GM Email...Anyone else get this?

[The_Blur]

Originally Posted by sprtplt

Except that it is a lie. They borrowed 52 billion and are paying back less than 6 billion. Claiming they have repaid the loans in full it a blatant lie. They are using this already in their advertising and I think that is very shady.

GM will be paid back for the investment in stock, so GM has technically already repaid that debt. Therefore, all loans have been repaid.

Originally Posted by WongBob

Wait wait wait wait... so to pay of the other $45 billion they are going to sell their debt to us in the form of stocks??? WTF! Thats like screwing the people twice!

I was all for it until I started thinking about it. Its gonna be great for the company, but I think out government is helping GM pull a fast one.

This was the choice of the government, not GM. Let's avoid politics when discussing this subject.

From a business perspective, the best, most profitable plan would be to have an initial public offering (IPO) in the near future and slowly sell government stock as the value rises.

[FinMan]

The selling of new shares to the public will pay off the debt. That's the good news. The moral hazard created with the bailout, right or wrong, will last decades.

[thesnoopster]

I got the email ..... well at least they paid some of it off....which is good

[WongBob]

Is anyone picking up what I'm putting down? WE gave them the money to bail them out... now WE are going to pay their debt to US off.

Does anyone else see what I'm seeing?!?!

Dont get me wrong... I own nothing but GM products because, well, they are simply the best, but they are double dipping hard on this.

I would also like to personally thank the engineers at Toyota for assisting GM in paying back this loan by making more than a few defective cars.

[Bbrock25]

I swear guys I'm not Paul! It is a rather odd mixup.

[sprtplt]

No, all loans have not been repaid. The taxpayers are on the hook until GM goes public again and shares are sold. The highest market cap ever achieved was when GM stock was $94 a share in 2000. No one believes it will ever get near that again. The UAW obligations alone will see to that.

[The_Blur]

Originally Posted by FinMan

The selling of new shares to the public will pay off the debt. That's the good news. The moral hazard created with the bailout, right or wrong, will last decades.

GM's success shows that the risks posed by bailing out a large company can be a positive thing when that company actually turns around the way it does business. GM is a sleeker, better company, and the products coming out of the new GM are impressive and profitable.

You're completely correct to point out that this was a dangerous decision. It was dangerous to bail out a company, and it would have also been dangerous to just let all of those employees—GM employees, supplier employees—lose their jobs. Keep in mind that multiple manufacturers use some suppliers. If a large percentage of their business goes away, other manufacturers could be affected by the same company going bankrupt, causing a much larger wave of layoffs.

[USAFJeeper]

My thought on the matter was this. Which company makes Camaros? Ok thats the company I am buying my next car from. It was really an easy choice. Too bad they killed the Pontiac line, every one knows Trans Ams were faster than Camaros cause of the Super Chicken!

[elcamino85]

There is a brand new commercial from GM saying how they paid their loans back and it shows a bunch of cars through the factory. The one thing I was looking for was a Camaro and they showed a beautiful SIM SS.

[nashstat]

Originally Posted by WongBob

Is anyone picking up what I'm putting down? WE gave them the money to bail them out... now WE are going to pay their debt to US off.

Does anyone else see what I'm seeing?!?!

Dont get me wrong... I own nothing but GM products because, well, they are simply the best, but they are double dipping hard on this.

I would also like to personally thank the engineers at Toyota for assisting GM in paying back this loan by making more than a few defective cars.

There is no double dipping involved. The government bought stocks in GM out of taxes that had already been collected. The govt did not charge us any extra taxes towards GM or Chrysler, they basically took the existing collected taxes and let GM have the money.

Where as when you pay for Football stadiums and other such things, the govt collects extra taxes from you to pay for those things.

Simply put... you did not lose a single extra cent to bail GM/Chrysler out and no one is forcing anyone to buy stock in GM. If that was the case, you would have had a choice in the matter, such as when you are asked to vote for new stadiums and such things. If GM/Chrysler did not need bail out money, then you would have still paid the same amount of taxes.

So no double dipping involved.

[ALLT4]

Originally Posted by WongBob

Is anyone picking up what I'm putting down? WE gave them the money to bail them out... now WE are going to pay their debt to US off.

Does anyone else see what I'm seeing?!?!

Dont get me wrong... I own nothing but GM products because, well, they are simply the best, but they are double dipping hard on this.

I would also like to personally thank the engineers at Toyota for assisting GM in paying back this loan by making more than a few defective cars.

I get exactly what you're saying and can't figure out why others can't see it. GM needs to initially buy back the stock the from the taxpayers. THEN sell it to investors. Selling stock to the taxpayers twice is getting a free ride and pretty much loan forgiveness.

[Blackbean]

One of these posts said the government, taking stock shares for repayment, is a bad idea.Check this,the gov. took stock shares in Morgan Stanley as payment for tarp money,the stock has gone up, and we the people, stand to make $8.8 billion .
I find it hard to call someone stupid and a liar when they turn that kind of coin.I just wish they would manage my 401K!!!

[Ravirn]

Originally Posted by CamaroSkooter

So now all the tools can quit calling them Government Motors.

Hardly. Obama et al own 60% of General Motors (the United States company, not the Canadian one).

This won't be over for years. On the plus side, I think if the U.S. federal government plays it's cards right, it can make some good money for American citizens.

Past results are not indicative of future returns. Hopefully.

[AdnanHfuda]

GM is free