How did GM pay off its bailout loans?

posted at 10:12 am on April 23, 2010 by Ed Morrissey

The backers of the bailouts to General Motors cried with triumph this week when the automaker announced that they had repaid their bailout loans ahead of schedule.  That amounted to proof of the wisdom of government intervention, the argument went, and wondered aloud why bailout critics didn’t acknowledge their errors.  Perhaps it’s because the government essentially got paid off with even more government money:

During an April 20 hearing on Capital Hill, Sen. Tom Carper, (D-Del.) asked some pointed questions of Neil Barofsky, the “special watch dog” on the Wall Street Bailout, aka, TARP.

“It’s good news in that they’re reducing their debt,” Barofsky said of the accelerated GM payments, “but they’re doing it by taking other available TARP money.”…

“It sounds like it’s kind of like taking money out of one pocket and putting in the other,” said Carper, who got a nod of agreement from Barofsky.

“The way that payment is going to be made is by drawing down on an equity facility of other TARP money.”

This prompted a stern letter from Senator Charles Grassley (R-IA), who backed the bailouts, to Treasury Secretary Tim Geithner about the shell game being played by the Obama administration and GM (via Yid with Lid, emphases mine):

General Motors (GM) yesterday announced that it repaid its TARP loans. I am concerned, however, that this announcement is not what it seems. In fact, it appears to be nothing more than an elaborate TARP money shuffle.

On Tuesday of this week, Mr. Neil Barofsky, the Special Inspector General for TARP, testified before the Senate Finance Committee. During his testimony Mr. Barofsky addressed GM’s recent debt repayment activity, and stated that the funds GM is using to repay its TARP debt are not coming from GM earnings.

Instead, GM seems to be using TARP funds from an escrow account at Treasury to make the debt repayments. The most recent quarterly report from the Office of the Special Inspector General for TARP says “The source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account.” See, Office of the Special Inspector General for TARP, Quarterly Report to Congress dated April 20, 2010, page 115.

Furthermore, Exhibit 99.1 of the Form 8K filed by GM with the SEC on November 16, 2009, seems to confirm that the source of funds for GM’s debt repayments was a multi-billion dollar escrow account at Treasury—not from earnings. In the 8K filing GM acknowledged:

  • Of the $42.6 billion in cash and marketable securities available to GM as of September, 30, 2009, $17.4 billion came from an escrow account with Treasury,
  • $6.7 billion of the escrow account available to GM was allocable to the repayment of loans to Treasury,
  • $5.6 billion in cash would remain in the Treasury escrow account following the repayment by GM of their loans, and
  • Upon repaying Treasury, any balance of escrow funds would be released to GM.

Therefore, it is unclear how GM and the Administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way. In reality, it looks like GM merely used one source of TARP funds to repay another. 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. Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM. A debt-for-equity swap is not a repayment.

I am also troubled by the timing of this latest maneuver. According to Mr. Barofsky, Treasury had supervisory authority over GM’s use of these TARP escrow funds. Since GM’s exit from bankruptcy court, Treasury had approved the use of the escrow funds for costs such as GM’s obligations to its parts supplier Delphi. See, Office of the Special Inspector General for TARP, Additional Insight on Use of Troubled Asset Relief Program Fund (SIGTARP-10-004), dated December 10, 2009, at page 6. According to the GM 8K, GM had planned to use the TARP funds in escrow to pay back the TARP loans on a quarterly basis beginning in the fourth quarter of 2009. But following the April 20, 2010, hearing of the Senate Finance Committee, where Treasury’s decision to exempt GM from the bank TARP excise tax was questioned and GM’s refusal to testify was noted, it is odd that GM suddenly drew down on the TARP escrow and accelerated the repayment of the remaining balance of GM’s outstanding TARP loans.

The bottom line seems to be that the TARP loans were “repaid” with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the Administration have claimed in their speeches, press releases and television commercials. When these criticisms were put to GM’s Vice Chairman Stephen Girsky in a television interview yesterday, he admitted that the criticisms were valid:

Question: Are you just paying the government back with government money?

Mr. Girsky: Well listen, that is in effect true, but a year ago nobody thought we’d be able to pay this back.

Mr. Girsky then said that GM originally planned to pay the loan over the next five years. So the question is why—other than a desire to justify excluding GM from the administration’s TARP tax proposal—would Treasury and GM reduce GM’s TARP debt with TARP equity and then mischaracterize it as a repayment from earnings? Accordingly, please explain:

1) Your department’s justification for allowing GM to use funds from the TARP escrow account to repay TARP loans,

2) The amount of funds remaining in the TARP escrow account at Treasury that may be released to GM, and

3) The date that you anticipate that the remaining funds in escrow will be released to GM.

Thank you in advance for your cooperation. Please provide the requested information by April 30, 2010. …

Sincerely,
Charles E. Grassley
Ranking Member

In other words, this is just a shell game. As Jim Vicevich points out, it’s akin to paying off your Visa credit card with your Mastercard — and then bragging about your financial condition. Taxpayers are still on the hook for GM. Nothing at all has changed.

Instead, we have another good reason for government to refrain from bailing out private companies. It makes them act like government when it comes to transparency about their finances. This claim really does prove that GM now stands for Government Motors.


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I was wondering if I missed GM making $8 billion in earnings this year

faraway on April 23, 2010 at 10:15 AM

I paid off my mortgage too, after my refi.

faraway on April 23, 2010 at 10:16 AM

Never buy a GM… EVER. They stole our $.

Ford has Unions so they are iffy.

Toyota FTW.

tetriskid on April 23, 2010 at 10:19 AM

It was also done so GM and the White House could go out there and proclaim that the bailout worked. When in reality, GM’s still a bottomless pit of union pension and health care liabilities that the taxpayers will continue to be on the hook for.

Doughboy on April 23, 2010 at 10:19 AM

Paging Bernie Maydoff

Rovin on April 23, 2010 at 10:19 AM

The fact is, GM loses money each time it sells a car.

There is no way it can repay anything, ever.

Rebar on April 23, 2010 at 10:20 AM

Obama regime lies, about near everything — Your on your own America, to figure out the truth.

The regime depends on Obama-zombies for it’s very continuing existence.

tarpon on April 23, 2010 at 10:20 AM

But the GM CEO told me in his commerical that GM paid off their debt with interest.

txag92 on April 23, 2010 at 10:20 AM

I was a Chevy guy up until 2 years ago ……. the quality of Blazer’s kept going down and down, while prices kept going up.

No more for me, screw Gov’t Motors. I bought a Honda CR-V and couldn’t be more happier or safer.

Jerome Horwitz on April 23, 2010 at 10:21 AM

The GM CEO should be fired

faraway on April 23, 2010 at 10:22 AM

They’re recycling the green stuff.

the_nile on April 23, 2010 at 10:22 AM

I was defrauded by that taxpayer funded commercial the GM CEO made. FRAUDSTER!!!!

andy85719 on April 23, 2010 at 10:23 AM

What a bunch of lying scam artists…

PatriotRider on April 23, 2010 at 10:23 AM

As Jim Vicevich points out, it’s akin to paying off your Visa credit card with your Mastercard — and then bragging about your financial condition.

Listen to Jim’s show live or in podcast.

http://radioviceonline.com/live/

jnelchef on April 23, 2010 at 10:23 AM

They think we’re idiots.

I heard an ad with Obama’s crony CEO crowing about GM paying off its debt, and I didn’t buy it.

Needless to day, I’m never buying a GM product. Stop BSing us.

forest on April 23, 2010 at 10:24 AM

I will never buy another GM product again.

mechkiller_k on April 23, 2010 at 10:26 AM

It reminds me of the kind of ridiculous propaganda the Soviet Union used to do. Extolling the enormous successes of the latest 5 year plan…while millions starved. You could almost gauge the magnitude of the disaster by how successful they claimed it was.

AUINSC on April 23, 2010 at 10:26 AM

This one hit yesterday at a couple of the smaller blogs… and I’ve had a day to think about it. The main reaction I have is that we took US TARP money to pay off Canada! There’s US jobs for you.

Fox business also reported that the “old” GM still owes $1B. And GM is happily advertising this on TV. So their new IPO should be really good with lots of investor confidence. Whee.

jdfister on April 23, 2010 at 10:26 AM

Oh this is easy,from Team Obama’s Fund RaisingGate
in which,Biden,Team Leader,and Brains of the operation,
were skimming cash,off the top of Goldwin Sachs,in an
effort to make GM look good,in turn,making Changey look
good,

or,from the invisible ink,that materialized on the last
page of the HealthCare Bill,in which,there was a provision
to immediately pay off GM’s 8 Billion dollars!!

Its bat-sh*t crazy talk,I know!!(snark)

canopfor on April 23, 2010 at 10:27 AM

GM has been running TV ads with the whole “We repaid the govt. years in advance” shtick, and for people to “take a new look at GMC. But if this is all simple a monetary shuffle, it reeks.

I was a Chevy guy up until 2 years ago ……. the quality of Blazer’s kept going down and down, while prices kept going up.

Yeah my previous car was a TrailBlazer. My first leased vehicle…It wasn’t bad, but there’s better out there. When I returned it, I went to Ford and got the pony. No major probs yet…*crosses fingers*

JetBoy on April 23, 2010 at 10:28 AM

Please Drudge, let’s have a siren alert on this one.
How F-ing stupid does this administration think we are? Yes, that’s rhetorical.

Sugar Land on April 23, 2010 at 10:28 AM

I will never buy another GM product again.

mechkiller_k on April 23, 2010 at 10:26 AM

Racist.

the_nile on April 23, 2010 at 10:28 AM

“It sounds like it’s kind of like taking money out of one pocket and putting in the other,” said Carper

The problem is that there was no money in either pocket to begin with. It would be more analgous to filling a hole with more hole.

fourdeucer on April 23, 2010 at 10:28 AM

“Taxpayers are still on the hook for GM. Nothing at all has changed.”

Are we sure nothing has changed? Were the loans paid back with other loan money or does the escrow account the money was gotten from have a different kind of money in it. I ask because I’d read somewhere that the government may try to sell it’s 60% stake and a lower company debt structure would be of benefit to whoever the buyer would be.

Dusty on April 23, 2010 at 10:29 AM

Bringing Bernie Madoff into be a financial adviser to the president from his prison cell was brilliant. Finally someone who, at some time in his life, actually had a job and is incapable of the truth like the rest of these incompetent lib-tards. The White House has become a cesspool and the smell is emanating into all facets of American life. Never in the history of our country has the obvious corruption been so flagrantly exhibited.

volsense on April 23, 2010 at 10:30 AM

Why did they ever get the original loan, if they could get the escrow money for free?

Was it to gain control of the company? What have they done since they gained control?

faraway on April 23, 2010 at 10:31 AM

The way that GM has been trumpeting this “payoff” is very misleading. I saw a GM commercial the other day where some muckety muck in GM touted the big loan payback, GM quality, happy days are here again etc. party line. By the looks of it, you would think that GM is both producing quality cars, that people want, and they’re selling. From this thread Ed just posted, that does not seem to be the case at all.

I am sick of being lied to. I will not buy an Obamamobile and I refuse to accept the notion that GM is any more fiscally solvent today, than it was 3-6 months ago. This is a flat out lie.

ted c on April 23, 2010 at 10:32 AM

Special Inspector General is labeled delusional, and fired in 5, 4, 3, 2, ……….

capejasmine on April 23, 2010 at 10:32 AM

This explains it. I’ve been hearing the ads and wondering how GM managed this one.

Now, what will the fall-out be when people realize that the company is lying?

What a doofus move.

AnninCA on April 23, 2010 at 10:32 AM

I paid off my mortgage too, after my refi.

faraway on April 23, 2010 at 10:16 AM

LMAO on that one….you should be Treasury Secretary….any chance you are a tax cheat too?????????

SDarchitect on April 23, 2010 at 10:33 AM

All according to plan…make the TV viewers who only watch sitcoms, reality TV and commericials believe that the government saved an American institution and it’s now doing well. Demonize and penalize that solvent “foreign” auto maker (with plants and employees in the U.S.)

texabama on April 23, 2010 at 10:33 AM

Hasn’t this been converted from a loan … to a bailout?

faraway on April 23, 2010 at 10:33 AM

I’d read somewhere that the government may try to sell it’s 60% stake and a lower company debt structure would be of benefit to whoever the buyer would be.
Dusty on April 23, 2010 at 10:29 AM

That would make a weird kind of sense. Then they could claim a gigantic “profit.”

logis on April 23, 2010 at 10:34 AM

About 20 minutes ago Stuart Varney on Fox Business had a Michigan congressman as guest who did everything he could to avoid answering these charges and eventually said Grassly was mistaken.

Sheesh! What a bunch of liars. Can we stand 2+ more years of this bullsh!t?

ROCnPhilly on April 23, 2010 at 10:35 AM

Not just GM that’s a scam artist here, apparently so is the Treasury Dept. since it’s hard to believe they simply didn’t notice. Difference might be that they are scamming the taxpayer directly without the middle man to scrub the funds? Interesting turn of events this. Does GM have to re-fund the escrow account? Apparently not since they found using this the better option. How did we get here? Can we reverse it or is it too late? It’s like a hall of mirrors, you can’t find the exit.

jeanie on April 23, 2010 at 10:36 AM

One has to look after the Unions, don’t you know.

OldEnglish on April 23, 2010 at 10:36 AM

Now, what will the fall-out be when people realize that the company Obama is lying?
AnninCA on April 23, 2010 at 10:32 AM

Look around you.

logis on April 23, 2010 at 10:36 AM

I’ve owned two GM products in my lifetime and they are, without a doubt, some of the poorest designed POS’s out there. Never again. I like Honda’s for cars and Ford for trucks. Very reliable.

BierManVA on April 23, 2010 at 10:37 AM

I knew it was a load of crap, there was NO way GM could have made that money in such a short time with dismal sales.

royzer on April 23, 2010 at 10:38 AM

My departed grandfather, a fiercly brand-loyal GM retiree, would probably even swear off GM cars at this point.

flyawaybird on April 23, 2010 at 10:39 AM

GM lost $4.4 billion from April bailout to 12/31/09

faraway on April 23, 2010 at 10:39 AM

Yesterday afternoon I was out in my garden laying some mulch and listening to the radio when a GM commercial came on. The government approved CEO spoke in serious tones about being proud of paying back the loans because the company is in such better shape now.

I laughed so hard that I actually tipped over and fell into my lamb’s ear.

myrenovations on April 23, 2010 at 10:40 AM

I am already looking at that new commercial that GM is running with its CEO strutting through a sparkling clean plant while crowing on how they paid back the “loan” (aka the bailout) the government gave them “with interest” with a questioning jaundiced eye.

Because each time I drive by a GM dealership, I see new cars collecting dust out there in the lot with nary a customer walking around looking at any of them, nor do I see any spanking brand new GM cars zoomimg up and down the highways where I live.

So where did GM suddenly cough up all this cash to pay this thing back “with interest”?

Something stinks here, and it ain’t that “new car interior” aroma!

pilamaye on April 23, 2010 at 10:40 AM

Bottom line:

Ed Whitacre is a lying scumbag who thinks we’re too stupid to see past his bullsh#t.

pain train on April 23, 2010 at 10:41 AM

People are going to look back at this one day and realize they’ve lived through the largest theft in world history with all the bailout / too-big-to-fail crap.

BowHuntingTexas on April 23, 2010 at 10:41 AM

There is a good question this raises, as others have pointed out. Where did GM find all of this money after just 1.5 years? They haven’t been doing blockbuster business lately and it would take many years of outstanding sales and profits to pay all of that money back. Plus, they still have those astronomical unfunded pensions. On the face of it, it’s obviously BS.

AUINSC on April 23, 2010 at 10:41 AM

GM Sale Order (Bankruptcy)

http://www.scribd.com/doc/17125193/GM-Sale-Order

canopfor on April 23, 2010 at 10:42 AM

I think Bernie has a good point for his appeal. What he did was the same thing the govmint has been doing for over 60 years. Why was it illegal for him but ok for the govmint? Because they said so. So shutup and pay your damn taxes.

Kissmygrits on April 23, 2010 at 10:42 AM

Shouldn’t the new GM ads be pulled for misinformation? Doesn’t this make their claim a fraud?
Often companies that do this are forced to make a retraction in the same market place they placed the false ad.

right2bright on April 23, 2010 at 10:45 AM

From the first line of their “investor information” page:

We are undergoing radical change

Where have I heard that phrase?

faraway on April 23, 2010 at 10:46 AM

Aren’t there laws about false advertising?

Cindy Munford on April 23, 2010 at 10:47 AM

Toyota should start a TV ad discrediting GM (a little payback)

faraway on April 23, 2010 at 10:47 AM

People are going to look back at this one day and realize they’ve lived through the largest theft in world history with all the bailout / too-big-to-fail crap.

BowHuntingTexas on April 23, 2010 at 10:41 AM

No they aren’t…too busy digging through the trash cans looking for something to eat…causing a disaster is the easiest way for these types of leaders to obscure the facts.

right2bright on April 23, 2010 at 10:47 AM

right2bright on April 23, 2010 at 10:45 AM

I agree!!!

Cindy Munford on April 23, 2010 at 10:48 AM

At least when Lee Iacocca made his commercials, he was telling the truth!

Mr. Grump on April 23, 2010 at 10:49 AM

Aren’t there laws about false advertising?

Cindy Munford on April 23, 2010 at 10:47 AM

Wiki

Advertising is regulated by the authority of the Federal Trade Commission, a United States administrative agency, to prohibit “unfair and deceptive acts or practices in commerce

faraway on April 23, 2010 at 10:49 AM

I agree!!!

Cindy Munford on April 23, 2010 at 10:48 AM

You were posting the same thing when I posted mine…I think everyone knows a retraction would be forced on any other company.

right2bright on April 23, 2010 at 10:51 AM

I thought it was common knowledge. We’re not supposed to question the brightest, most elite, most transparent, most ethical congress? Because after all, we’re so stupid, we couldn’t possibly recognize when the wool is being pulled over our eyes!!!

capejasmine on April 23, 2010 at 10:52 AM

OT but just read this at hardblogger- Chris Matthews commenting on Joe Biden’s gaffes:

This team makes sense. For all Joe Biden’s over-enthusiasms, for all his “wished-I-hadn’t-said-that’s,” he balances well the president’s coolness. And they both know it.

CWforFreedom on April 23, 2010 at 10:52 AM

In leasing, the auto lender, not the consumer, takes the risk that the car’s value at the end of the lease may be less than predicted. High gas prices, low demand and the U.S. recession clobbered used-car values in 2008. That generated billions in losses for major auto lenders, including GMAC, Ford Credit and Chrysler Financial. And in turn, that hurt their ability to make new-car loans and leases. GMAC had a net loss of $10.3 billion for 2009.

The lion’s share of GMAC’s financial problems can be laid at the feet of its mortgage operation, which cratered in 2007, thanks to the drop in subprime mortgages. That signaled another big ripple effect: the start of a retreat in the housing market, and ultimately the whole financial industry.

That’s not to say it’s all smooth sailing for auto lending. Overall demand for autos is still low, even though quarter to quarter, GMAC is increasing its number of new loans (see chart). In the fourth quarter of 2009, GMAC’s Global Automotive Services unit had net income of $309 million, versus a net loss of $346 million in same period the previous year. For all of 2009, GMAC’s automotive sector had net income of $655 million, down from $2 billion in 2008.

For 2010, GMAC said today it expects continued weakness in the overall economic environment, including high unemployment and “stress” in the capital and housing markets.

Chart: GMAC

=================================
=================================

http://industry.bnet.com/auto/10003860/ripple-effect-used-cars-can-help-or-hurt-new-car-business/

canopfor on April 23, 2010 at 10:53 AM

Question. Are Obama, and company that completely stupid they think the American people would buy this crud, or is this yet another in a long line of propagandized information being pushed on us, to cover for something even bigger that’s going on?

There is definitely a pattern going on here, and they haven’t figured out yet, that we’re on to them.

capejasmine on April 23, 2010 at 10:55 AM

I saw a GM commercial with their president bragging that they had repaid their debt in full. I was already aware that they had used other government funds to make the payment.

I think that commercial borders on fraud, an obvious attempt to mislead the public into trusting GM’s financial stability.

Is it good that they don’t need all the money? Yeah, that’s a relief. But pardon my cynisim if I wonder whether they inflated their need to assure their ability to make a false repayment?

EconomicNeocon on April 23, 2010 at 10:55 AM

I guess it’s really no surprise that Government Motors is as despicably dishonest as the corrupt politicians who are now its masters. Count me as one more car buyer who will NEVER buy a GM product.

Cicero43 on April 23, 2010 at 10:55 AM

OT but just read this at hardblogger- Chris Matthews commenting on Joe Biden’s gaffes:

This team makes sense. For all Joe Biden’s over-enthusiasms, for all his “wished-I-hadn’t-said-that’s,” he balances well the president’s coolness. And they both know it.
CWforFreedom on April 23, 2010 at 10:52 AM

It’s really hard not to burst out laughing at that! LMAO!!!

capejasmine on April 23, 2010 at 10:56 AM

Toyota or Honda even, should do a commercial wherein they commiserate with the American car buyer having to pay so much in taxes to bail out GM, so they are going to reduce the price on their top sellers in an effort to make life easier.

myrenovations on April 23, 2010 at 10:58 AM

From the first line of their “investor information” page:

We are undergoing radical change
Where have I heard that phrase?

faraway on April 23, 2010 at 10:46 AM

faraway:Oops,didn’t see your post!!:)

canopfor on April 23, 2010 at 10:58 AM

Sad to say, but after owning 3 Pontiacs I will never buy another GM product again. Oh, and you can add Chrysler to that list too.

search4truth on April 23, 2010 at 10:58 AM

right2bright on April 23, 2010 at 10:51 AM

For what it is worth I have already emailed them through their “Feedback” on advertising at their site. I told them that this stunt only enhanced the “Government Motors” nickname they have acquired.

Cindy Munford on April 23, 2010 at 10:59 AM

This is worse than the status quo.

They are effectively paying back TARP loans with money generated by selling equity in the company to TARP. Instead of debt, the Government has equity in a company that cannot and will not generate profits. We taxpayers now have last-in-line claims on the remaining assets instead of first, as if those claims have any validity after the previous bond holders got shafted…

Sinner on April 23, 2010 at 10:59 AM

I will never ever again buy any GM product, never.

And I am a guy tat never says never, but this is a rare exception.

saiga on April 23, 2010 at 10:59 AM

Absolutely NO Obama Moters vehicles will ever be purchased by any member of my family. For that matter, we are boycotting everything made by UNIONS of any kind, including FORD.

Unions and the Progressive takeover of America are the enemy of freedom and liberty.

Keemo on April 23, 2010 at 10:59 AM

faraway on April 23, 2010 at 10:49 AM

Is it worth a complaint or would it just be one government entity protecting another?

Cindy Munford on April 23, 2010 at 11:00 AM

we have another good reason for government to refrain from bailing out private companies

C’mon Ed, when has Zero’s Federal Government ever listened or applied common sense?

SeniorD on April 23, 2010 at 11:01 AM

If Toyota made an ad with such a blatant lie, they would fined by the government. Hey, gotta get the money to keep the $ rolling into the unions from somewhere.

humdinger on April 23, 2010 at 11:01 AM

Contract with America:
1. Dismantle unions
2. Repeat

faraway on April 23, 2010 at 11:01 AM

Is it worth a complaint or would it just be one government entity protecting another?

Cindy Munford on April 23, 2010 at 11:00 AM

I am trying to remember how to work the “Bat Signal” to Sarah Palin’s Facebook account :)

faraway on April 23, 2010 at 11:03 AM

Didn’t check kiting used to be a fraud?

Tennman on April 23, 2010 at 11:03 AM

Contract with America:
1. Dismantle unions
2. Repeat

faraway on April 23, 2010 at 11:01 AM

faraway:Correction:)
————————–
1. Dismantle unions
2a. Repeal
2b Repeat

canopfor on April 23, 2010 at 11:04 AM

The CEO of GM says that’s heard that many of us don’t want to ever buy another GM product … and he says … “I can respect that”.

Very good …

Because I never will buy GM again.

HondaV65 on April 23, 2010 at 11:04 AM

But the GM CEO told me in his commerical that GM paid off their debt with interest.

txag92 on April 23, 2010 at 10:20 AM

And taxpayers presumably paid for that ad.

It’s impossible to take anyone of the a**holes associated with this administration at face value. Everything they say and do must be investigated backwards and forwards just to determine whether they’re telling the truth.

When did Americans become so dishonest?

BuckeyeSam on April 23, 2010 at 11:10 AM

I saw this interview yesterday with Neil Cavuto….what a laugh that was. Neil asked the moron straight out if this wasn’t just taking from one pocket and putting it into the other. Moron continued to “scoot” around the answer. Imagine that!
Also, this is MY money and YOURS! We own GM not the moron-in-chief or his cronies and I WANT MY MONEY BACK!
Thank goodness, I own a VW Golf and it now has 123,000 miles on it and (keeping fingers crossed) still goin strong.

sicoit on April 23, 2010 at 11:10 AM

faraway on April 23, 2010 at 11:03 AM

LOL! If I may borrow from another movie, it is not good for one person to be “our only hope”.

Cindy Munford on April 23, 2010 at 11:10 AM

Be a patriotic American. Buy Toyota. Seriously, they make Tundras in San Antonio.

Mr. Joe on April 23, 2010 at 11:11 AM

I might add this:

The violence taking place across the country right now is coming by way of UNION thugs. Have we seen any one of these thugs prosecuted and locked up for such violence?

Keemo on April 23, 2010 at 11:11 AM

By the way, Liz MacDonald on Fox Business site says that taxpayers might still be on the hook for over $15B in union worker pensions if GM can’t meet the demand. Double whee…

jdfister on April 23, 2010 at 11:13 AM

Absolutely NO Obama Moters vehicles will ever be purchased by any member of my family. For that matter, we are boycotting everything made by UNIONS of any kind, including FORD.

Unions and the Progressive takeover of America are the enemy of freedom and liberty.

Keemo on April 23, 2010 at 10:59 AM

I respect that, but I will buy Ford. At least they didn’t sleep with the govenment goons.

saiga on April 23, 2010 at 11:14 AM

If I wasn’t a victim of The Won’s national unemployment plan I would not only buy a Ford but I would buy their stock.

Cindy Munford on April 23, 2010 at 11:14 AM

I own (3) Ford trucks in my business; 1- Ford truck for my youngest son, Toyota Rav 4 for my oldest son and my wife.

When it’s time to replace the work trucks, it will not be Fords unless they go non-union by that time.

Keemo on April 23, 2010 at 11:14 AM

It’s impossible to take anyone of the a**holes associated with this administration at face value. Everything they say and do must be investigated backwards and forwards just to determine whether they’re telling the truth.When did Americans become so dishonest?BuckeyeSam on April 23, 2010 at 11:10 AM

As a default position just assume they are lying. If it turns out they were telling the truth we can be pleasantly surprised.

Aviator on April 23, 2010 at 11:15 AM

Be a patriotic American. Buy Toyota. Seriously, they make Tundras in San Antonio.

Mr. Joe on April 23, 2010 at 11:11 AM

Maybe so. I never drove one, usually F150′s. I heard they had rust problems.

saiga on April 23, 2010 at 11:15 AM

saiga on April 23, 2010 at 11:14 AM]

I agree whole heartedly….. My problem is they are still a UNION company, and my family is boycotting anything UNION.

Keemo on April 23, 2010 at 11:16 AM

The government has been robbing Peter to pay Paul for a long time. Why would you expect any different from a company they own?

Kafir on April 23, 2010 at 11:16 AM

Wow, and to read the breathless AP report yesterday, you would think that everything had worked out just fine.

WisCon on April 23, 2010 at 11:17 AM

Mike Shedlock nailed it with his analysis a couple of days ago:

With GM still losing money on top of all those issues why did GM repay TARP? The likely answer is to get out from under TARP restrictions on CEO and executive pay.

With the Obama administration crowing about the “success” of this bailout, let’s go back to the beginning, to those $45 billion in loans. Had the government not made those loans (now converted to equity), GM would have gone bankrupt just as it did. GM would likely be producing cars just as it is now, taxpayers would not be out $45 billion, and GM would not be Government Motors.

The bailout was a total and complete failure.

Mike Honcho on April 23, 2010 at 11:18 AM

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