Cost of GM Bailout Currently Sits at $34 Billion...

[84Deac]

http://news.investors.com/article/616849/201207030826/gm-bailout-taxpayer-loss-rises-as-shares-fall.htm

This article really lays out the full picture quite well. A big payoff to the unions. Profits were artificially inflated due to the Japanese earthquakes/tsunami. But now GM's profits are dwindling and the stock is tanking. Combined with the screw job the bondholders received to the benefit of the unions and the price of this bailout is even higher.

The fact of the matter is that while the unions made some concessions, GM is still at a cost disadvantage when it comes to labor. Not a good long term bet for all that money.

 

[Liquid Karma]

Biggest vote buy in the history of the world!!!1111!!RJ!!!!

 

[jhmd2000]

People who think that the GM bailout was anything other than a grotesque Union subsidy deserve intellectual pity.

What was so special about Union jobs in Michigan? Where was the flood of borrowed money for a bailout when they were shuttering furniture factories and cotton mills in North Carolina? Why do my grandkids have to pay back a bail-out for the great, great grandparents of their fat midwestern peers? The world cannot go on without realizing that unsustainable, naieve promises of collectivism are, well, unsustainable and naieve? We just had(!) to borrow our way out of that reality? Really? Absolute idiocy.

 

[94Deac]

People who think that the GM bailout was anything other than a predictable attempt at buying votes deserve intellectual pity.

See how that works?

 

[RJKarl]

Let's say there was no GM bailout and 1M lost their jobs. At $400/wk for unemployment, it would have cost the government over $1about $20B/year.

Add the cost of the government picking up most of the COBRA that they would do. How about Medicaid expenses?

How about the loss of state and federal income tax revenues from the people who would be out of work?

How about the sales taxes not collected?

How about the goods and services not purchased?

 

[Liquid Karma]

You keep insisting that GM would have closed their doors and every last employee would have been on the street.

 

[DeacMan]

You keep insisting that GM would have closed their doors and every last employee would have been on the street.

Shhh . . . he's not heard that companies "reorganize".

 

[RJKarl]

There was no money to keep them open. The feds had even approached Bain to help fund the companies. The reality is there was no private money available to them.

The concept that this was union bailout is ludicrous as they gave up tens of billions in concessions. They also lowered benefits and pensions. They lowered starting and ending salaries for new employees.

 

[BillBrasky]

Had to keep them union dues coming in. It's what fills the DNC coffers.

 

[Go]

You are exactly right.....again.

You better add 84 to your block list you dummy.