“Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM, Grassley wrote. A debt-for-equity swap is not a repayment … In a hearing Tuesday before the Senate Finance Committee, TARP overseer Neil Barofsky confirmed that GM was using Treasury funds to make the loan repayment.”
We should really be surprised if the GM bailout (and the supposed re-payment message constantly repeated on the media) doesn’t rank at the very top of the list for all-time bad government spending policies. There are just so many reasons it should never have be allowed. On the most basic level it is outrageous to take the tax money paid by those making $10 per hour and give it away to a company like General Motors.
The survival of GM from this point forward will do more harm to the economy, the environment and the social fabric of North America than any minor benefit from its survival. To think more than half of all corporate taxes paid in Canada or USA is being placed into the bank accounts of two corporations to help them survive and therefore compete against other companies that are trying operate in the open market is totally preposterous.
The fall of GM was pushed back by a few years, maybe decades if we bail them out again in the future which we most likely will. This assumption is based on the shocking claim made by Republican Sen. Chuck Grassley:
General Motors repaid TARP loans with other bailout funds instead of company earnings, Republican Sen. Chuck Grassley claimed Thursday in a letter to Treasury Secretary Tim Geithner. The Iowa senator called the maneuver an “elaborate TARP money shuffle,” saying the auto maker siphoned funds from a multibillion-dollar Treasury escrow account to repay its bailout debts.
“Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM,” Grassley wrote. “A debt-for-equity swap is not a repayment.”
Grassley’s concern arose from a quarterly TARP oversight report issued Tuesday, which stated: “The source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account.”
In a hearing Tuesday before the Senate Finance Committee, TARP overseer Neil Barofsky confirmed that GM was using Treasury funds to make the loan repayment. He said the government could see a huge loss from bailout funds paid to the auto industry, as the manufacturers’ ability to repay depends on car sales.
“The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government’s ability to sell GM stock in the future,” Grassley wrote.
On April 21, GM announced that it repaid $6.7 billion in government loans five years ahead of schedule. The company touted the debt repayment in speeches, press releases and television commercials, the letter states. Source: Courthouse News
The fact remains that corporate bail outs are against the very principals of a capitalistic system. You may think this is good news but it isn’t. It just gives an excuse to governments in the future to do this again. There is a reason why men / companies must face the risks of failure. It teaches responsibilty and GM and the unions it has to deal with still have much to learn. These subsidised jobs are an injustice to the rest of north americans.
On another vein, and potentially more important, we must ask why General Motors went bankrupt. Indeed, the bankruptcy of General Motors (GM) is very similar to the collapse of the twin towers of the World Trade Center on 9-11. Both catastrophic events are described in the controlled media as having occurred due to natural forces, while actually they are both the results of sabotage carried out by insiders. In both cases, the people who brought down the operation were Trojan Horses, people who had bought their way into positions of control in order to destroy them. The people behind the destruction of GM and the WTC are corporate raiders of the worst kind.
General Motors did not simply collapse as a result of market forces; it was bankrupted by corporate raiders who had infiltrated the company and taken control of its finances. Likewise, the evidence indicates that the twin towers of the World Trade Center did not collapse due to the stresses associated with the plane crashes; they were prepared in advance to be demolished using extremely powerful explosives, including tons of nano-thermite, or super-thermite. This was facilitated by the people who had obtained control of the towers shortly before 9-11, namely Larry Silverstein and the former Israeli commando Frank Lowy.
What is most remarkable is that these events are closely related. The same people are involved in the conspiracy to plunder and destroy both the World Trade Center and General Motors. This article identifies some of the key people and reveals the strategy behind the destruction of one of America‘s oldest companies.
BANKRUPTING GENERAL MOTORS
General Motors Corp. filed for bankruptcy on June 2, 2009, as the Zionist-run Obama administration provided unprecedented federal funding and oversight. The bankruptcy filing by GM was the third-largest in American history and the largest ever in U.S. manufacturing. Now that GM is facing restructuring, its assets will be taken over for pennies on the dollar. The notorious corporate raider Carl C. Icahn, for example, is reportedly looking at taking over Delphi Chassis Systems.
So, how did GM go bankrupt? If one looks at the sales figures for GM, it simply does not make sense. In 2007, GM was the largest producer of vehicles in the world, manufacturing 13 percent of the total, and had the largest slice of the U.S. car and truck market with 23.4 percent of domestic sales.