The GM TV commercial said nothing about paying the government loan from earnings. Congress approved funds to help GM in its day to day operations. The fund were place into escrow. GM can request the funds as needed, and have them release for operations, I assume, with authorization from the escrow agent, (eg USA government).
Using funds from the escrow account still reduced GM's overall debt to Americans, which is a good thing; since, the total obligation to the people of America include the money in escrow and other debt owed to the USA government. Therefore, GM was able to reduce it debt to the USA government by simply returning some of it. The 50 billion, (eg 20 billion loan plus 30 billion purchase in the new GM), is not a debt. It is an investment in non-voting stock in GM, (eg USA equity in the new GM Corporation). Regards, LelandJ On 04/27/2010 08:52 AM, Nicholas Geti wrote: > The commentators on CNBC on Friday said that GM took free money from one of > the TARP slush funds to repay the loans. Repayments did not come out of > earnings. GM had been bragging all week that their sales were up > significantly and that they were now able to pay back the loans which > implies that the payments came from earnings. But not so. > > > ----- Original Message ----- > From: "Michael Madigan"<mmadi10...@yahoo.com> > To: "ProFox Email List"<profox@leafe.com> > Sent: Monday, April 26, 2010 3:17 AM > Subject: RE: [OT] GM Repays Govt Loans > > > All the former stockholders and bond holders and some dealers got screwed. > Who didn't get screwed? Why the United Autoworkers, that's who. > > --- On Sat, 4/24/10, Carl Lindner<c...@bdos.com> wrote: > > >> From: Carl Lindner<c...@bdos.com> >> Subject: RE: [OT] GM Repays Govt Loans >> To: "'ProFox Email List'"<profox@leafe.com> >> Date: Saturday, April 24, 2010, 2:57 PM >> Not sure you about that.... it seems >> the bond and stock holders lost the >> money. It appears a good number of people were >> shafted and the government >> was an insider. >> >> >>> -----Original Message----- >>> From: profox-boun...@leafe.com >>> >> [mailto:profox-boun...@leafe.com] >> On >> >>> Behalf Of Publius Maximus >>> Sent: Saturday, April 24, 2010 2:19 PM >>> To: ProFox Email List >>> Subject: Re: [OT] GM Repays Govt Loans >>> >>> It repaid the government loans with... government >>> >> money. >> >>> IOW, it's a joke. >>> >>> - Publius >>> >>> On Sat, Apr 24, 2010 at 2:14 PM, Carl Lindner<c...@bdos.com> >>> >> wrote: >> >>>> I was quite surprised with the GM turnaround - >>>> >> they had a lot of >> >>> debt. The >>> >>>> following is from a Corvette mailing list... >>>> >>>> On 4/24/2010 12:02 PM, Mike M..... wrote: >>>> >>>>> So what happened to the old GM? Is it >>>>> >> something we don't talk about? >> >>> a >>> >>>>> Mulligan? a Gimmie? >>>>> >>>>> >>>> ----- The reply by David K... was >>>> >> incredible-------- >> >>>> The GM of old went bankrupt and changed its name >>>> >> to "Motors >> >>> Liquidation >>> >>>> Company". Their new web site is here: >>>> >>>> https://www.motorsliquidation.com/ >>>> >>>> A new company was formed (Vehicle Acquisition >>>> >> Holdings LLC) and >> >>> bought the >>> >>>> rights and assets to GM's products, conveniently >>>> >> neglecting to take >> >>> it's >>> >>>> debt. GM changed it's name to Motors Liquidation >>>> >> and then Vehicle >> >>>> Acquisition LLC changed it's name to "General >>>> >> Motors Company". >> >>>> >>>> [excessive quoting removed by server] _______________________________________________ Post Messages to: ProFox@leafe.com Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/4bd70de4.10...@mail.smvfp.com ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
