Obama on GM bailout: “Today, that bet has paid off.”

posted at 9:41 am on December 10, 2013 by Erika Johnsen

I felt the need to post this as an addendum to last night’s news that the federal government has finally sold off their remaining shares in General Motors, mostly because President Obama and his administration’s constant commandeering of economic language that has no place in the realm of the public sector irks me to no end. From the official White House statement:

“When I took office, the American auto industry – the heartbeat of American manufacturing – was on the verge of collapse.  Two of the Big Three – GM and Chrysler – were on the brink of failure, threatening to take suppliers, distributors and entire communities down with them.  In the midst of what was already the worst recession since the Great Depression, another one million Americans were in danger of losing their jobs.

As President, I refused to let that happen.  I refused to walk away from American workers and an iconic American industry.  But in exchange for rescuing and retooling GM and Chrysler with taxpayer dollars, we demanded responsibility and results.  In 2011, we marked the end of an important chapter as Chrysler repaid every dime and more of what it owed the American taxpayers from the investment we made under my Administration’s watch.  Today, we’re closing the book by selling the remaining shares of the federal government’s investment in General Motors.  GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.

Less than five years later, each of the Big Three automakers is now strong enough to stand on its own.  They’re profitable for the first time in nearly a decade.  The industry has added more than 372,000 new jobs – its strongest growth since the 1990s.  Thanks to the workers on our assembly lines, some of the most high-tech, fuel-efficient cars in the world are once again designed, engineered, and built right here in America – and the rest of the world is buying more of them than ever before.

Yes, because a $10 billion loss on the part of that ever-munificent and conveniently faceless benefactor, the taxpayers, is a mere pittance, am I right?

This bailout was not a “bet” or an “investment” in any traditional financial sense of the word. This was not the introduction of good old-fashioned and prosperity-generating free-market competition, but rather the deliberate thwarting of it. President Obama adores the term “investment” as a rhetorical substitute for what, in just about every instance he has applied it, has been little more than straight-up corporate pork (the Department of Energy’s green-energy loan guarantee program springs immediately to mind). It’s not an investment when the federal government has the power to deliberately manipulate market conditions to favor certain players over others, and over the deviating wishes of consumers. It really is just venture socialism.

And I must say, I had no idea we could distinguish between GM’s repayment of “every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration,” rather than simply a lump sum owed to the federal government, nor that the distinction would convey a single iota of actual meaning rather than acting as an empty rhetorical flourish, since his administration enthusiastically doubled down on the practice …but, meh. If President Obama says there is, it’s probably legit.


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A penny here, a penny there…

climbnjump on December 10, 2013 at 9:46 AM

GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.

Then why are we losing $10 billion in this deal?

Doughboy on December 10, 2013 at 9:46 AM

Erika, this wasn’t an investment in GM. It was an investment in the UAW. If GM went into bankruptcy, the UAW would have lost a substantial portion of their pensions. If it were an open shop, I guarantee you that Obama wouldn’t have stepped in.

blammm on December 10, 2013 at 9:47 AM

Thanks to the workers on our assembly lines, some of the most high-tech, fuel-efficient cars in the world are once again designed, engineered, and built right here in America

Yep, right there at the Toyota and Honda plants in the union-free south.

Bishop on December 10, 2013 at 9:48 AM

“Have you driven a Ford lately?”

KS Rex on December 10, 2013 at 9:48 AM

He’s the King of Liars, after all.

22044 on December 10, 2013 at 9:49 AM

The “retooling” of Chrysler wrecked many o’ people and a number of communities.

budfox on December 10, 2013 at 9:50 AM

I have no words anymore. I just want him to go away.

gophergirl on December 10, 2013 at 9:51 AM

As President, I refused to let that happen. I refused to walk away from American workers and an iconic American industry.

“But enough about me, let’s talk about me because pretty much everything is about me. Me me me. I I I. More me now. Me.”

Bishop on December 10, 2013 at 9:52 AM

Come on people, he can’t possibly know that the GM stock sale cost the US taxpayer $10 Billion dollars because he hasn’t read the newspaper yet.

And is he going to have a huge surprise waiting for him when he finds out he shook hands with Raul Castro too.

Johnnyreb on December 10, 2013 at 9:52 AM

Then why are we losing $10 billion in this deal?

Doughboy on December 10, 2013 at 9:46 AM

So the UAW can be $10 billion richer than if GM had somehow avoided bankruptcy.

Steve Eggleston on December 10, 2013 at 9:55 AM

An interesting list of trading losses around the world.

Quick question, Who is #1?, Drum roll, please.

http://en.wikipedia.org/wiki/List_of_trading_losses

climbnjump on December 10, 2013 at 9:55 AM

As President, I refused to let that happen. I refused to walk away from American workers and an iconic American industry.

Which is why I stuck it to senior bondholders, kept the corporate structure nearly exactly as it was before they went bankrupt, AND gave the main driver of the default, the UAW, a seat on the board.

And we only lost 10 billion dollars.

You are welcome America. High five!

Gatsu on December 10, 2013 at 9:55 AM

Guess when you lose 10 billion on a bet, it’s a success. It could have been 20 billion. Such a deal.

iamsaved on December 10, 2013 at 9:56 AM

GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.

Then why are we losing $10 billion in this deal?

Maybe the idea is that they paid back Obama’s money first, but didn’t quite get to paying back all of Bush’s? Sort of like how a movie that makes four times its budget can still wind up “losing” money for tax purposes. You juggle numbers, and you can make almost anything true.

calbear on December 10, 2013 at 9:56 AM

So, every dime Obama “invested” was paid back. The $10 billion loss was BOOOOOOOSH’s money. He’s a rich fatcat, so he can take it.

I will still never buy a GM or Chrysler product.

tdarrington on December 10, 2013 at 9:57 AM

Obama’s as careful with Other People’s Money as Alan Grayson is with his own.

jon1979 on December 10, 2013 at 9:58 AM

I will still never buy a GM or Chrysler product.

tdarrington on December 10, 2013 at 9:57 AM

My family was GM exclusive until Obama. Now we are going Ford or any other car that is made in the USA.

gophergirl on December 10, 2013 at 9:59 AM

Guess when you lose 10 billion on a bet, it’s a success. It could have been 20 billion. Such a deal.

iamsaved on December 10, 2013 at 9:56 AM

In the land where a draconian austerity measure budget cut is a reduction in future budget increases, anything is possible.

tdarrington on December 10, 2013 at 9:59 AM

“Really?”

I assure you it paid off for somebody.

Shy Guy on December 10, 2013 at 10:00 AM

Obamacare is going to be AWESOME.

rogerb on December 10, 2013 at 10:01 AM

GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.

Then why are we losing $10 billion in this deal?

Doughboy on December 10, 2013 at 9:46 AM

Must be that Common Core math.

Bitter Clinger on December 10, 2013 at 10:01 AM

Constitutional law professor, “investment” banker, math whiz…

EastofEden on December 10, 2013 at 10:02 AM

Oh yeah – outside of the waranty-guarantee loan, and the $6.7 billion “flash money loan” repaid with otherwise-unspent DIP financing, GM itself did not repay a dime of what the federal government gave it.

Steve Eggleston on December 10, 2013 at 10:02 AM

Obama “saved” nothing. Had he not intervened GM would have gone through a Chapt. 13 bankruptcy proceeding which would have resulted in much more effective, equitible and legal results than the fiasco he imposed. The whole affair was nothing but a payoff to the Unions.

tommyboy on December 10, 2013 at 10:03 AM

MeanWhile,…….

The Associated Press ‏@AP 46m

MORE: Mary Barra, GM’s senior vice president for global product development, has been named its CEO, says a source: http://apne.ws/1bteWZq
============

The Associated Press ‏@AP 56m

BREAKING: AP source says General Motors is naming product chief Mary Barra as new CEO.
=================

https://twitter.com/AP

canopfor on December 10, 2013 at 10:03 AM

The only “investment” made was with the UAW.

GarandFan on December 10, 2013 at 10:04 AM

tommyboy on December 10, 2013 at 10:03 AM

I believe you mean Chapter 11. Chapter 13 is for personal debt reorganization.

Steve Eggleston on December 10, 2013 at 10:06 AM

I find it odd that Obuggerme -or anyone else for that matter- is not discussing what sort of Federal revenue this “bet” is generating. What is the effective corporate tax rate for GM, and their suppliers, since ’08? I would think that if that 10 billion was being effectively recouped in the continuation of tax collection Oblahblahblah would be trumpeting that.

And gee, in a totally unrelated note, what are UAW and GM mangement/investor campaign donations looking like over the last six years?

M240H on December 10, 2013 at 10:07 AM

I

believe you mean Chapter 11. Chapter 13 is for personal debt reorganization.
Steve Eggleston on December 10, 2013 at 10:06 AM

You are correct – that was a typo on my part. My bad.

tommyboy on December 10, 2013 at 10:08 AM

Generally, I like to choose my own investments, not have the government choose them for me. Especially since they obviously suck at it.

By the way, that’s not capitalism. It’s collectivism.

Since when do we call a $10 billion loss by a company that makes crappy cars underwritten by our tax money a “success”.

The last time that was done it was GAZ in Soviet Russia or perhaps Nazi Germany’s KdF-Wagen…

Every word that comes out of this man’s mouth is a lie.

Marcus Traianus on December 10, 2013 at 10:08 AM

10 billion? You can’t even build a decent website with 10 billion these days.

gwelf on December 10, 2013 at 10:09 AM

I have no words anymore. I just want him to go away.

gophergirl on December 10, 2013 at 9:51 AM

Ditto.

natasha333 on December 10, 2013 at 10:09 AM

Why would they tout this during a supposedly Communist presidency?
 
libfreeordie on December 10, 2013 at 9:23 AM

rogerb on December 10, 2013 at 10:11 AM

The stage is now set for an even bigger bailout of health insurance providers than is already accounted for in ObamaCare.

Bitter Clinger on December 10, 2013 at 10:11 AM

“But enough about me, let’s talk about me because pretty much everything is about me. Me me me. I I I. More me now. Me.”

Bishop on December 10, 2013 at 9:52 AM

I look forward to Obama’s comments regarding Mandela’s funeral – Mandela’s just a supporting role in the great training montage of the Obama epic.

gwelf on December 10, 2013 at 10:12 AM

More Obama Bull . . .t. As usual his Marxist policies have cost this poor sick Republic dearly.

rplat on December 10, 2013 at 10:13 AM

How come Obama isn’t touting all those other great successes from taxpayer help like Fisker, Solyndra, those battery-makers that I don’t remember their names, etc.?

Bitter Clinger on December 10, 2013 at 10:14 AM

Lying is a habit to this administration.

Chessplayer on December 10, 2013 at 10:14 AM

Why would they tout this during a supposedly Communist presidency?

libfreeordie on December 10, 2013 at 9:23 AM

Because he believes the masses are fundamentally stupid and they will overlook the enormous cost this bailout has incurred. He uses smoke, mirrors, lies and deception to control the mindless masses.

rplat on December 10, 2013 at 10:17 AM

You are correct – that was a typo on my part. My bad.

tommyboy on December 10, 2013 at 10:08 AM

It happens. Now where’s the “edit comment” feature? :-)

Steve Eggleston on December 10, 2013 at 10:17 AM

GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.

Then why are we losing $10 billion in this deal?

Doughboy on December 10, 2013 at 9:46 AM

Read carefully. The $10 Billion came out of the other side of the bucket, not the one “his administration” filled with pork.

JusDreamin on December 10, 2013 at 10:19 AM

Obama’s comments has me recalling two lines from the movie Rounders.

The first is “Guys will lay out ten grand to say they sat at the table with Johnny Chan.” and the second:

“It’s immoral to let a sucker keep is money.”

socalcon on December 10, 2013 at 10:19 AM

Tweets All / No replies

Reuters Business ‏@ReutersBiz 3m

GM’s lagging share price under Akerson http://blogs.reuters.com/data-dive/2013/12/10/gms-lagging-share-price-under-akerson/ … by @BenDWalsh pic.twitter.com/rw7OA0FzhB
==========================

https://twitter.com/ReutersBiz/status/410427675904196608/photo/1/large

https://twitter.com/ReutersBiz

canopfor on December 10, 2013 at 10:21 AM

A $10 billion loss = a win? War is peace. Freedom is slavery.

This guy cannot get out of office fast enough for me.

Throat Wobbler Mangrove on December 10, 2013 at 10:22 AM

Actually, a mere $10 billion loss makes GM one of the most successful investments yet by the Obama Administration.

Anyway, Bernanke just ordered the printers to run all night so the U.S. Treasury will be even in no time.

Cicero43 on December 10, 2013 at 10:24 AM

I see Volts,…..everywhere.

WryTrvllr on December 10, 2013 at 10:24 AM

Barack Obama lost $10.5 billion, and he thinks it is a bet that “paid off”?

Vegas has a suite waiting for you, Barack. Because they like your play, sir…

JohnGalt23 on December 10, 2013 at 10:27 AM

don’t forget about the 45 billion allowed to be taken from subsidiary and given to the other tax free to cover debts.
don’t remember the specifics now, just remember was 45Bn untaxed.

dmacleo on December 10, 2013 at 10:30 AM

I refused to let that happen. I refused to walk away

Narcissist in Chief

mankai on December 10, 2013 at 10:30 AM

Then why are we losing $10 billion in this deal?

Doughboy on December 10, 2013 at 9:46 AM

A Billion here, a Billion there…

pretty soon, you’re talking about real money…

ToddPA on December 10, 2013 at 10:34 AM

DETROIT — General Motors announced Tuesday that its chief executive, Daniel F. Akerson, would retire next month and be succeeded by Mary T. Barra, who would become the first woman to lead a major auto company.

For GM’s sake, let’s hope this isn’t just an Affirmative Action move to appease O.

btw – don’t forget that Hannity shilled for Government Motors during the bailout. No guts.

mankai on December 10, 2013 at 10:34 AM

How many meals for the homeless could we buy with $10.5B? How many kids could we educate? How many HIV positive patients could have received desperately-needed medications?

/If Bush

mankai on December 10, 2013 at 10:37 AM

So much lie.

Been discussed before that the ‘GM repaid every dime’ is a lie as well.

The $10billion loss on this is vastly understated.

Midas on December 10, 2013 at 10:38 AM

With this president black is white, up is down, left is right and so on! What an idiot occupies the White House.

fbcmusicman on December 10, 2013 at 10:40 AM

Either the man can not ever tell the truth or Obama is the imbecile I believe him to be. In his child like mind, i think he does really believe that it paid off.

BTW, the UAW thanks you for your kind donation.

jukin3 on December 10, 2013 at 10:40 AM

Yes, it paid off alright. To your union goons. I suppose they will need the extra grease once the hard realities of Zerocare begin to really set in next year. The dismantling of the US economy continues.

ghostwalker1 on December 10, 2013 at 10:41 AM

I have no words anymore. I just want him to go away.

gophergirl on December 10, 2013 at 9:51 AM

You’re far too kind.

Midas on December 10, 2013 at 10:42 AM

Can the Progressives guarantee me that the UAW and GM will not go belly up again in 10 years (or less)?

Has Obama changed their failed business model?

visions on December 10, 2013 at 10:43 AM

Has Obama changed their failed business model?

You betcha!!
Look what he did for all of those successful green companies. The man is a giant in the business world and an economic genius.

jukin3 on December 10, 2013 at 10:48 AM

What a pathetic liar Obama is.

Jaibones on December 10, 2013 at 10:50 AM

GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.

Not exactly – somewhere around $8 billion in “unused” DIP financing was simply “gifted” to GM as it exited bankruptcy under Treasury control.

Steve Eggleston on December 10, 2013 at 10:50 AM

Quick question, Who is #1?, Drum roll, please.

http://en.wikipedia.org/wiki/List_of_trading_losses

climbnjump on December 10, 2013 at 9:55 AM

Somebody had better save this page, because one of the editors for Wikipedia is going to “correct” this “mistake” in three … two … one …

manwithblackhat on December 10, 2013 at 10:51 AM

No wonder he is considering staying around DC when he is out of office, no where else in the world can a $10B loss be considered success.

Tater Salad on December 10, 2013 at 10:52 AM

It’s “paid off” compared to the bet on Solyndra. GM is still in business.

The One said it, therefore, it’s true. Just ask Martin Bizarre or Crithy “Softballs” Matthews.

NoPain on December 10, 2013 at 10:52 AM

If the U.S. lost $10 billion on GM, why did GM employees (white and blue collar alike)receive major bonuses last year?

bw222 on December 10, 2013 at 10:53 AM

I bet Obama makes some amazing bacon-wrapped meatloaf.

rogerb on December 10, 2013 at 10:56 AM

Obama is referring to the political debt that the Union owes him.

portlandon on December 10, 2013 at 11:02 AM

don’t forget about the 45 billion allowed to be taken from subsidiary and given to the other tax free to cover debts.
don’t remember the specifics now, just remember was 45Bn untaxed.

dmacleo on December 10, 2013 at 10:30 AM

ok I was a little off in recollection but just in the machinations of it

http://www.foxnews.com/opinion/2012/05/18/what-gm-bailout-really-cost-american-taxpayers/

In addition to the more than $50 billion given to General Motors in the bailout, the Obama administration quietly snuck in a special tax break for GM, which allows the company to write off approximately $45 billion in post-bankruptcy losses against post-bankruptcy profits.

dmacleo on December 10, 2013 at 11:08 AM

dmacleo on December 10, 2013 at 11:08 AM

Fox News had a typo – it’s pre-bankruptcy losses that GM (and AIG) get to carry over to post-bankruptcy profits. Usually, companies don’t get to do that.

Steve Eggleston on December 10, 2013 at 11:12 AM

Why would they tout this during a supposedly Communist presidency?

libfreeordie on December 10, 2013 at 9:23 AM

In the first place, he’s not a Communist. Communism involves belief in the elaborate religion of Marxism, and would be too much effort for Obama. The claim is that Obama is a socialist. Socialism is politicians rather than owners making decision about how to use capital. The GM bailout is, by definition, a socialist action.

thuja on December 10, 2013 at 11:15 AM

So many people think this guy is a rhetorical genius, but what he really excels at is manipulating language to obscure the truth. It all sounds very credible, especially to LIV’s, and unfortunately the media is only too happy to repeat his BS and give him cover.

Oh, occasionally the WaPo might hand out a few Pinnochio’s, but even that is just a cute little way of glossing over the fact that Obama is a serial liar.

Meredith on December 10, 2013 at 11:20 AM

I refused to walk away from American workers and an iconic American industry.

Says the guy who will gladly walk away from American workers by granting amnesty to millions of illegals.

xblade on December 10, 2013 at 11:28 AM

My family was GM exclusive until Obama. Now we are going Ford or any other car that is made in the USA.

gophergirl on December 10, 2013 at 9:59 AM

similar here. I’ve bought dozens of GM products over the years between my trucks, my wife’s cars and for my kids when they were young. I rebuild old cars and almost always have a project or two going in the garage. I got rid of my last Chevy a couple of years ago. No more.

Although my wife now prefers European cars like Volvos, VWs and BMWs I’ve always preferred American for my ride. I will give a Toyota built in San Antonio a look when I go to replace my F150 though.

DanMan on December 10, 2013 at 11:28 AM

I like how he threw Ford into that mix without mentioning them by name, even though they did not take a bailout, and rode out their downturn through corporate restructuring and retooling their cars with significantly better features.

The previous article says the ten billion dollar loss was worth the phantom job-saving that it engendered. I say there is no benefit they can point to that will rectify the loss of the Saturn brand.

The Schaef on December 10, 2013 at 11:29 AM

Fox News had a typo – it’s pre-bankruptcy losses that GM (and AIG) get to carry over to post-bankruptcy profits. Usually, companies don’t get to do that.

Steve Eggleston on December 10, 2013 at 11:12 AM

you positive on that? I remember hearing a little (very little) on this in 09 (the fox article was just one I happened to hit today) and its my recollection that the gm one went way beyond anything else including a post-bankruptcy loss issue. thats why the 45bn was stuck in my head.
I could be wrong though.

dmacleo on December 10, 2013 at 11:32 AM

Today, that bet has paid off.

TRANSLATION:

Gambling is fun when you’re not using your own money. Losing $10.5 Billion* of taxpayer money doesn’t bother Obama one bit!!!

* The $10.5 Billion figure only represents the most recent loss from this boondoggle, and does not include the $50+ Billion or so stolen from stockholders, suppliers, and other creditors previously. Again, it wasn’t Obama’s money…so no problem.

landlines on December 10, 2013 at 11:34 AM

My family was GM exclusive until Obama. Now we are going Ford or any other car that is made in the USA.

gophergirl on December 10, 2013 at 9:59 AM

Same here. NO MORE!

landlines on December 10, 2013 at 11:36 AM

No wonder (p)Resident Jug-Ears stayed in the public sector. Anyone stupid enough to say that a $10B loss was an investment that paid off is way too stupid to survive in anything but government.

What a feakin’ moron.

PD Quig on December 10, 2013 at 11:45 AM

I might buy a GM or Chrysler when all of the money is paid back and the UAW coughs up their portion too. As to Ford, I’m a bit wary since the UAW that builds Fords somehow benefited indirectly from the union payback Obama wasted our tax dollars on.

iamsaved on December 10, 2013 at 11:53 AM

Although my wife now prefers European cars like Volvos, VWs and BMWs I’ve always preferred American for my ride. I will give a Toyota built in San Antonio a look when I go to replace my F150 though.

DanMan on December 10, 2013 at 11:28 AM

I’ve got a 2500 with a 1500 lb tongue capacity. Any idea if Toyota makes anything capable of pulling 12,000 lbs. ?

I need to replace in a few years.

WryTrvllr on December 10, 2013 at 11:53 AM

Screw GM, the unions and everyone else. I want the money back.

Mason on December 10, 2013 at 12:08 PM

What a pathetic liar Obama is.

Jaibones on December 10, 2013 at 10:50 AM

Actually, he is quite the accomplished liar if you ask me.

44Magnum on December 10, 2013 at 12:11 PM

WryTrvllr on December 10, 2013 at 11:53 AM

Toyota makes a big deal about their towing capacity, what with pulling Chevys out of lakes and 787′s around. My son’s new F150 beats 20 mpg with a regular 4.6 V8 in it. That sure beats the 12-14 or so I get with my current F150 but it has been a very nice vehicle after owning many Chevys and GMCs.

DanMan on December 10, 2013 at 12:13 PM

I sure am glad I wasn’t a GM bondholder so my rights under long-established law and practice couldn’t get trampled by a Feral government determined to help its most vocal and violent constituency. Of course, that doesn’t mean that any other industry group or particular large company won’t have its “deal” altered if the Preezy of the United Steezy decides it shall be so.
.
Tell me again what recourse we have when the lawmakers and law enforcers are lawless and predatory upon the producers and law abiding citizens.

ExpressoBold on December 10, 2013 at 12:14 PM

Actually, he is quite the accomplished liar if you ask me.

44Magnum on December 10, 2013 at 12:11 PM

.
Michelle Øbama is the ultimate authority:

Mitt Romney is a pretty good liar…

ExpressoBold on December 10, 2013 at 12:15 PM

DanMan on December 10, 2013 at 12:13 PM

My current Chevy has an 8.3 liter and I use all of it. Now that kids are grown, I’ll prob do a dually, but I refuse GM from now on. I’d consider Toyota if they make one.

WryTrvllr on December 10, 2013 at 12:20 PM

GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.

VS

$10.5 billion loss. OK media get to work.

…hello? media? are you out there?
guess not.

tommer74 on December 10, 2013 at 12:22 PM

How do I go about writing this loss off on my taxes this year? I’ll need the ‘refund’ to help pay for my healthcare costs in the coming year.

We’re so doomed.

justjulie20 on December 10, 2013 at 12:23 PM

I’ve got a 2500 with a 1500 lb tongue capacity. Any idea if Toyota makes anything capable of pulling 12,000 lbs. ?

I need to replace in a few years.

WryTrvllr on December 10, 2013 at 11:53 AM

Officially, the best Toyota will give you is 10,500 pounds (standard cab 4×2 with the 5.7L). That’s a bit behind both the Ford and Chevrolet half-tons, but neither of those can officially handle 12,000 pounds either.

For that, you need to go to the 3/4-ton/heavy-duty trucks, and only the Big Three make those. Outside of Ram, the 3/4-tons are exclusively the heavy-duty versions.

Steve Eggleston on December 10, 2013 at 12:24 PM

you positive on that? I remember hearing a little (very little) on this in 09 (the fox article was just one I happened to hit today) and its my recollection that the gm one went way beyond anything else including a post-bankruptcy loss issue. thats why the 45bn was stuck in my head.
I could be wrong though.

dmacleo on December 10, 2013 at 11:32 AM

Quite positive, and quite unprecedented. Normally, bankruptcy wipes out the ability to carry forward losses, but GM (and AIG) got their special carve-out from President Carve-Out.

Steve Eggleston on December 10, 2013 at 12:28 PM

“Hello to my Stock-holders. I have good news to share with you today. I sold our interest in a company that was dying. We sold the interest at a $10 Billion loss. This news means that you can take pride in playing a key-role ($$) in taking a poorly-run company that was producing a product that nobody wanted and enabled that same company to continue with those same practices. Based on these results, you can rest-assured that if this company looks for this same kind of help in the future, we will be right there to make the same offer, and then-some! This is such a fun story to tell. Congratulations and thanks again for your efforts ($$).

Barack Obama”

justjulie20 on December 10, 2013 at 12:30 PM

13 billion to stuff the pockets of GM and the unions.

Work harder, fools.

480 thousand per each job oafbama created…

The thug has divided the land into the 1%rs, which he is, and the others, see obama’care’ for concretely who keeps their doctor and subscription plan, and who doesn’t….

Yet, he thinks he’s Mandela.

Go to Hades, him and all who brung/kept him.

Schadenfreude on December 10, 2013 at 1:11 PM

No more UAW vehicles in this family.

Period.

chigger76 on December 10, 2013 at 1:14 PM

I have a rhetorical question:

If Obama really is the smartest man who has ever lived, why was it up to the Democrat Party to find him hiding under his desk in the Illinois legislature?

IndieDogg on December 10, 2013 at 1:23 PM

Quite positive, and quite unprecedented. Normally, bankruptcy wipes out the ability to carry forward losses, but GM (and AIG) got their special carve-out from President Carve-Out.

Steve Eggleston on December 10, 2013 at 12:28 PM

ok, like I said I may have been wrong :)
now I wonder why the post bankruptcy stuff was in my memory, probably something else unrelated to gm.

dmacleo on December 10, 2013 at 1:24 PM

I think the federal government received debt and stock in GM. The debt was repaid. The stock was sold for a $10 billion loss.

Can anyone confirm this?

We are truly living in Orwellian times. This administration doesn’t care if they lie because they know that over 50% of Americans will never know that they lied since the liberal media will never call them out on it.

blink on December 10, 2013 at 1:26 PM

Other than the $360 million loan to take care of warranty obligations during the bankruptcy (somehow scored as DIP financing repaid in some books), GM paid back exactly $0.00 out of its pocket. The $13.4 billion that went to GM under Bush, the $6 billion in loans Obama made prior to bankruptcy, and the portion of the $30.1 billion in available DIP financing actually used during the bankruptcy were all written off for the common and senior preferred stock (retired early at a total amount of just over $2.1 billion).

The preferred stock, and the $6.7 billion “loan” given GM as it exited bankruptcy, were repaid using a portion of the unused DIP financing, roughly $15 billion, simply gifted to GM when it exited bankruptcy.

Steve Eggleston on December 10, 2013 at 1:51 PM

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