11-04-2010, 01:42 PM | #1 |
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WHICH IS IT? DO THEY OR DON'T THE STILL THE GOVERNMENT
I read on here all the time about how GM paid back their dept to the US government ,but every time I read else where like Autoline Detroit or watch the news they still comment on how GM still owes.
Just this morning I watched Fox and ABC. They both had stories about GM going public and both said they Still owed the government $400,000,000 dollars. So really, what is the real story here. Please don't turn this into another Political thing about how we bailed out GM. We already know the story. I just don't get the conflicting stories I read all the time. |
11-04-2010, 02:08 PM | #2 | |
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Quote:
http://www.cnbc.com/id/39993982
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11-04-2010, 02:15 PM | #3 |
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This gets confused all the time and needs to be clarified.
GM got a loan from the Government. Additionally the Government bought a portion of GM. The loan was paid off, however the Government still owns a substantial piece of GM. That's the 33billion part. The loan was paid off, now they want to sell the company out to individuals as a stock IPO so the government can get their money back. GM technically doesn't 'OWE' this money, since it's not a loan.
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11-04-2010, 02:20 PM | #4 | |
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11-04-2010, 02:21 PM | #5 | |
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GM does not need to pay anymore money from their bank accounts. |
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11-04-2010, 02:24 PM | #6 | |
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11-04-2010, 02:28 PM | #7 | |
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11-04-2010, 02:30 PM | #8 | |
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Edit: OOps, a-username kind of beat me to it.
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11-04-2010, 02:33 PM | #9 | |
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11-04-2010, 02:39 PM | #10 |
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Let me rephrase that slightly- I believe the common man doesn't get enough credit for what he can learn. However I keep seeing people who know more about what's happening on the Jersey Shore then they do about REALLY basic economic principals. It was recently determined that the largest source of "news" among people 18-34 was Jon Stewart. No offense to Jon Stewart, he's a fine comedian, but what do you do with that?
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11-04-2010, 02:45 PM | #11 | |
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11-04-2010, 02:47 PM | #12 |
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>>>I keep seeing people who know more about what's happening on the Jersey Shore
Well put...... very sad.... but very true!
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11-04-2010, 11:47 PM | #13 |
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Ford, GM and Chrysler all took low interest loans from the government, but GM and Chrysler needed to get relief from their creditors and declared bankruptcy. The government bought out the creditors of GM for stock and will recoup a portion of that money at the upcoming IPO. Ford and GM have repaid the low interest loans and don't "owe" the government any money, but the bailout portion is typically used as the amount that GM still "owes" the government. If the IPO fails to generate the kind of money the government spent, people will once again howl about how GM isn't paying back the taxpayers.
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11-05-2010, 12:56 AM | #14 |
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Owing money means that there is some specified amount that you've got to pay back. Under that definition, GM doesn't owe the US government any money from the bailout or the subsequent post-bankruptcy loan (thats the one the paid back in the spring). At least, General Motors Company doesn't. I think Motors Liquidation Company (formerly General Motors Corporation, aka Old GM) might have that debt on their books. But even if they are supposedly responsible for it, they're not going to be paying back a whole lot if it. They've got a bunch of other debts to be paid as well, and not a whole lot of assets to pay it with. And for that very reason, the US, Canadian, and Ontario governments (plus the UAW's VEBA fund) took ownership of the brand spankin' new General Motors Company. The intention is to get back an amount roughly equivelent to the amount each one was owed by 'Old GM' when they sell off their portion of the company.
But nobody can predict just how much they'll get from selling their shares. Might be 50% of what they were owed (which is still a lot more than what they'd get if GM liquidated last summer). On the other hand, it could work out to 50% more than what they were owed (expect that to happen the day after GM announces the Z28 MSRP to be $9,995 + destination).
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__________________ Originally Posted by FbodFather My sister's dentist's brother's cousin's housekeeper's dog-breeder's nephew sells coffee filters to the company that provides coffee to General Motors...... ........and HE WOULD KNOW!!!!__________________ Camaro Fest sub-forum |
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