US Government Sees Recovery of GM Bailout Money, Less Confidence in Chrysler

[The_Blur]

The US Treasury flung open the doors for GM to take billions to stay afloat. Now, an economic advisor for the current administration with confidence that "most, if not all" of the bailout money will be returned to the government. The official government estimates are substantially more grim, but the likely reason for such a low outlook is for higher return to be seen as a surplus as opposed to a deficit. The article correcly points out that the remaining balance the government spent on GM is held in a stake of ownership, not loans. This means that GM has covered its required loan payments as announced. The remaining value will return to the government whenever the government decides to sell its stake in GM, likely during the initial public offering expected later this year.

If this isn't compelling enough evidence that GM is on the right track, the US government has indicated that it may lose as much as $1.9 billion as a result of the Chrysler bailout. Chrysler still owes $1.6 billion in loans despite entering and exiting bankruptcy before GM. The US government has a substantially smaller stake in Chrysler, presumably reflecting that the government has less confidence in its recovery.

Both articles are by Leftlane News. Discuss.

[UCI CamaroFan]

My take on it:

http://www.camaro5.com/forums/showth...72#post1869772

[a_Username]

This article states that the BANKS will be responsible for paying any money lost on the automotive industry's bailout. There are also two conflicting articles that have been released recently on GM or Ford being more valuable. The article stating GM is more valuable has been met with criticism since its release. This critic says the author's, Tom Walsh's, conclusion is too circumstantial to become true and believes that Ford is more valuable.

I'd have to agree with the Niedermeyer, the TruthAboutCars author, in saying it's too circumstantial to be making the claim that GM is more valuable than Ford. However, GM is on the right path to making Walsh's predictions come true.

[ron10]

interesting.

[LOWDOWN]

This was touched on, on another thread last night...

As was said, before, "Loans Paid in Full" is the same as repeating "Mission Accomplished"...

Even that authoritative news voice, FOX NEWS, doesn't swallow it...TARP funds, used, is OUR money, not GM's...it's a shell game...

[a_Username]

[Mr. Wyndham]

Originally Posted by LOWDOWN

.TARP funds, used, is OUR money, not GM's...it's a shell game...

TARP funds were given TO GM in exchange for stock...it is now THEIR money to do with it as they will. They used it to pay off loans. Of course...it can be spun the way you present it, too......whatever flavor you like best, I guess.