GM Repays their government loan!!!...oh, wait a sec

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CPA

CPA

Elite Member
Nov 19, 2001
30,322
4
0
I guess they really didn't

Looks like GM is learning some tricks about "selling" (see healthcare) from our current administration. The monies that they used to repay their TARP loans actually came from......wait for it.....wait for it.......a TARP escrow! So, they didn't repay anything with their own money, the repaid it with taxpayer money.
 
cubeless

cubeless

Diamond Member
Sep 17, 2001
4,295
1
81
every cent they have is taxpayer money... i wonder if the wh helped them formulate the plan to do this or if it was their inhouse marketers...
 
PricklyPete

PricklyPete

Lifer
Sep 17, 2002
14,714
164
106
I still see it as a positive step toward ending government involvement with GM. Sure, the money used came from the government...but the hope being that we still get that back when the company IPO's. We'll see.
 
Hacp

Hacp

Lifer
Jun 8, 2005
13,923
2
81
Paying a loan off with another loan? kind of sounds like paying your credit cards off with another credit card.
 
HumblePie

HumblePie

Lifer
Oct 30, 2000
14,667
440
126
Liquidate and sell off GM. Be done with them. Cut our losses and recoup what we can from this stink fest.
 
C

CycloWizard

Lifer
Sep 10, 2001
12,348
1
81
PricklyPete said:
I still see it as a positive step toward ending government involvement with GM. Sure, the money used came from the government...but the hope being that we still get that back when the company IPO's. We'll see.
Click to expand...
So if I write you two checks, each for $5k, and you simply write one $5k check to me, we're even?
 
zsdersw

zsdersw

Lifer
Oct 29, 2003
10,560
2
0
I'd care about GM if they had any vehicles for sale here in the US that I actually wanted. Vauxhall and Holden, who are owned by GM, make some nice cars, but nothing in GM's US lineup interests me.

.. so I couldn't care less what happens to GM.
 
HumblePie

HumblePie

Lifer
Oct 30, 2000
14,667
440
126
cubeless said:
buwahahaha... the wedge is set... another lib is outed...
Click to expand...

I have no clue what that statement is meant to be. No sarcasm here because I really do not know what you are referring to here and I would it if you would elucidate.
 
cubeless

cubeless

Diamond Member
Sep 17, 2001
4,295
1
81
HumblePie said:
I have no clue what that statement is meant to be. No sarcasm here because I really do not know what you are referring to here and I would it if you would elucidate.
Click to expand...

it's always fun when a person of the people decides that in just this one case they don't give a shit about 00000's of workers... ideology, thy bane art inconsistency...
 
HumblePie

HumblePie

Lifer
Oct 30, 2000
14,667
440
126
cubeless said:
it's always fun when a person of the people decides that in just this one case they don't give a shit about 00000's of workers... ideology, thy bane art inconsistency...
Click to expand...

What I'm for here is for these companies to go under. Since the current cost of entry into the auto making industry is high enough to bar entry, this will finally get a foot in the door to allow others to come in. This is something desperately needed as the current competition is stale and stagnant. While the short term and interim will be hard for workers and everyone, eventually it will balance out. The auto maker market in the US will NOT disappear. There is too much demand. 8 million+ cars sold in the US every year is a major incentive for new companies wanting to get their foot in the door. When it does happen, the market will balance out and hopefully be stronger. Jobs will open up and people will have something to look forward to. Sometimes it takes hitting rock bottom before you can rebuild.

Again, it sucks right now. I think of it like this. We have a broken bone that needs to be set. Setting the bone is going to hurt like hell. However, if we don't set it now and deal with the intense immediate pain, then all we have forward to look for in the future is a lifetime of hobbling pain instead of growing stronger.
 
PricklyPete

PricklyPete

Lifer
Sep 17, 2002
14,714
164
106
CycloWizard said:
So if I write you two checks, each for $5k, and you simply write one $5k check to me, we're even?
Click to expand...

No. Don't get me wrong...I'm not a fan of any of this bailing out for anything. But getting some of the money back that we did let them borrow is a step in the right direction. Hopefully we'll get rest when they IPO. I NEVER said we're even. We won't be even unless the IPO completely pays back all loans. We'll see.
 
PricklyPete

PricklyPete

Lifer
Sep 17, 2002
14,714
164
106
zsdersw said:
I'd care about GM if they had any vehicles for sale here in the US that I actually wanted. Vauxhall and Holden, who are owned by GM, make some nice cars, but nothing in GM's US lineup interests me.

.. so I couldn't care less what happens to GM.
Click to expand...

We're less than a year away from having the Vauxhall Insignia (Buick Regal is an exact copy) and it looks like the Vauxhall Astra is coming over as a Buick as well.
 
T

thepd7

Diamond Member
Jan 2, 2005
9,429
0
0
HumblePie said:
What I'm for here is for these companies to go under. Since the current cost of entry into the auto making industry is high enough to bar entry, this will finally get a foot in the door to allow others to come in. This is something desperately needed as the current competition is stale and stagnant. While the short term and interim will be hard for workers and everyone, eventually it will balance out. The auto maker market in the US will NOT disappear. There is too much demand. 8 million+ cars sold in the US every year is a major incentive for new companies wanting to get their foot in the door. When it does happen, the market will balance out and hopefully be stronger. Jobs will open up and people will have something to look forward to. Sometimes it takes hitting rock bottom before you can rebuild.

Again, it sucks right now. I think of it like this. We have a broken bone that needs to be set. Setting the bone is going to hurt like hell. However, if we don't set it now and deal with the intense immediate pain, then all we have forward to look for in the future is a lifetime of hobbling pain instead of growing stronger.
Click to expand...

Ford is going strong and will be around, especially with the Fusion kicking ass. Hyundai is really picking up the slack as well. GM/Chrysler will probably stick around but won't be dominant.
 
C

CycloWizard

Lifer
Sep 10, 2001
12,348
1
81
PricklyPete said:
No. Don't get me wrong...I'm not a fan of any of this bailing out for anything. But getting some of the money back that we did let them borrow is a step in the right direction. Hopefully we'll get rest when they IPO. I NEVER said we're even. We won't be even unless the IPO completely pays back all loans. We'll see.
Click to expand...
No, it just means the government cut them a second check to allow them to pay back the first one for marketing purposes. Now GM is running commercials claiming to have paid back all of their loans 5 years ahead of schedule.
 
rudder

rudder

Lifer
Nov 9, 2000
19,441
85
91
If GM were allowed to fail... yes it would hurt. But the demand for automobiles will not just disappear. Another better run company will grow to fill the need... meaning jobs.

Same thing with banks. You have a small bank sitting there with excellent balance sheets looking at a huge bank that is taking tax payer money to stay alive. What is wrong with letting that big bank fail and letting the small bank grow into those markets? I am sure Ford would be more than happy to pick up the slack after GM was left to its own devices.
 
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