Posts Tagged ‘bailout’

How much has the (Union) (Government) General Motors (GM) (Payoff) Bailout Cost US???

December 19, 2012

I need someone to please help me!!!! 

Are reporters and their Media Masters either 1) Completely LAZY OR 2) Completely INCOMPETENT OR 3) Can they possibly be this lacking in MORALS, and EVIL, that they have no problem LYING OUTRIGHT to the American People in order to push an AGENDA??  

I guess I am to much of an optimist and trusting in the good will of others that I seriously have a difficult time believing that the answer is Number 3!!!  I mean, the collaboration, that this requires of everyone involved is amazing.  IF it is true, just imagine what they could do, working together like this, on a worthy goal!!!

Why am I asking a question with only these possible answers, you ask??  The following are articles from this morning:

GM to buy stake from Treasury, government plans full exit” – Fox Business

GM & Feds Announce They’re Breaking Up, Automaker to Buy Back 200M Shares” – The Blaze

GM to Buy Back Stake From Treasury; US to Exit” – CNBC

And there are MANY, MANY more of these articles.  Go ahead and search “GM buys back government shares”, there are already over 500,000 links!!!

“That sounds like a good deal to me”, you say, “I don’t want my government owning one of the largest manufacturers on the planet”.  “So, what’s wrong??”

Here is a line (or variation) that is in ALL of the articles:

“GM received about $50 billion from the U.S. Treasury as part of its 2009 bankruptcy restructuring in 2009 under the Troubled Asset Relief Program (TARP).”

YES, this statement is TRUE!!!  BUT….That is NOT the WHOLE STORY!!!  Here is another line:

“The deal will raise the proceeds Treasury has recovered to $28.6 billion. That leaves $20.9 billion left on the original bailout amount.”

And here is where it gets a little tricky!!!  You see that word, ORIGINAL??  Or that, “GM received about $50 Billion from TARP”??  That is NOT ALL THAT THEY RECEIVED!!!  They ALSO received ZERO TO VERY LOW (below market rates by FACTORS) loans in order to make the first repayments.  And some of those “loans were written off!!!  In other words, the Government gave GM a “loan” so it could repay the payoff “Bailout”, and THEN, the government told GM that they didn’t need to repay the “loan”.  And don’t forget the $45.4 BILLION that WE gave to GM in order to cover future tax payments!!  IF they ever truly make a profit!!!

Also, something that used to be done in business is a calculation concerning time value of money.  To keep this simple, let’s just use $50 BILLION that we gave them.  And let’s assume a 5% yearly return (many treasury bonds pay more than this).  We bailed them out in 2008, it is now the end of 2012, so let’s say 3 years, just to keep it simple.  Year 1 the interest would be $50 Billion * 1.05 =$52.5 Billion.  Year 2 =$55.125 Billion. And year 3 =$57.9 BILLION.  And the interest is not done yet….

So, to sum it all up:  IF the Government sold ALL of it’s shares today the Bailout of Government Union Workers would cost US AT LEAST $55 BILLION, NOT INCLUDING INTEREST!!!  We’ll see what the final cost (IT WILL BE A COST, no amount of “creative accounting” will be able to show this as a “profit”) is in future years.

Which brings me back to my original question:  Are they LAZY, INCOMPETENT, OR EVIL??

How much has the (Union) GM Bailout COST the US Taxpayer??

August 15, 2012

I have written about Government General Motors and the Bailout in the past (all the way back in June of 2011), detailing what the Liar Commander-In-Chief’s Administration has said.  The relevant quote is as follows:

“The Obama administration said Wednesday that the government will lose about $14 billion in taxpayer funds from the bailout of the U.S. auto industry.”

At the time I criticized the analysis.  Needless to say…….I was CORRECT!!!

Here is a recent article from FoxNews, which is titled:

“Taxpayer losses tied to auto bailout rise

Shocked!!!!  I am Shocked I tell you. (sarc off)

So how much do “they” say it is now, you ask??

“And on Friday, the Treasury Department announced that expected losses to taxpayers from the bailout would increase more than $3.3 billion to $25.1 billionup from $21.7 billion last quarter.”

In ONE year the estimate has almost DOUBLED from their initial propaganda estimate!!!  Oh wait….that sounds like the Federal Government.  Have IDIOTS or PROPAGANDISTS make an estimate that is GROSSLY inaccurate in order to start a project and then GOUGE the taxpayers for any “overruns”.  But don’t worry, ObamaCare will ONLY COST $1 TRILLION!!!  Call me skeptical.

AND this number STILL does NOT include the $45.4 BILLION in taxes that have been forgiven in the future!!!  That is….IF they EVER make money again.  And that is a BIG IF!!!

Chrysler repays loans!!!

May 24, 2011

Finally, a story with a happy ending!!!  Chrysler is repaying the loans that the USA and Canada provided for them to remain in business.  A few quotes from the article:

“Chrysler Tuesday paid back $7.6 billion in U.S. and Canadian government loans from its 2009 bailout, a move that allows the U.S. automaker to distance itself from an unpopular bailout and deepen its ties with Italian automaker Fiat SpA.”

“The automaker said it repaid the original loans in full, more than six years ahead of schedule. Under the original terms, Chrysler had until 2017 to repay the debt.”

Isn’t that fantastic!!  Finally Chrysler and its 66,409 employees are finally turning things around.  I had written a previous article that was not to happy with the “bailout” of Chrysler, and I am still not convinced that the loans/bailout + interest have been accounted for.  But, it looks like they have tried to do the RIGHT thing.  One more quote from the article:

“The U.S. Treasury said it continued to hold a 6.6 percent common equity stake in Chrysler, but it did not expect to fully recover its remaining outstanding investment of $1.9 billion in the automaker.” (emphasis mine)

Wait……..by my calculations the 66,409 employees get to keep $1.8 BILLION of YOUR dollars!!!  That is $27,000+ each.  See, don’t you feel better knowing that YOU saved Chrysler, and it ONLY cost you $1.8 BILLION, that the Treasury does NOT expect to recover?  Doesn’t that make you feel good??

And, wouldn’t you know it, the President is HAPPY and telling about the good job he has done!!  I am sure there are at least 66,409 people who agree with you Mr. Obama, however I am NOT one of them.  Do NOT say that you did a good job GIVING my money away!!  Get it back + interest!!

OK, maybe that was NOT a happy ending.  The soonest I see a happy ending happening is 2012!

GE and taxes…..

April 11, 2011

Much has been written/said recently about Government General Electric and the taxes that it has paid, or NOT

It “earned” $14.2 BILLION in 2010 and paid a grand total of $0 in taxes to the United States Government.  In the last 5 years, GE has earned more than $26 BILLION and received more than $4 BILLION in tax credits from the IRS.

Now don’t get me wrong, I understand some of the accounting that goes into a “tax loss carry forward”.  I DO believe that “honest” companies should be able to carry a loss forward, into another year to offset profits, in order to reduce taxes.

However, here is the problem that I am having.  When the latest recession began, as a result of indiscriminate lending, of which GE (through its subsidiary GE Capital) was a HUGE beneficiary, GE Capital provided 40% of the profits of GE.  GE Capital was involved in ALL of the kinds of “shady” loans, CDO’s, etc.  They were using the lax loan standards, approved and being used by all of the other major players, to maximize their fees while limiting their exposure.  Still, they did as poor a job, as all the other major players, or worse.  At that point in time, GE Capital “could” have bankrupted GE.

Then GE used the “Bank Bailouts” (TARP, TLGP, Stimulus, etc.) to the tune of at least $140 BILLION to “save” themselves.  That is, they TOOK money from US, and used it to stay in business and make profits.  And, now they are “using” the losses that they incurred to evade/avoid paying taxes to US.

Here is what I would like to see.  IF a company used the United States Government to remain in business, and to profit from free, or cheap, money loaned to it; then ALL previous losses are negated.  No more shenanigans, those companies will be ALLOWED to say THANK YOU, for saving us and our overpaid jobs, to the American public, and they will pay TAXES on ALL income generated.  Hey, GE let’s call it even and you PAY the taxes that you OWE!!

Let your representative know what you think, and if you think that you do NOT pay enough in taxes, NO ONE is stopping you from sending more.