Bad news is that we, the taxpaying American citizens, will just be out $25 billion. The good news .... it's less than the boneheads thought. Excuse me if I call the good news BULLSH*T! And to think, based on this success, bozo wants to do the same thing to every single aspect of out economy!!!
$25 billion ... Who's paying?
Bankruptcy would have forced the auto manufacturers to renegotiate their labor pensions and contracts. INSTEAD, bozo the idiot used the bailout money to bailout the unions. I hope the union members know that in November, their vote is secret. When they go into the voting booth, they don't have to vote for the idiot again.
August 13, 2012 at 2:32 pm
By David Shepardson
Detroit News Washington Bureau
Washington -The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That's 15 percent higher than its previous forecast.
In a monthly report sent to Congress on Friday, the Obama administration boosted its
forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31,
when GM's stock price was $22.20 a share.
On Monday, GM stock was trading down 6 cents, or 0.2 percent, to $20.49. At that price, the government would lose another $850 million on its GM bailout.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout.
Treasury spokesman Matt Anderson said the costs were still far less than some predicted.
"The auto industry rescue helped save more than one million jobs throughout our nation's industrial heartland and is expected to cost far less than many had feared during the height of the crisis," Anderson said.
The Obama administration initially estimated it would lose $44 billion on the bailout but reduced the forecast to $30 billion in December 2009.
Republican presidential candidate Mitt Romney has decried the losses on the auto bailout and insisted that forcing GM and Chrysler Group LLC to go through bankruptcy first would have saved taxpayers money.
But President George W. Bush — who gave the automakers and their finance arms about $25 billion in his final weeks in office in bailout funds — said there wasn't time.
Taxpayers incurred a $1.3 billion loss on the $12.5 billion bailout of Chrysler. The Treasury also has put on hold an initial public offering initially planned for last year in Ally Financial Inc. because of market weakness. The government holds a 74 percent majority stake in the Detroit auto finance company as part of its $17.2 billion bailout and has recovered $5.7 billion.
GM CEO Dan Akerson told employees at a town hall meeting Thursday that the company was
working to take actions to boost the automaker's sagging price.
dshepardson@detnews.com
(202) 662-8735
Source: http://www.detroitnews.com/article/2...TO01/208130392
Replies