Magic trick by GM?!?

[on d bit]

I did not see this posted....

Press releases, national commercials, and emails have been stating that GM has repaid its loan to the US Government(and Canada) in full with interest.

http://www.google.com/hostednews/ap/article/ALeqM5hij2hVGuCY0y8eoe3MwKGnw7WW_QD9F7IM600

How does this work? GM gets 52 billion for the US and 9.5 billion from the North and then has the balls to say these loans are paid in full after paying back 8.1 billion(6.7 to the US, 1.4 to Canada)? Wow! :ack

DETROIT — General Motors Co. has repaid $8.1 billion in loans it got from the U.S. and Canadian governments, a move its CEO says is a sign automaker is on the road to recovery....GM got a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as it went through bankruptcy protection last year. At first the entire amount of U.S. aid was considered a loan as the government tried to keep GM from going under and pulling the fragile economy into a depression.

But during bankruptcy, the U.S. government reduced the loan portion to $6.7 billion and converted the rest to company stock, while the Canadian governments held $1.4 billion in loans. Those loans were repaid Tuesday, five years ahead of schedule.

The kicker is they paid back that 8.1 billion all while losing 3.4 billion in the 4th quarter last year!

The stock offering hinges on GM posting a profit, which Whitacre has said could come this year. GM lost $3.4 billion in the fourth quarter of 2009

Where did that 8.1 billion come from?

http://www.foxnews.com/politics/201...gm-administration-loans-repaid-bailout-money/

Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.

Nice trick GM!:thumbsdow

 

[2112]

Can I get the same deal please. :bored

.

 

[Cobrar]

A proper disclaimer might read: the remaining +$40B is anticipated to be repaid either this year, or next, through an IPO. If the new GM IPO is successful, and fully subscribed, then the ads would be correct. Where I come from, it is a very forward looking statement.

 

[on d bit]

A proper disclaimer might read: the remaining +$40B is anticipated to be repaid either this year, or next, through an IPO. If the new GM IPO is successful, and fully subscribed, then the ads would be correct. Where I come from, it is a very forward looking statement.

That is not what GM is advertising. They are stating that the entire loan from the government/s has been paid off. This is not true. As it stands today GM will be using stocks(probably an IPO) to pay off the majority of the funds later this summer. As for the 8.1 billion they paid back to US and Canada, these funds did not come from GM. They came from another escrow account that our government set up for GM as an additional emergency fund from my understanding. All GM did was transfer debt(8.1 billion), not pay it off!

I am debt free! I paid off my loan with B of A with a 2nd loan from B of A. Nice! :willy

 

[S592R]

fraud.

 

[gtinmyblood]

fraud.

I am in complete and total agreement. IMHO the whole GM fiasco has been fraud from the beginning. Stock holders across the US have been screwed out of investments by the Wall St. Schiesters and the US Govt.

Now why would I want to invest in this upcoming IPO?