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Nope, I complained about him forcing them (Goldman, JPM, Morgan Stanley) to accept bailout funds so as not to stigmatize Citi et al.
Doesn't matter, TARP has been paid back. We are $33 billion in the hole to support the UAW.
We are not $33 billion in the hole. We have $33 billion in risk capital in GM stock. As it stands today the government will recoup a profit. Nobody know if that is the case six months from now that's why it's called "Risk Capital".
I am amused by all the right wing supporters of big business getting all upset about the way a big business is distributing its profit. I can only hope that the US Government, as a major stockholder, has a seat on GM's Board and had some input into this profit sharing decision. This is the way PRIVATE business works. If you want to have a say buy a lot of stock. Unlike government where, theoretically, one person has only one vote; in corporate governance one share has one vote so the people having the most shares have the most control. Our government fails because it has effectively adopted the corporate system so one political contributor has many more votes than a regular citizen.
There also seems to be a class bias against blue collar workers getting any share of the profit. It seems to me that the Right Wing wants profit sharing bonuses to be limited to white collar (and race) employees with any extra going towards dividends for the (also predominately white) shareholders. My response is try getting your collective asses on a production line and see if you last more than a week. IMHO hard work deserves the profit sharing much more then the cubical bound white collar.
It is money from the US treasury, that has not been repaid. You have no basis for thinking we will walk away with a profit.
It doesn't have to be "paid back", that's the point you're missing. The government bought shares of stock with that $33B. The government is free to sell those shares whenever they wish. There is no way GM can force them to sell, and since the Gov bought something with that money, THERE IS NOTHING TO BE PAID BACK.
If you buy $300 worth of IBM stock, does IBM then owe you $300? Absolutely not. I don't see why you think GM does.
I hope the "we" you're alluding to in your statement above is the Fed Gov. Because, whether the Gov sells that stock for a profit or not, we - you and I - are never going to see any of that money. You do realize that, right?
It doesn't have to be "paid back", that's the point you're missing. The government bought shares of stock with that $33B. The government is free to sell those shares whenever they wish. There is no way GM can force them to sell, and since the Gov bought something with that money, THERE IS NOTHING TO BE PAID BACK.
If you buy $300 worth of IBM stock, does IBM then owe you $300? Absolutely not. I don't see why you think GM does.
I hope the "we" you're alluding to in your statement above is the Fed Gov. Because, whether the Gov sells that stock for a profit or not, we - you and I - are never going to see any of that money. You do realize that, right?
No, the government bought an interest in the company.
The IPO was issuance of stock and the USG sold 1/2 of it's interest via that stock. The USG is not holding shares of GM..they have a vested $$$ interest in GM.
Then I've misunderstood the agreement between GM and the Fed Gov all along. Can you explain what "bought an interest in" means? I thought, evidently incorrectly, that the only way to "buy an interest" in a publicly traded company was to buy stock.
General Motors reported net income attributable to stockholders of $2 billion in the third quarter, its third consecutive profitable quarter, and said it will be profitable for the full year.
There you go again with those damn facts.
Don't you know that facts have no place in Conservative ideology?
We are not $33 billion in the hole. We have $33 billion in risk capital in GM stock. As it stands today the government will recoup a profit. Nobody know if that is the case six months from now that's why it's called "Risk Capital".
Nope, the stock has to hit $53 to break even trading at $36.
There is nothing to prevent the auto companies from finding themselves in the exact same place they were pre bailout. Wall street on the other hand has regulations out the wahzoo.
There WILL be another financial crises. And it will probably be in reference to something not covered by current government regulations.
Why?
The elemment of risk an essential part of a capitalist economic system. Also there is an element of greed. As long as there are those two factors at play in the investment and finaicial community there is an opportunity for a meltdown of some sort.
Also Wall Street will develop financial instruments or investment or speculative pracitices in the future that present government regulations won't account for.
It doesn't have to be "paid back", that's the point you're missing. The government bought shares of stock with that $33B. The government is free to sell those shares whenever they wish. There is no way GM can force them to sell, and since the Gov bought something with that money, THERE IS NOTHING TO BE PAID BACK.
If you buy $300 worth of IBM stock, does IBM then owe you $300? Absolutely not. I don't see why you think GM does.
I hope the "we" you're alluding to in your statement above is the Fed Gov. Because, whether the Gov sells that stock for a profit or not, we - you and I - are never going to see any of that money. You do realize that, right?
Of course it has to be repaid, the debt isn't going to disappear from the treasury balance sheet.
Don't worry, I'm not holding my breath for that to change.
What gets me is I have yet to hear ANYBODY that has complained about GM workers getting bonuses complain about government subsidies corporations receive every year or corporate tax loopholes that allow corporations to reduce there tax burden by the billions.
Where's the outrage?
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