Apparently, the bailout of the automobile companies is the gift that keeps on taking…
“The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That’s 15 percent higher than its previous forecast.
In a monthly report sent to Congress on Friday [August 10], the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31, when GM’s stock price was $22.20 a share.
On Monday [August 13], GM stock fell $0.07, or 0.3 percent, to $20.47. At that price, the government would lose another $850 million on its GM bailout.”
A billion here, a billion there — pretty soon you’re talking real money.
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On Friday Aug. 17, GM shares closed at $22.01.
Don’t worry: the unions will be just fine.
How much did we pay for each vote for the Democrats?
This is Tammany Hall on steroids.
There’s speculation GM will again face bankruptcy soon. The illegal Obama restructuring benefitted the union, while cheating the white collar employees and retirees, and other investors. It did nothing to help GM become leaner.
Good thing GWB gave the automakers $25B before he left office. In any case shouldn’t we all go out and buy GM cars? Good for the stock (we are all investors in it), good for jobs for American workers, good for the economic recovery. Ahh, sorry…..wrong message.
Typical. Suggest everyone go out and buy a GM car even if they don’t need it? Even if they can’t afford it? Even if a particular model’s quality rating might be lower than a Ford or Honda? Costs more? Logic be damned … buy a GM!
And send your money to China!
Then borrow it again with interest!
What if you need a car? What if you can afford it? What if it costs the same as a Ford or a Honda? What if you simply like a GM product? What is you get better financing? Logic be damned too?
Logic? Are you kidding me? You just wrote – and I quote – “shouldn’t we all go out and buy GM cars.”
I’ve owned a GM car. It was a total piece of crap after 60,000 miles, and back then I even took it to the dealership I purchased it from for regularly scheduled maintenance. They treated me like crap and I had to pay for known defects that were documented. Not only did I pay for significant repairs once, the same repairs had to be done again after 13 months … sorry, no coverage. Therefore, no more business from me period … bailout or not.
Steve, back when we were first married, my husband used to travel to GM in Windsor, Ontario. He was there installing garment cutting equipment for the upholstery. He spent the better part of a year going back and forth from CT to Canada.
He was regularly threatened (physical harm) by the union employees, they intentionally held up progress by being slow and argumentative. They stole all of his tools which he had to buy himself — and then replace himself. That said, I think if I ever suggested to him that we buy a GM car he would laugh his ass off.
Just because Obama’s bailout didn’t work, doesn’t mean we should all come to his and their rescue to drive up stock prices for a company that should have been allowed to fail (and would have, I might add).
And by the way … people can and should buy whatever they want.
Right, people DO buy what they want and a lot of people buy GM. I really feel bad that you had a bad experience w/ a GM car.
And now, with this losses incurred by this “bailout”, we ALL have had a bad experience with GM.
Except the union, of course. And that was the plan.
The more politicians use taxpayer’s money to bail out mismanaged businesses and buy union votes, the less money taxpayers have to buy anything. Hint to politicians, businesses and unions – This fractured fairy tale comes with the following warning / life skill: “Do not bite the hand that feeds you” / “Don’t kill your customers.”
It looks like the investors will get screwed twice by GM. Nice.
I think it was by Congress with a little help from our friend, President Obama.