Inc. because of market weakness. The government holds a 74 percent majority stake in the Detroit auto finance company as part of its $17.2 billion bailout and has recovered $5.7 billion

And to think, just last week Obama told us that he wants to do for the rest of the country what he did for GM and Chrysler.

This article was posted by Steve on Tuesday, August 14th, 2012. Comments are currently closed.

6 Responses to “Auto Bailout Cost Taxpayers $25,000,000,000”

  1. heykev says:

    And to think, just last week Obama told us that he wants to do for the rest of the country what he did for GM and Chrysler.

    He’s already done it to Medicine with Obamacare and to business with his shovel-ready Stimulus package of jobs and too the Coal industry with via the EPA.

    He’s succeeding better than he imagined.

    • Petronius says:

      “do for the rest of the country what he did for GM and Chrysler.”

      Here is a look at GM’s share price since Nerobama’s take-over :

      2 Jan 2011 . . . . . . . . . $36.86
      yesterday’s close . . . . $20.47

      Here is a brief history of the S&P 500 Index since the turn of the century:

      3 Jan 2000 . . . . . . . . . . 1455
      1 Sep 2008 . . . . . . . . . . 1520 (before sub-prime meltdown)
      yesterday’s close . . . . . 1404

      Thus the stock market is lower now than it was nearly 13 years ago. Since the meltdown housing prices nationwide have fallen by about one-third. Bonds have been strong recently due to historically low interest rates. However, the fiscal cliff is fast approaching, including the risk of another credit downgrade. If investors feel a country is higher risk, they’ll demand a higher interest rate, and bonds will fall.

      I would not want to be invested in the stock market, bond market, or housing market after 6 Nov, if Nerobama and his henchmen are reelected. In fact, I’m not sure I’d want to be in the country.

  2. GetBackJack says:

    Non-Union pension holders

    Preferred Shareholders

    $25 billion lost

    … and everyone’s forgotten .. at least 100 Chrysler dealers simply closed, shuttered and run out of business. Without being compensated

  3. canary says:

    As Senator, Obama complained of the non-speaking English, Latinos that fixed his car.

    I guess Obama’s statement that fuel could be saved for just ever car having a fuel tank for an extra 100 dollars, he heard from some one who can’t count and measure.

    Yeah right. When you have to redesign entire autos and fleets to fit a new gas tank? I said gas tank. Not battery.

    • Rusty Shackleford says:

      non-speaking English, Latinos

      Were these mutes British subjects, pray-tell?

      (just kidding….the awkwardness of the sentence…where I think you meant, “non English-speaking Latinos”, was kind of funny and painted a humorous picture to me…where they used sign language and had an aloof, stuffy attitude and bad teeth.

      With ya on the gas tank, though.

  4. Reality Bytes says:

    Stand up for liberty! Buy a Honda!

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