GM Repaid Taxpayers? BUNK!

Propaganda: General Motors repaid what it owes to taxpayers – $50 Billion in Government assistance. Obama’s bailouts and stimulus worked for America! GM is proof!

FACTS:

The government, taxpayers, gave GM $50 Billion in assistance. Some of it was in loans (about 20%), most of it was in “stock purchases”. It’s still $50 Billion in cash.

GM used its IPO (sold stock) to generate enough cash to repay the “loans”. But it’s never repaid the $33 Billion taxpayers lent it that’s sitting in “shares of stock”.

And the only way we, taxpayers, will ever get repaid will be if GM stock rises enough to cover a $33 Billion bar tab, then issues another series of IPOs to generate that cash. And that will only come after GM raises enough money to cover its unfunded pension liabilities; liabilities for which taxpayers are on the hook as a 33% shareholder.

Someday, perhaps even in your lifetime, GM may get around to paying taxpayers back.

But as of today, it has not.

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