GM payback
 

It was in the KC news today that GM has repaid the $8.1 billion loan from the government - five years early. GM will be retooling the local plant to produce the next generation of Malibu. With that news, I would expect that the value of the stock the feds still hold in GM increased in value as well.

Regards,

D-Ray

They have a commercial about it - saw it this afternoon. Glad they paid it back. I'm guessing we'll get all the bail out money back with interest. Won't prevent people from yelling about bailouts over and over moving forward.

That's ashame. They should have all lost their jobs and collected from social programs until they had to turn to crime to survive. Can I get an amen sister sarah!

The new CEO (can't remember his name) is a pure business guy, not an automotive guy. He came from AT&T. Since he took over he has been kicking some serious ass, a real zero tolerance, failure is not an option type guy. In some cases he has found new people for key positions three times since he took control.

I'm delighted that they've paid the loan back so early. This way all the Wing Nuts can't say that the gummint "owns GM".

I take that back. It was never true. The loan was the "evidence" they pointed to but I'm sure they'll continue to say it anyway.

By the way, the new Fiat-owned Chrysler showed a modest profit last quarter. Things are looking up despite Obama's best efforts to destroy the country. ;)

John

I always liked your posts john, this is just another example.;)

One correction, however, John. The Feds do still own GM, with 61% of the stock. Only the loan was paid back, not the investment. I'm not sure how the ownership share will be recovered by GM.

Regards,

D-Ray

When the Feds decide to sell their stock. They have to sell judiciously in order to not depress the share price by flooding the market with GM shares. The Federal gov't. actually stands to make money on the GM bailout. How about that? Save jobs and the domestic auto industry and make a few shekels for the treasury in the process. The Wingnuts are likely shittin' themselves.

It all sounds very stimulating to me.

On the other hand, I wouldn't be surprised to see Wall Street try to Punish Obama for pushing financial reform. I'm sure some in the industry who could bring down the market if they wanted to.

Regards,

D-Ray

Yes, just like they did when they bailed Chrysler out all those years ago.

John

Talked to my brother John yesterday. He is a retired GM engineer. It seems that despite the good news, he and all salaried retirees but top echelon execs (Of course), have lost their pensions and retiree health benefits. His pension now comes from PBGC and he pays a percentage (Didn't say what % that is.) of his health bennies, the rest is subsidized by---the IRS.

So, guess what? Despite the good news, GM did manage to dump it's salaried pensioners off on the taxpayer after all.

Now, my Brother Ed, who is a retired Union guy still gets his pension and health benefits, but they are no longer paid by GM. The UAW has been forced, by the federal government, to pick up that tab. It is not known how long the UAW can bear this financial burden before they go broke. Or what will happen when that occurs. My guess is that all of the retired hourly guys will end up on the public dole as well.

The net effect is that the company has shed all retirement obligations for everyone except executive level employees. And that the government has helped them pretty much crush the UAW.

I tried to explain this to a wing-nut coworker today, and he said; "Bullshit. A guy on Limbaughs show said those fuckers are trying to get a 13% increase this year and we're paying for it."

Where does it end? (The "it" being the absolute rubbish being spewed by people like Limbaugh, BTW.)

Dave