Quote:
Originally Posted by Unfair
They got 35 billion and paid back 8, I don't get how the loan is paid off? maybe my math is messed up lol 35 - 8 = 27?
|
Several of you have posted this same response multiple times in multiple threads.
I will, therefore, respond again. The US and Canadian governments have opted to, instead of receiving cash for their support, take a stake in the company. They believe that GM will be profitable and successful—so successful in fact that this stock will be more valuable than the interest rate on the loan that would have been offered. When sold, the government expects to get this money back.