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 | GM Repays? Posted by Joseph Rowlands on 4/22, 5:46pm | |
| The article says General Motors decided to "repay" $8.1 billion to the US and Canadian governments. Originally, the impression given was that they paid back their loans. The Obama administration evidently thought this was great news, and talked about a turnaround! But in fact, they still owe $45 billion to the US (and some more to Canada). So it sounded a little optimistic, to say the least. But if you read the fine print further, it says GM is still losing money (it lost $3.4 billion last quarter). So there isn't really a turnaround. The impression that they've recovered and are starting to pay off the debt is not just misleading. It's outright false. If they aren't earning the money, where did they get it? From the original loan. So a different way to look at it is that the government lent them taxpayer money, and gave them extra so they could afford to pay back part of it early, making it appear as if the rest of the loan was a good idea. | ||
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