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GM Bankrupcy Costs U.S. $50 billion   June 1st, 2009
The bailouts just keep coming       


More observations...

GM finally declared bankruptcy today. Of course, in the case of GM, that doesn't mean the end--it means the beginning of another $30 billion in taxpayer dollars that the government will be giving GM to make it through bankruptcy.

The Obama White House auto task force said Sunday the government will pump another $30 billion into a restructured General Motors that has 50 percent fewer liabilities and far fewer product lines...

Not one of Obama's senior economic advisers could or would venture a guess as to when taxpayers would see a return on their massive and White House-engineered investment.

"We're not here to predict," a senior official said when asked about any timeline for taxpayer payback.

The bailout nonsense just keeps getting stranger and more absurd.

Now GM is going bankrupt--as it should. But rather than that simply representing a loss of the $20 billion the government has already invested, apparently the bankruptcy entitles it to another $30 billion of our money. And not only is Obama sinking tens of billions more into a bankrupt company, they aren't even willing to guess when the government might get its money back. Probably because, like Chrysler, GM will never pay it back.

Senior administration officials, who declined to speak for attribution, said the U.S. government will be a "passive" investor but will oversee operations at the new GM because "the taxpayer will want us to."...

... Treasury will appoint all new board of directors members not appointed by the VEBA and the Canadian government.

Who are these taxpayers that want the U.S. government to oversee operations at the new GM? And how do they propose to be "passive investors" when they'll be appointing a slate of members to the board of directors? The article says the government will not influence day-to-day operations, but by appointing their board of directors members they will effectively be doing so.

The government will sell equity stakes as "soon as practicable." The goal is a profitable company without government involvement.

As soon as practical? That'd be NOW. Sell the equity stakes NOW. I don't care if they sell for 5 cents a share. Get that equity stake into the private sector immediately and get government out of private industry.

I am getting close to being in the market for a new car since my primary vehicle is coming up on 10 years. But I will not be buying any vehicle from a company that is owned by the government. I guess that leaves Ford and foreign automobile companies. A Ford Mustang might be fun.

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