Posted on 11/17/2011 9:07:59 AM PST by jazusamo
It's tucked away in a blog post at the Detroit News and may make the business pages elsewhere. But you know that if the bailout costs for GM were less than expected, it would be frontpage news:
The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.'s steep stock decline.
~snip~
I don't care of GM and Chrysler pay back every penny - which they won't. The bailout should not have gone through. The auto makers should have been allowed to go the normal bankruptcy route instead of the cram down measures taken by the federal government that rewarded slothful unions at the expense of investors who lost everything.
(Excerpt) Read more at americanthinker.com ...
I saw a bit about this on FOX this morning but nothing more.
The taxpayers got hosed. The FedGov still owns a huge chunk of GM stock, because if its sold, they’ll lose even more billions.
Yep, the LSM has been silent on this fiasco and will remain so with the election coming up. Hopefully Fox and The Washington Times as well as the conservative watchdogs will keep reporting.
What? They gave taxpayer money to Democrat union donors, and we won’t get it back? Well, at least the Democrat party will get some of that money.
And the Canadian Gov't, The CAW, & UAW as their "VEBA's" are tied to the stocks success. If it fails, so do their Retiree Health Care plans via the "VEBA's". This was the Bond holder equity swap to the Unions which to me was one of the biggest sins of the Obama Administration, taking Bankruptcy and Common Law back, way back,, before the Magna Carta even.
And no one will talk about their pension liabilities, depending upon the source that is either 29 to 49 billion.
Their was a huge wealth transfer from the bond holders to the Unions without a proper discharge of total liabilities, in theory the residual Capital in the company was just shifted to Obama's Union Thug friends ( IMHO it is loaded with liabilities) and no one had the cohones to do a thing about it....
Yep. This was total tyranny and... crickets
I had a bunch of friends at Delphi who got screwed on their pensions at the expense of union pensions being propped up. Turner (Dayton) & Issa are investigating. Sherrod Brown has been AWOL on this.
You can’t even remotely compare the bailout of Chrysler in the 70/80’s to this, so it has no validity as a precedent.
My college accounting prof told us that we should put ourselves in debt to our eyeballs buying Chrysler stock because it was selling BELOW book value of the company. You could not lose at the time. Had I done so, I would have sextupled my money in a year.
Walmart and Bob Evans were a safer bets.
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