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The GM and Chrysler bailouts saved more than 1 million jobs, the Center for Automotive Research said in 2010, including both GM and Chrysler workers and employees of the companies' suppliers. The actions also prevented the loss of $96.5 billion of personal income in 2009 and 2010, the Center estimated, and let the government save a combined $28.6 billion by reducing entitlement spending on unemployed workers and collecting taxes on wages of those still working.
While no one is happy the U.S. is selling at a loss, the alternative to a bailout would have been much more expensive and damaging to the economy.
Well they did. They borrowed from the government under a different program to pay back the loan that was the focus of media press. They just didn't tell you.
The banks did the same thing. They borrowed from other government programs to pay back TARP.
I do not call that being paid back when the gvt is selling shares at a lost and almost anyone from a mile away would know that would be the outcome. Would you buy GM shares after they shafted the investors the first time?
I do not call that being paid back when the gvt is selling shares at a lost and almost anyone from a mile away would know that would be the outcome. Would you buy GM shares after they shafted the investors the first time?
Only if you trade stocks and know how it works would you understand what they did.
Shafting the bondholders in favor of the union was a major rule breaker.
Bondholders have precedence over employees.
And that's why GM didn't go through the normal bankruptcy process.
The government changed the rules of the game.
Only speculators went into GM..no sane investor would purchase GM with thoughts of future appreciation/income.
So why were Romney and the GOP trying to take credit for the auto-industry recovery? As usual the GOP is shallow, clueless and willing to do whatever it takes and sit on both sides of an issue..
How is your post even remotely related to the topic of this thread?
How is your post even remotely related to the topic of this thread?
Because the OP is complaining about selling the stock at a "loss", yet the overall actions that lead to this were the right path as evidenced by the GOP wanting to take credit for the bail out.
Every article written about this sell uses words like ;Potentially, Likely, or may lose money.
I think the fat lady hasn't sung yet on this deal. Maybe we'll know in 15 months.
While no one is happy the U.S. is selling at a loss, the alternative to a bailout would have been much more expensive and damaging to the economy.
No it would not.
Failing companies should be allowed to fail. It's a natural process that weeds out the losers. They are soon replaced with new companies or expansion by better run companies.
The demand for skilled workers would not have changed, so other companies would have picked up many of the workers to meet increased demand.
Only if you trade stocks and know how it works would you understand what they did.
Shafting the bondholders in favor of the union was a major rule breaker.
Bondholders have precedence over employees.
And that's why GM didn't go through the normal bankruptcy process. The government changed the rules of the game.
Only speculators went into GM..no sane investor would purchase GM with thoughts of future appreciation/income.
Correct. Left alone, the market will balance risk and reward. When the government socializes risk for selected businesses, the market is dysfunctional and encourages businesses to sit on the sidelines. Uncertainty is bad for the economy.
We don't need the government to pick winners and losers.
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