Yep, Governemnt Motors repayment fraud and how it was accomplished is
below. Now how can you trust the GM CEO?
And know this is only GM.new, GM.old and GMAC are still sucking ahrd
too. Total GM price tag is closer to $100 billion and counting.
General Motors lost $3.4 billion in the fourth quarter of 2009 and is
still struggling to reorganize so the company can try to eke out a
profit. This grim reality didn't stop GM from making hay last week for
supposedly paying back a $6.7 billion government loan five years ahead
of schedule. What was left unsaid was that the automaker used another
kitty of taxpayer cash to pay off the earlier government loan. This is
an accounting shell game, not progress.
Previously unreleased documents supplied to The Washington Times reveal
that GM specifically used funds it received from the Troubled Asset
Relief Program to pay off the government loan. According to Neil
Barofsky, the special inspector general for TARP, $4.7 billion of $6.7
billion - 70 percent - of what GM paid back came from TARP money the
company received. "The one thing a lot of people overlook with this is
where they got the money to pay the loan," Mr. Barofsky told Fox News'
Neil Cavuto on Wednesday. "It isn't from earnings." The numbers are
based on a quarterly report Mr. Barofsky's office provided to Congress
Jared Bernstein, chief economist and economic policy adviser to Vice
President Joseph R. Biden Jr., disputes the special inspector general's
findings. "That is not correct, I don't think that is correct," Mr.
Bernstein told The Washington Times. "[General Motors] repaid with funds
from their own cash accounts, from their own earnings." The cash used by
GM to pay back the loan "is the property of General Motors, there is no
question about that," he insisted. Some of the money used to pay off the
loans may have originated from TARP funds, but "it is really hard to
know," he equivocated, because the funds are mixed together and "it is
like trying to put an omelet back together again."
The Treasury Department's press office also disagreed with Mr.
Barofsky's characterization that GM paid off one credit line with
another credit line. The watchdog, however, won't budge. When asked how
to tell whether the $4.7 billion used to pay off the government loan
came from TARP funds and not some other source, a spokesman for the
Special Inspector General's Office explained: "We have a letter from
General Motors requesting that they take the money out of escrow and pay
the other debt down. And the money in the escrow was clearly TARP
funding." That letter has been released by the Special Inspector
Despite misleadingly rosy propaganda fed to the press, the sad saga of
General Motors' transformation into Government Motors continues. As a
ward of the state, GM has to do the bidding of its Washington masters
and stay in lock step with the Democrats' claims about the company's
condition. The truth is that GM's condition remains poor.
The only reason the company has been able to pay off its government loan
is because the Obama administration has given GM more money than it has
been able to spend. Hence, proceeds from one loan are sitting around to
be used to pay down another loan. That's hardly evidence that GM has
been a good investment. To the contrary, the shell game makes clear that
the Obama administration is wasting billions of taxpayer dollars on a
carmaker that is careening toward a cliff.
Smart socialists know they need capitalists to pay for it.
Trouble is there are not that many smart socialists.
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