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GM paid Government Debt with more Government money? A game of politics and marketing?

Anyone seen the commercial with the new GM exec stating they paid off their government debt? Is it false advertising when they had to use GOVERNMENT money to pay it off?
Is this a Political Shell Game?
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Charles Grassley: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.

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 3:00 PM on Apr. 23, 2010 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (6)
  • 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.

    grlygrlz2

    Answer by grlygrlz2 at 3:01 PM on Apr. 23, 2010

  • LOLOLOL what a joke! Here there were a few on here bragging about this debt being "paid off" bunch of SUCKERS!
    Anonymous

    Answer by Anonymous at 3:14 PM on Apr. 23, 2010

  • Sounds sort of like saying you paid off a credit card just by transferring a balance to another card. It is a shell game and they seem to be pro's at it.

    QuinnMae

    Answer by QuinnMae at 4:48 PM on Apr. 23, 2010

  • Quinn, that is exactly it. GM still OWES the government billions, they simply used a balance transfer. Unfortunately, many gullible people will believe the bail-out worked, when in fact nothing has changed.
    mancosmomma

    Answer by mancosmomma at 7:16 PM on Apr. 23, 2010

  • THey even have an ad on tv telling us they've paid the government back. That other bill must have been buried on someone's desk
    sopranomommy

    Answer by sopranomommy at 10:09 PM on Apr. 23, 2010

  • They were instructed to tell America they paid back all their loan. Even had Biden come out and say how great it was that they paid ALL of their loan. Fact is they left out ALOT of truth there. Thats the Obama way, why would yo ube surprised.
    itsmesteph11

    Answer by itsmesteph11 at 9:57 PM on Apr. 24, 2010

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