wannabess00

iTrader: (1)

Youre comparing apples to oranges on this. The banking institutions went down a little differently then the auto industry. And its funny how people get more outraged towards the auto bailouts then the banks

PopaPork

iTrader: (4)

I've read all the comments and some of the articles linked here and a few others on some sites, and one question I have which no one is asking is.
If they were able to pay the loan off 5 years a head of schedule, WITH interst....how bad were they?
I mean to be 5 years ahead, something doesn't add up. If someone can shoot me a article that explains it I would be much appreciative.

Blakbird24

iTrader: (24)

Well, if we're considering that scenario, it's pretty simple. Asset sales and sacrificing profit for debt reduction. People are quick to point out that GM is not yet turning a profit, and then wonder how they were able to pay down their debts this fast. The answer is right there.

Sopcich04

government should never interfere with any business!!!! they only look to steal our money and hurt everything the public does.
i want my money back from the government, let business fail if they dont know how to make a profit. if govt never interfered then the free market would be perfect now

lousy govt broke up great companies like Standard Oil, US Steel, AT&T.
govt didnt need to break up those monopolies, they never hurt anyone(except the consumer)


oh and...

XxGarbSxX

There's a difference between anti-monopoly legislation and meddling in the market.

Sax1031

Highly misleading add.

I don't think GM marketing should have ran with it, nor the current administration.

Pay down one government loan with money from another government loan is not exactly paying the government back as of now.

I think it was a good business move because they paid down a higher interest loan with money from a lower interest loan but I wouldn't go making commercials stating they paid the government back.

shoemike

iTrader: (25)

They didn't pay **** down, they are shuffling TARP money around.

Neil Barofsky:
Still Government Motors

Between the US & Canadian Governments, GM has gotten $60Billion
We could have bought Greece for that.
Greece Asks for $60 Billion Bailout

Blakbird24

iTrader: (24)

Damn dude...we've been over this already. Maybe I just need to explain it in newbie terms:

When the government created the "New GM", the money in the working capital account became part of the company. So GM has used that money to pay back it's loans. Sure it's money that was given to them...EVERYTHING THEY HAVE WAS GIVEN TO THEM. However, it is not, as Grassley would love you to think, TARP money. It WAS TARP money before the bankruptcy...with the restructuring it became GM's money. Yes it's all clever government money games, but that's reality. If you have a problem with this, you can protest by NOT BUYING a GM vehicle...even better, stop posting on this GM FORUM.

It really is that simple.

No matter how you spin this, it's good news. It's a reduction of the debt owed by GM. You can look at it as them paying off a bad debt with a not-as-bad debt, you can look at it as them giving back some of the money given to them. Sure it's far from the "complete squaring" that GM and the government would lead you to believe, but it's good news nonetheless. Right now, as far as the government is concerned, GM is paid up. They are not free by any means...the government still has the majority stake, but their loans, in the eyes of their lender, are paid up.

wabmorgan

That $43 Billion is toast.... it was blown up in the bankruptcy.

We might get something when/if IPO is made.... but whether it will add up enough to equal the other $43 Billion is more than somewhat debatable/doubtful.

shoemike

iTrader: (25)

This is the standard reply is to anything that casts GM in a bad light.
I'm not spinning anything, the story in post#1 is spin.
"Paying off" this debt isn't the reason they're not making a profit.

AronZ28

iTrader: (2)

I feel like that GM PR ad posted earlier is a bold face, arrogant lie. GM didn't pay **** back to the government, all they did is pay off one government loan with another government loan.

You'd think the GM board would've learned from the whole Toyota fiasco that the public doesn't like their auto companies to lie to them.

JeaneZ28

iTrader: (3)

Who cares where the ******* money came from. They gave back 4.5 Billion of our money. If they dont need the money then they are making a profit which means they cant start paying off their debt. Now everyone bitching

Blakbird24

iTrader: (24)

Please read post #68.

kain01

I still say that we're missing the big picture, because the Government is out of GM's hair, because they got their money back. The how isn't nearly as important as the why, which again means GM can go public again, start raising shares, and start making some serous dough. This is why they did what they did, stop focusing on irrelevant matter's like where the money came from. It doesn't matter if they used mafia blood money, they still got the high interest government loan off their shoulder's.

Sax1031

The government has not got their money back yet.

GM basically refinanced it's loan with the government using a lower interest government loan.

LS1LT1

iTrader: (16)

88blackgt

Out of their hair is a long stretch. GM still owns a majority of GM and just as much money is owed as before. This is a pebble in the ocean.

kain01

Not really, the government is still the majority shareholder, which still sucks. But this still opens door's for GM to make more money. IE less interest to repay.

Spoolin

iTrader: (8)

If I understand it correctly GM used TARP money that was given to them a while ago and had been sitting in a separate account. So if that's the case they used money that was given to them yes, but it was part of the bailout funds from earlier this year or last year. I think they owe less now than they did prior to this.

Blakbird24

iTrader: (24)

For once, you and I are on the same page. You are pretty much right.

The money that they used to pay back this loan was money that they got from the government during the bankruptcy. If you subscribe to the media spin and Senator Grassley's claim, then GM the company, as it came out of the bankruptcy, didn't actually have any money. The cash that they claimed at the time was all given to them as part of the "packaged bankruptcy". So now, everytime they do something positive, all the naysayers have to do is remind everyone that they did it with TARP money...because, in a very specific way of looking at the situation, that's the truth. Since General Motors Company emerged from the bankruptcy with nothing but the gifts the government gave them, everything they accomplish from here on out can be "because of the government" or "because of the bailout". That will be the popular spin for GM haters for the foreseeable future.

The truth is that the money they used to pay back those loans was, according to everyone who matters in the situation, theirs. Money that was owed is now not owed, and no matter your angle, its good news.