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Taxpayers Lose $10.5 Billion On GM Bail-Out

From an unfazed Associated Press:

Government sells remaining stake in GM

By TOM KRISHER | December 9, 2013

DETROIT (AP) — The U.S. government ended up losing $10.5 billion on the General Motors bailout, but it says the alternative would have been far worse.

Really? What other bankruptcies have cost the US taxpayers billions of dollars? We don’t seem to recall any.

The Treasury Department sold its final shares of the Detroit auto giant on Monday, recovering $39 billion of the $49.5 billion it spent to save the dying automaker at the height of the financial crisis five years ago.

And never mind that in 2010 Obama declared on ‘The View’: “We are going to get all of the money back that we invested in those car companies.” And, in fact, Obama constantly touted how the taxpayers would get all of their money back, with interest, during the 2012 campaign. (Which he knew was a lie. As did we.)

But the elections have been over for a year, and the GM stock can be sold. And the taxpayers can take their $10 billion dollar loss and like it.

Without the bailout, the country would have lost more than a million jobs, and the economy could have slipped from recession into a depression, Treasury Secretary Jacob Lew said on a conference call with reporters….

BS. If GM had been allowed to undergo a normal bankruptcy, it would be far better off today. It would be out from under its impossible UAW contracts. It would even be paying taxes. Which GM is not going to do for ten years. Which is also costing the US taxpayers money.  But Obama needed to protect his foot soldiers in the UAW.

GM went through bankruptcy protection in 2009 and was cleansed of most of its huge debt, while stockholders lost their investments…

Who cares if the investors in GM lost their shirts? The UAW, which destroyed GM, got to keep their lavish pensions. In fact, they were given the company.

What a sweet deal! But that’s what happens when you help buy a President.

The rescue was a centerpiece of Obama’s 2012 campaign, with the president touting the bailout in midwestern states and arguing that his GOP opponent, Mitt Romney, would have allowed the industry to go out of business.

Democrats hammered Romney for a New York Times op-ed he wrote, which was headlined “Let Detroit Go Bankrupt.” Romney said that he had not penned the headline and said that the managed bankruptcy process the Obama administration used to rescue GM and Chrysler was what he had also proposed…

And never mind that Romney was right on every point. And never mind that Romney would not have screwed the shareholders and given GM to the UAW.

This article was posted by Steve on Tuesday, December 10th, 2013. Comments are currently closed.

2 Responses to “Taxpayers Lose $10.5 Billion On GM Bail-Out”

  1. GetBackJack says:

    Then, let me see, does this mean our Federal Government just pulled off a transfer of wealth to a new stockholder? I mean, discounted paper and all that ..

  2. Astravogel says:

    What we have here is a faith-based Administration; faith that
    the suckers never catch on in time to do anything about it.

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