General Motors CEO Ed Whitacre has bragged in TV commercials and newspaper columns that GM has paid back its bailout “in full and ahead of schedule.”
As with the Pontiac Aztek, an ugly exterior masks an ever darker problem: Whitacre is being fanciful to the point of deceit. GM received $50 billion in TARP funds (never mind that TARP was only supposed to cover financial institutions). About $7 billion of that came in the form of a straight-up, low-interest loan. And about $13 billion came in the form of an escrow account.
So how has GM, which lost $38 billion in 2007 even as it sold 9.4 million cars, paid back its debt? It took money from the escrow account to pay back the $6.7 billion loan.
This isn’t going to end well.
I hope they finally just go out of business. It would save so much money and trouble.
But GM is a bank!
They loan money to people.
By that logic, any failing business that has deadbeat customers is also a bank. Apply for TARP funds!
Yep, they screwed the pooch on that one…
Mother *******!!!!
So…they paid their Visa off with their MasterCard?