GM repays billions in government loans

A truly sad day for all the GM-haters...

No one hates GM, they just hate the crappy cars that they've been building for the last 30 years.

GM cars are very crappy I for one would not buy one.

next step... buying their shares back... I wonder if they will buy them back at an inflated price since they would be worth more now.

What is the value of loans and other moneys outstanding?

This is a ruse if there ever was one!

GM used the bail out money that was given to them to pay back the loans! 95% of the bail out money never has to be repaid. Most of the bailout money was a STOCK PURCHASE and now the Gov owns a large percentage of GM. And will continue to do so until the Gov sells those GM shares on the open market.

The ONLY good news here is that GM was able to cut costs enough to stop cash from walking out the door as fast as they had forecasted. Since they now had more cash (now and in the future), than they had planned for, GM used that money to pay off ONLY the loans. Get it? They paid off their loans to us with OUR own money!


The rest of the bailout money is still in their bank account and they will never pay it back unless the Gov sells their shares for an amount equal to or larger than they paid - which would require GM's stock price to more than double - which is highly unlikely.

Imagine this: You need a $1,000 bailout. Your only asset is your lawnmower which is valued at $50. So, I give you $900 in cash for your lawnmower and I give you a $100 loan that you have to pay back in 1 year. Six months later, you decide to use $100 of the $900 that I gave you to pay off the loan EARLY. Good for you! But you still have $900 of my money and I still have a lawnmover that's only worth $50.

Who got the best deal, you or me?

I totally understand what you are saying. But I thought the stock was purchased when GM was hitting rock bottom. It should be easy to more than double the value.

Well put,thstone - I love it!

The bailout of GM was executed by the PREVIOUS administration, which didn't plan much, but kicked the can down the road so that the historic GM bankruptcy would fall under Obama's watch.

The bankruptcy was handled very, very well. Thousands of jobs were saved, from engineering to workers on the factory floor. Labor contracts were re-written, and GM will emerge as a modern manufacturer, free of "heritage" liabilities. A much better deal than taxpayers paying unemployement and pension funds to unemployed GM workers.

I bet the government makes back a ton on GM stock.

the stone +1 so on the money with your lawnmower analogy to a thinker to the libs they dont understand what you are saying so for their sake can you please say it so they understand whats really going on.

Did GM not loose 1.3 billion the last half of '09? This loan payback is simply more smoke and mirrors for the taxpayer to consume. Is this the same GM that announced that the Chevrolet Volt was going to be the salvation of the corporation? What happened to the Volt? Did it simply run out of charge like the parent company? Lawnmowers could be the next marketing strategy for GM and their down-sized company.

The Volt will be on the market this fall, the inital prototypes are on the street already.