GM pays back US & Canadian loans way early

[ssump29]

Originally Posted by Sax1031

We are not guaranteed to get all of our money back.

From what I understand GM has to be doing better than they have ever done in their history for us to get all of our money back when the equity is sold off.

For one it ain't my money, I paid my taxes to the government and they used that money for what they felt, so let's get that understood now. I treat taxes like another expense to live, if I want to live good I have to the line the pockets of the government simple as that.

Another it was US the people who got us into a recession. Quit blaming the banks, yes they took risk but the people taking advantage who had no business doing so deserve just as much fault. Building houses that were to big and couldn't afford unless they got an Variable APR and never thought about when the adjusted rate hit. Just spending every dime that comes in. The people with no self control deserve just as much if not more blame to why a lot of people went broke.

[alrox]

Originally Posted by FenwickHockey65

Glad to know you sat in on those meetings at the Ren Cen.

I'll take your Corvette off your hands too, by the way. I wouldn't want you to have to suffer the shame of driving a product built by such a horrible company.

I didn't know resorting to sarcasm would blind and numb you to the reality of massive government fraud.

[vsound]

Originally Posted by ssump29

Quit blaming the banks, yes they took risk but the people taking advantage who had no business doing so deserve just as much fault. Building houses that were to big and couldn't afford unless they got an Variable APR and never thought about when the adjusted rate hit. Just spending every dime that comes in. The people with no self control deserve just as much if not more blame to why a lot of people went broke.

I agree with this, but it wasn't *just* the housing bubble's burst.

A lot of crap went down at once, and poor management of these companies was a decent sized part of the problem.

[Xanthos]

GM requested the federal bailout money in a time of hardship. When they received that money, a certain amount of it was given as a loan (unsecured, to be repaid) and the rest was treated as a government investment in the company in the form of stocks. GM did not have to use the entirety of the money from the loan portion before they got to the point where they felt they were profitable enough to use that and some of their cash reserves to repay the remainder of the loan. I really don't see how this is a problem in any way.

Say I, as an individual, go to the bank because I'm having trouble with bills. I request and am approved for a 1500 dollar signature loan on a 12 month term. I take that loan, use 600 of it for bills, and set 900 aside in a savings account in case I need it while I get back on my feet. I then proceed to pay off the signature loan without touching the 900 in that savings account. Awesome!

Alternatively, lets say two months into the loan term I get back on my feet enough that I feel comfortable covering my expenses without that "rainy day" backup fund. The remaining balance on the loan is, for the sake of discussion, 1300 dollars. I take that 900 dollars, plus 400 dollars of money from my income (or anywhere, really) and pay off the signature loan. How is this any different, aside from the balance of my bank account after payoff and the time between disbursement and payoff?

Honestly, I don't see why anybody is upset by this. GM paid back the money they borrowed early at the expense of their total cash reserves. Only time will tell if it was a good decision for the company, but it is nothing but good news for the government.
- X

[zen]

I tried to make that point yesterday on the other thread.

[Supermans]

Originally Posted by 1bad65

Not to be rude, but what in the world does that mean?

And the unions were the main cause. Another thing the Big 3 did was 'backend' the autoworkers compensation packages. Instead of just giving large per hour raises when the unions demanded more, management often agreed to bigger healthcare and bigger pension plans. So each year as the workforce aged, and thus more and more workers retired and got older, labor costs went up. And not only did they go up, but the retired guys receiving the large pensions and healthcare benefits were no longer producing anything for the company.

One of the reasons Ford did not need a bailout was that several years ago they made a deal with the UAW that was better for them than the deals GM and Chrysler had with the UAW.

[Hylton]

Originally Posted by FenwickHockey65

Fox News has Julie Banderas.

Strong!

[Hylton]

Originally Posted by ssump29

As long as every cent comes back then yeah I don't care. I'm not losing anything by giving you let's say 10,000 and then two weeks later you pay me back with the same 10,000. I still got the exact amount back.

But it isn't that way. In this scenario, you lent out 10,000 and then I came to you again to borrow another 10,000 to pay off the first 10,000. You are still owed 10,000!

This brings up a question - we know that GM has 65 billion dollars of taxpayers bailout money. How much TARP money has it added to that? Obviously at least 5 billion.

[Supermans]

Originally Posted by Dragoneye

Yet many European countries...like Germany, or Japan for example...who are proud to buy their own stuff and create tariff laws accordingly -- seem to be doing okay for themselves.

I'm no economist, but I certainly don't see a need to whore out our marketplace to the world when most others keep a protective eye on domestic product.


:( You should be ashamed for misleading yourself....

Their name is not "Government Motors", because calling them that seriously requires you to ignore a lot of facts...

And the only thing in that ad was an announcement that they repaid the loans, and are better for receiving them. They did not tell the 'whole story', arguably because it would take a half-hour to deliver a simple summary of events...and TV commercials are expensive.....

But they didn't lie or mislead anyone on a single point.

General Motors has borrowed money from itself to pay itself. The Government can do things like that and spin the news as positive and convince countless people they have re-paid the loan.

With business practice like this, we should be proud to call GM Government Motors. So not telling the whole story is saving us taxpayers money and is a good thing as well. I see how this works. Not having transparency in Government as promised in the campaign has now turned into saving taxpayer dollars by not explaining everything fully. I see how this works now.

General Motors..Government Motors.. to me it is the same thing at this point and why you feel anyone should be ashamed to call GM that is beyond me. Especially if you support what the Government is doing, the name Government shouldn't be viewed as a negative in your eyes.

[ssump29]

To tell everyone the truth I could CARE less and you should to what GM does with THEIR money. If you want to bitch about a 65bilion loaned to them by the government that will get paid back sooner or later then you have a problem. And if it doesn't who cares, its not going to affect you but what is going to affect you is this TRILLION some dollars for health care reform.. Worry about the big issues not these small peas in the gallery.

My piece has been said, hope everyone quits worrying about them making payments.

[Supermans]

Originally Posted by ssump29

To tell everyone the truth I could CARE less and you should to what GM does with THEIR money. If you want to bitch about a 65bilion loaned to them by the government that will get paid back sooner or later then you have a problem. And if it doesn't who cares, its not going to affect you but what is going to affect you is this TRILLION some dollars for health care reform.. Worry about the big issues not these small peas in the gallery.

My piece has been said, hope everyone quits worrying about them making payments.

Trust me, I worry about everything.

[Sax1031]

Originally Posted by ssump29

For one it ain't my money, I paid my taxes to the government and they used that money for what they felt, so let's get that understood now.

I am sorry if you don't care at all about what the government does with OUR money.

[ssump29]

Originally Posted by Supermans

Trust me, I worry about everything.

Then you are in for a long and stressful life. Worry about what you can control, not other's issues.

[Sax1031]

Originally Posted by ssump29

And if it doesn't who cares, its not going to affect you but what is going to affect you is this TRILLION some dollars for health care reform..

I thought you said you didn't care what the government did with their money?