Chevrolet Corvette Stingray C7 Forum - View Single Post - BMW Receives U.S. Federal Support During Economic Crisis

8cd03gro · 12-05-2010, 07:36 PM

The "loans" only totaled to about $6.7 billion. GM doesn't even call the rest a loan. The federal government owns a controlling portion of "new GM." You know that. There is no agreement that the value of the original investment will be returned in full so it is NOT A LOAN. I highly doubt that any analyst expects the fed to recoup all of the original $52 B given to new GM. I'm not talking down GM, these are just the facts. That's why it was and still is so controversial.

Loaning to BMW probably saved a lot of American jobs, just like the loans to GM. BMW is probably contractually obligated to return the loan in full to the fed, with interest. There's nothing abnormal about this. It's a necessary duty of any central bank.

12-05-2010, 07:36 PM	#28
8cd03gro Drives: 2005 STi corn fed Join Date: Jul 2008 Location: Colorado Posts: 2,997	The "loans" only totaled to about $6.7 billion. GM doesn't even call the rest a loan. The federal government owns a controlling portion of "new GM." You know that. There is no agreement that the value of the original investment will be returned in full so it is NOT A LOAN. I highly doubt that any analyst expects the fed to recoup all of the original $52 B given to new GM. I'm not talking down GM, these are just the facts. That's why it was and still is so controversial. Loaning to BMW probably saved a lot of American jobs, just like the loans to GM. BMW is probably contractually obligated to return the loan in full to the fed, with interest. There's nothing abnormal about this. It's a necessary duty of any central bank.