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3 Bumps

Can we call this a boondoggle?

I have seen people come and go in here insisting on the fact that GM paid for their bailout in full. However, it looks as though taxpayers are getting thrown under the $13 BILLION dollar bus.

Still, taxpayers will almost certainly lose billions of dollars in the $49.5 billion GM bailout - and the government would need to sell its remaining shares for about $70 each to break even. If the government sold the rest of its stock at current prices, taxpayers would lose more than $13 billion. But profits from the bank and AIG bailouts will largely offset the auto bailout losses.

From The Detroit News: http://www.detroitnews.com/article/20121219/AUTO0103/212190382#ixzz2FbNhP3rT

Another question, does the fact that profits from the bank and AIG bailouts offsetting the loss of taxpayer money for the auto bailouts make this okay?  And if speculation is correct and GM goes through another bankruptcy, would you support another bailout to the auto industry?

 
QuinnMae

Asked by QuinnMae at 9:23 AM on Dec. 20, 2012 in Politics & Current Events

Level 48 (291,805 Credits)
This question is closed.
Answers (5)
  • Yes we can
    The were paid I think $53.00 a share aproximately and they will buy them back from the government at a "generous" $27.80.

    I am not exactly sure of the numbers but it is reall close.
    Dardenella

    Answer by Dardenella at 12:03 PM on Dec. 20, 2012

  • Nobody seems to care if the taxpayers lose money. It happens over and over again. Boondoggle is a good word for it.
    Ballad

    Answer by Ballad at 12:16 PM on Dec. 20, 2012

  • We the american people are the shareholders losing the money.
    Dardenella

    Answer by Dardenella at 1:13 PM on Dec. 20, 2012

  • " And if speculation is correct and GM goes through another bankruptcy, would you support another bailout to the auto industry?"OP


    HELL NO!!! 


    If GM ends up having to bail out again, they would be better off filing  bankrupsky. It would give them a new start, ther Unions would have no choice except to negotiate another contract with GM. And then, and I know this this probably is a pipe dream, but then GM may be able to come back to MI, open up the plants that were closed, cause MI will be a right to work state and the Union will not have the power they once did, and negotiate a higher contract. And another plus, they will be under no obligation to hire the laid off workers from when they closed down a plant. They can hire folks from the street and still offer them a good working wage, but it wouldn't be at no $20 an hr or whatever.

    Michigan-Mom74

    Answer by Michigan-Mom74 at 5:39 PM on Dec. 20, 2012

  • How about giving some of that to the shareholders who were left holding the bag on GM's old stock.
    RyansMom001

    Answer by RyansMom001 at 12:23 PM on Dec. 20, 2012

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