U.S. boosts estimate of auto bailout losses to $23.6B

Superfreak said:
I agree with Oncelor that the disruption to the suppliers would have wrecked havoc in the short term. Given the state of the overall economy, as much as I hate government action like that, it was necessary to stop the bleeding. That said, Ford ended up coming out at a disadvantage due to its NOT needing to be bailed out. Chrysler received bailout money just like GM.
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imo, we should have allowed the bleeding. falsely propping up a market, take rental assistance, doesn't truly help the situation and in the long term makes it worse. they should have been allowed to fail and new companies strong enough to survive allowed into the market place.
 
Superfreak said:
No, they did not. They were GIVEN it.
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No, they were not. GM had a $20 billion obligation to the UAW.


Superfreak said:
Because again, the government did not make the loans guarantee return of tax payers money with profits.
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It wasn't really a loan. The government bought stock and some debt owed to GM.

Superfreak said:
That would be one way. In no way should other stockholders receive dividends while the tax payer loses money. Especially the unions who received stock they should never have received.
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Well, GM hasn't paid dividends. I really do not know of any way that you could structure the deal such that the government is guaranteed a return of its initial investment. I just don't see how it could be done.
 
Yup Obama bet on solyndra and the Chevy volt. Volt is only selling 50 percent of its limited production. Government is a terrible investor.
 
Superfreak said:
I agree with Oncelor that the disruption to the suppliers would have wrecked havoc in the short term. Given the state of the overall economy, as much as I hate government action like that, it was necessary to stop the bleeding. That said, Ford ended up coming out at a disadvantage due to its NOT needing to be bailed out. Chrysler received bailout money just like GM.
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Ford supported the GM and Chrysler bailouts.
 
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