Obamanomics and disappearing money

Lets see, where can you get $62 billion in taxpayer debt funded money, and pay pack only $8.1 billion. And GMAC, Delco and others is extra
debt for the taxpayer.
The bank of Obama... LMAO.
And losing money and paying us back? Betch that was our money in the first place.
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Time to ask, is our government serving us or are we serving the government?

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The theory is that the other billions went to buy the 60+% of GM that the US Government now owns. Also part of the theory is that eventually GM will be worth owning and the Government can sell off GM and get this money back. It is just a theory at this point. Depending on which news channel you listen to, it is either a pie-in-the sky dream, or likely to happen. I'll bet teh UAW sells it share first.....

Accounting is such a dark art, who knows where the money came from, or even if it was actually paid back....
Ed
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On 22/04/2010 5:30 AM, C. E. White wrote:

Its all BS. GM is still losing money. Swapped some preferred shares for cash is all they did. We are on the hook again. Note how GM now has preferred shares that quiety showed up. They issue them, and pay back the cash for PR.
Total bullshit. Corruption at it's finest.
So Obama is betting the farm on GM? Sorry, that is insane and corrupt.

Ageed, it is Obamanomics where economics fundimentals mater not. Bankrupt USA...
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Who cares whos money it is if it is paid back with interest how can that be bad, if the govt gets most of it equity back when GM sells shares and it saves thousands of tax paying jobs is that bad or would your want more money to go china and japan etc. TOM?????

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Tom wrote:

GM took $60B or so of bailout heroin and repaid $6B or so? GM pays back 10 cents on the dollar and they, and you, call that repayment? YOU ARE NUTS! That is outright theft.

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Where did you get that idea GM paid 10 cents on the dollar? GM paid back the TOTAL amount of its loan, PLUS interest, dummy.
Before you chose to comment on a subject, the facts of which you apparently have little or no knowledge, you should first do a proper search for the facts. If you did then perhaps your comments would not sound so foolish, so often

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Is that Obamanomics? Misplacing the money? LOL.
I hear you are getting a VAT tax, LMAO. You idiots think all this bailout corrupution is free. Are you now so screwed.
On 22/04/2010 8:58 AM, Mike Hunter wrote:

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Once again our friend Canuck57 proves he has no idea what he is talking about, so he is trying to change the subject.

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On 22/04/2010 8:30 AM, Jim_Higgins wrote:

I will give GM this, they finally paid someone 5 cents on the dollar. (Lets not forget GMAC being sucked dry).
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Once again our friend Canuck57 proves he has not idea what he is talking about.
Acutely GM paid back 100% of it loan from the feds, with interest. The feds hold Preferred Stock, that is worth MORE than the amount of the TARP funds it received, as collateral for the balance due the feds.

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I just saw this...
From http://www.autonews.com/apps/pbcs.dll/article?AID=/20100422/OEM/100429927/1216 :
WASHINGTON -- General Motors Co. repaid its $4.7 billion federal loan this week with other U.S. funds, creating nothing more than a "money shuffle," a Republican senator said today.
Sen. Charles Grassley of Iowa, the senior Republican on the Finance Committee, cited an auditor's report that GM repayments were coming from U.S. Troubled Asset Relief Program funds in an escrow account, rather than from GM earnings. The U.S. Treasury and GM disputed aspects of Grassley's claim.
"It is unclear how GM and the administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way," Grassley said in a letter to Treasury Secretary Timothy Geithner. "The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government's ability to sell GM stock in the future."
Less than a year after filing for bankruptcy, GM yesterday paid off the last $4.7 billion in U.S. loans and $1.1 billion in Canadian loans.
GM received a total of about $50 billion of U.S. assistance in its bailout, much of which was converted into stock. The U.S. Treasury Department holds 61 percent of the common stock of the automaker.
The company is preparing for an initial public offering that would let the U.S. government reduce its stake.
Treasury said today that GM repaid its loan from its own cash account that was part of the government's overall investment.
"This account was expected to be used for extraordinary expenses, and the fact that GM has decided that it does not need to reserve these funds for expenses is a positive sign for our overall investment," Treasury spokeswoman Meg Reilly said.
GM repaid the loans ahead of its self-imposed June 30 deadline, she said.
GM spokesman Greg Martin deferred to Treasury's response. He said that the company decided to repay the loan early "because we believe we have a sufficient cash balance and it's important for the company to pay back its debts as soon as possible."
The audit cited by Grassley was reported to Congress this week by the TARP inspector general, Neil Barofsky.
The source of funds for GM's loan repayments "will be other TARP funds currently held in an escrow account," the Tuesday, April 20, audit report said.
The audit cited GM's own filing with the government in November. GM said then the loan repayment would come from leftover funds set aside by the Obama administration to finance GM's fast-track sale out of bankruptcy in July.
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I guess I still don't understand, you loan me 100 dollars I keep it for a year for emergency funds find out it didn't need it and pay 110 dollars back to you and that is bad. if I give 100 dollars to the bank and in 1 year I have 110 dollars in my account and take it out, isnt that my 110 dollars????
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On 23/04/2010 4:10 AM, Tom wrote:

What happened is GM has cost well over $60 billion and is paying back $6 billion.
Will you loam me a $100 and I will happily pay you back $10?
And that is before we add the collateral costs of GMAC, Delco and others not accounted for at all, which would drive GM corruption costs right pat $100 billion. If we include bond holders and everything, GM inept corruption will costs someone somewhere over $200 billion so far.
Gm, they keep on sucking.
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Once again our friend Canuck57 proves that he no idea what he is taking about. He obviously failed Economics. LOL

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GM borrowed 6.7 mil and paid back 8.1mil for a profit for the gov. The balance is debtor in financing and most will be recovered when the IPO is issued and the govt and uaw sells its stock, how much is returned depends on the timing and value of the sail, please include this in your misinformed posts. Don't be a media expert and only post the things that look bad or fit your idea of the facts as someone said the Truth will set you free. Gm has cost me more money than you will ever lose yet I still want them to profit for the sake of American jobs if this is lost it will never come back, there are just so many burger flippers needed
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Our friend Canuck57, talks out of his a$$ in this NG almost every day. When one tries to set him straight it just goes over his head. LOL

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GM "sold" the fed Preferred Stock, as collateral for the TARP funds it received. That is why the feds "own" part of GM. How they use those funds, obtained from the sale of stock, is immaterial to paying off the separate federal loans, on which it was paying interest.
It would be like you paying off a credit card, with the processed of something you sold, to save the interest you would be paying on your credit card.
In both instances, it would be a good accounting move to reduce ones total dept, by saving on the amount of interest paid.
The fact is the feds will earn a "profit" on the Preferred Stock, when GM goes public later this year, and GM must buy back the Preferred Stock with the proceeds of the Common Stock sale. Economics 102.

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On 23/04/2010 8:59 AM, Mike Hunter wrote:

Let me correct your bullshit.
When GM went bankrupt preferred shares were wiped out. After bankruptcy GM created ne preferred shares and then paid back the loan while lossing more taxpayers money.
This is a debtors shell game, and taxpayers are getting ripped off again. As it is taxpayers money collected on new worthless preferred shares no one in the entire world would buy but Obama.
Lend me $100 and I will pay the debt off with $10... loan me money?

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As one would expect, you are wrong again, the Preferred Shares are from the new GM, not the bankrupt GM, dummy. How else do you think the feds could "own" part of the new GM?

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That is what I said dummy. GM created new ones and paid off the loan from the proceeds. A paper trick, shifting the debt from TARP to preferred shares. No debt was actually cancelled. In fact it increased to cover current losses to polish the turd for public consumption.
Fraud actually to call it GM pays it's loan. Just shifted the debt and more to preferred shares in a worthless company.
They keep on sucking...
On 23/04/2010 5:32 PM, Mike Hunter wrote:

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