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Member since: Sat Jul 2, 2016, 06:31 PM
Number of posts: 20,796

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General Motors To Invest $1.4 Billion In Brazilian Factories


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Just one more slap in the face to the US people. This comes after GM took one billion dollars of the taxpayer’s bailout money and invested it in Brazil during the Obama Administration.

Did General Motors Really Repay Its Taxpayer Bailout?

General Motors announced this week that it repaid its multibillion-dollar taxpayer-backed TARP loans. GM even bragged that it was able to “repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles.” There was great fanfare, including expensive, around-the-clock GM TV commercials nationwide. But, the hype is not the reality. In fact, GM did not repay the loans with money it earned from selling cars. Instead, GM repaid the TARP loans with money it withdrew from another TARP fund at the Treasury Department.

The day before the GM story broke, Neil Barofsky, the government TARP watchdog, testified before the Senate Finance Committee. He explained that GM did not use earnings to repay its TARP debt. The April quarterly report to Congress from his office stated: “The source of funds for these quarterly payments will be other TARP funds currently held in an escrow account.”

GM filings with the SEC reveal that GM was paying 7 percent interest on a $6.7 billion TARP debt. The filings also confirm that the source of funds for GM’s debt repayments was a multibillion-dollar TARP-funded escrow account at Treasury; that means it was taxpayer money — not earnings.

Meanwhile, in all the fanfare and patting themselves on the back, Treasury and GM made no mention of what happened to the $2.5 billion loan GM owes its union health care plan. The union loan carries a 9 percent interest rate and runs until 2017. Don’t most Americans try to pay off their higher-interest debts first? Well, the union loan was not paid off. Why not? Does the union get to keep collecting 9 percent from GM until 2017, courtesy of the American taxpayer, while taxpayers give up a 7 percent return over the next five years in exchange for the hope that GM stock will be worth more than what we paid for it, someday down the road?

It is far from clear how GM and the Obama administration could honestly say, much less trumpet in prime time television ads, that GM repaid its TARP loans in any meaningful way. The reality is that GM got additional TARP billions from a Treasury escrow account filled with taxpayer dollars. Taxpayers have not been paid back “in full” and are still on the hook for the TARP stock investment in GM. Whether taxpayer funds are ultimately recovered depends upon the administration’s ability to sell GM stock at a profit some day. Of course, we all hope it works out that way, and it might. But, the American people deserve more than puffed-up press releases and misleading commercials claiming that GM paid its loans back to the government with money it earned. I recognize that one of the goals of the GM ad campaign is to build trust, but GM did it all wrong, apparently with some help from the administration. Shifting bailout money from GM debt to GM stock is not the same as repaying it. Stock is riskier than debt. Maybe it’s a good idea. Maybe it’s a step in the right direction, maybe not. Only time will tell. But, we should be clear with the American people about what happened here.

The Wall Street Journal reports that Treasury is beginning to admit the truth. Treasury claims the source of the funds was “clearly disclosed” all along. Well, that might be technically true. However, to understand the disclosure you have to be a sophisticated investor with time to pore over the fine print buried in massive SEC filings and government reports prepared by independent watchdogs with teams of auditors. The average citizen, on the other hand, just sees the GM CEO saying that GM has paid back the taxpayer “in full.” The truth is that GM originally received over $49 billion from the US government and many billions remain to be recouped. That is why we were told at the Senate Finance Committee hearing that TARP losses related to the auto companies are expected to exceed $30 billion.

The timing of this maneuver also is troubling. The administration’s so-called Financial Crisis Responsibility Fee, a TARP excise tax intended to recover TARP losses, was the subject of the Finance Committee hearing. The Office of Management and Budget, and the nonpartisan Congressional Budget Office, estimate that overall taxpayer TARP losses will exceed $100 billion, and the auto companies will account for over 30 percent of that amount, more than $30 billion. So why does the president exclude the auto companies from his TARP excise tax proposal? I raised this issue at the hearing. I noted that GM refused to testify. The next day we learned that GM, with the permission of Treasury, withdrew billions from the TARP escrow fund and accelerated the repayment of the entire GM TARP loan. Immediately, GM and the administration launched a public relations campaign touting “repayment.”

Regardless of the motive, this situation is a perfect example of the shenanigans caused by excessive government intervention in the economy. Being honest with the American people is not optional. The sooner these extraordinary entanglements between taxpayers and the private sector are over, the better.

Trump threatens to cut subsidies for GM after layoff, plant closure announcement

President Donald Trump threatened to cut subsidies to General Motors on Tuesday, one day after the Detroit automaker announced it was laying off 14,000 workers in North America and closing seven plants worldwide, including four in the U.S.
"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including...." Trump tweeted on Tuesday.
"....for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers!" The President continued in a follow up tweet.

General Motors gets government subsidies????

There is the real story if you ask me.

What cowards!

Putting children at the front of their assault on the boarder.

This shows who these people are - a bunch of criminals with no regard for the rule of law or even innocent children.

Of course they think they have a right to storm the border

They have been told they have a right to be here

Shocking US government leaflet tells Mexican immigrants they can collect food stamp benefits without admitting they're in the country illegally

U.S. Government Spends Your Tax Dollars Advertising Food Stamps In Mexico

A naked airline pilot flew from Miami to Chicago with a plane full of people

Well, he would have been naked if he had taken his clothes off.

Anybody give a frog's fat ass about Saudi journalist Jamal Khashoggi?

I don't know what they want

The IRS returned my tax return last year after I apparently answered one of the questions incorrectly.

In response to the question, "Do you have any dependents?" I wrote:

9.5 million illegal immigrants, 1.1 million crack heads, 3.4 million unemployable scroungers, 80,000 criminals in over 85 prisons, plus 650 idiots in Washington.

In their letter, the IRS stated the answer to question 7 was "unacceptable."

So I wrote back, "Who did I leave out?"

CDC has traced the source of e coli contaminated lettuce to California

7 degree wind chill for the Macy's parade in New York

Millions of Americans in the Northeast and Middle Atlantic states will wake up to the coldest Thanksgiving in more than a century, with high winds even threatening the iconic Macy's Thanksgiving Day Parade, meteorologists said Wednesday.

The mercury in Philadelphia is expected to dip to a bone-chilling 29-degree high on Thursday, with similar shivering temperatures set for New York and Boston at 26 and 21 degrees, respectively, according to NBC meteorologist Kathryn Prociv.

The lowest high temperature for a Thanksgiving in New York City came on Nov. 30, 1871, when the mercury fell to 22 degrees, according to the National Weather Service. The coldest Turkey Day in Boston was 19 degrees, in 1873. Philadelphia's coldest Thanksgiving was 28 degrees, in 1901.

New York City is also bracing for winds of 15 mph to 25 mph on Thursday, which had Macy's parade organizers on high alert Wednesday. The parade will go on, but whether the 16 giant balloons will fly is another question.
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