General Motors CEO is running ads that GM has paid back the government bailout ""in full, with interest, years ahead of schedule."
The GM CEO is full of BS:
US taxpayers through our "generous" government gave GM a bailout of $49.5 Billion. The GM CEO said in an editorial and in the ads that the bailout is "paid back in full". Surely he means the $49.5 billion right? NO! The Obama administration handed GM only $6.7 billion as a pure loan. Most of the bailout money was transferred to GM when the federal government (with our tax money) purchased 60.8 percent equity in the company. By the way, did you know that Canada bought 11.7% equity...between Canada and US they own 72.5% of GM.
So he means only the $6.7 billion when he says "paid in full".
That's not all. How are they paying for it? The Obama administration put $13.4 billion in an escrow account for "working capital". GM is using this escrow account...government money...TAX payer money...to payback the government loan.
Furthermore...the $6.7 billion was loaned at 7%...GM is now applying for a Dept. of Energy loan of $10 billion...at 5%!
GM is using government money to pay back government money to get more government money. And at a 2 percent lower interest rate. This is a scheme to refinance GM's government debt—not pay it back!
GM's Phony Bailout Payback