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Originally Posted by 1bad65
Actually the guy is 100% correct. GM paid off bailout money with other bailout money, and the CEO tried to hoodwink the public. As for the Government getting stocks for the money, this is true. But no one besides the Government would have touched that stock, it was junk. So the Government literally bought junk with money they don't have in the hope it will become valuable.
Look at Newsweek. Just this week they were sold for $1. Of course the buyer bought it hoping to turn it around (and he now owns the debt as well), but he didn't have to pay millions for a company in the red like the Government did, he got it for $1.
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I agree 100% that GM paid off bailout money with other bailout-related money.
But what actually happened was that GM paid off their loan with money from the stock sale. That money belongs to GM with no strings attached other than the government getting a profit or loss depending on how the stocks do. Just like any other investment. They are completely within their rights to use investment money to pay off a loan. GM didn't "hoodwink" anybody. They paid off their loan, early and with interest, and stated as much.
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