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GM Asked To Pay Back $10 Billion Bailout Costs
Topic Started: Dec 17 2013, 01:01 AM (1,110 Views)
campingken
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Ban,

Had GM stuck to what they knew there probably wouldn't have been a need for the bail out. However they decided to get into the mortgage market and bet the house on the Hummer rather than a hybrid or other high MPG vehicle.. Too often I hear that it's the union's fault but I doubt if the union had anything to do with these decisions.
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Mountainrivers
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campingken
Dec 19 2013, 04:05 AM
Ban,

Had GM stuck to what they knew there probably wouldn't have been a need for the bail out. However they decided to get into the mortgage market and bet the house on the Hummer rather than a hybrid or other high MPG vehicle.. Too often I hear that it's the union's fault but I doubt if the union had anything to do with these decisions.
Gm's head honcho says the reason they aren't going to pay back the 10 billion is because the government chose to take stock in the company and it should accept the same risk as any other investor and if it did pay it back, it might invite law suits from other shareholders. I guess that's logical, but I still think Gm should pay us back.
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Banandangees
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I'm sure GM's problem was mismanagement in one form or another. If it's true that it was the government that decided to give the loan in the form of "buying stock," and I have no reason to doubt you on that, surely someone in our government's finance and economics "divisions" must have known the ramifications of "buying stock," especially when you're buying it with someone else's money. Or, perhaps they knew and did it in this way to give GM an out... a reason to for GM management to say what you said they said.... law suits from other investors.

But, either way, the tax payer still comes out on the short end of the stick..... I suppose I should say, the future tax payer. We keep piling on a debt that they will be carrying for quite some time.... like a dead skunk tied around their necks. Put another way, you could use the words of my good friend Josie Wales, "Dying's not much of a living."
Edited by Banandangees, Dec 19 2013, 05:23 AM.
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Mountainrivers
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Banandangees
Dec 19 2013, 05:22 AM
I'm sure GM's problem was mismanagement in one form or another. If it's true that it was the government that decided to give the loan in the form of "buying stock," and I have no reason to doubt you on that, surely someone in our government's finance and economics "divisions" must have known the ramifications of "buying stock," especially when you're buying it with someone else's money. Or, perhaps they knew and did it in this way to give GM an out... a reason to for GM management to say what you said they said.... law suits from other investors.

But, either way, the tax payer still comes out on the short end of the stick..... I suppose I should say, the future tax payer. We keep piling on a debt that they will be carrying for quite some time.... like a dead skunk tied around their necks. Put another way, you could use the words of my good friend Josie Wales, "Dying's not much of a living."
I searched for a reason for the stock buy instead of it all being a loan but couldn't find anything to explain it. I presume we're stuck with the decision now. The taxpayers no longer have an interest in GM. However, I still contend that it was a good deal for everyone, even us taxpayers. The company is thriving at the moment, lots of people are working instead of drawing more money out of the taxpayers and even if GM isn't paying taxes, their employees are and all the peripheral companies are still in business, paying taxes, as well as their employees. All in all, I think it was a good investment.
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Thumper
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jcapps
Dec 17 2013, 07:15 AM
Brewster
Dec 17 2013, 07:14 AM
And how many jobs will you create/save, Neut?
One job for a fourteen year old making sunglasses in a Chinese factory
:bounce:
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Berton
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Argumentum ad hominem

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