To pay that 4.7 Billion dollars, they drew that money from an existing line of credit from TARP funds in a Treasury escrow account. The problem is, that draw down means that they now owe that money, but to another source. It's just like paying off a credit card by putting the amount owed on another credit card.
Biden called that move a "huge accomplishment".
Presented for your consideration..
Did you hear the good news? GM is ?repaying in full? its loans from the U.S. and Canada, and almost five years early. Let?s break out the champagne and celebrate the comeback of the century! Looks like the taxpayer bailout of GM and the UAW was a success after all.
Are you kidding me? C?mon! They must think we?re all idiots with short memories. The entire notion that GM can repay anything is laughable at best. Ed Whitacre, GM?s CEO, was all aglow this week in an op-ed piece in the Wall Street Journal as he described the great condition of the new company ? or should I say our company since taxpayers own about 60 percent of it.
He forgot to mention the $52 billion bailout from the U.S. government, i.e. you and me, and $9.5 billion from the Canadian government. Then there?s that little matter of Congress allowing the company to change $43.3 billion of our $52 billion loan into equity (stock) in the company, therefore taking the loan off the books. This left just a $6.7 billion loan from the U.S. and $1.4 billion from Canada, which they recently have repaid with some of the $43.3 billion in equity investment.
Look carefully at that last sentence again. We were literally repaid with our own money. I?ve seen shell games that were less rigged than that. To use a very technical economic term, we got taken to the cleaners.