The truth about the GM/Chrysler bailouts
After many conversations about the GM/Chrysler bailouts, many people are still completely clueless about what was and was not paid back.
I have had conversations about why I choose to drive Fords and not GM/Chrysler and it is simple logic. Ford did not borrow one red cent from us taxpayers. To set the record straight, GM did not pay back all the taxpayers monies.
After a $49.5 billion bailout, GM still filed for Chapter 13 bankruptcy which shut down several vendors whom did production work for GM throughout the U.S. Then our geniuses in the federal treasury department took over the stock of GM and tried to overcome their $49.5 billion mistake and recapture our money they gave GM.
Recently, the treasury department said that it will sell all its stock in GM within 12 to 15 months and suck up the loss. Lastly, GM did pay back $28.6 billion from the auto giant; however, every taxpayer will suffer from this huge loss.
GM, AKA government motors, will have an option to purchase 200 million shares of stock at $27.50 a share. This is pathetic. Two things you will not see in my garage/driveway will be either a GM or Chrysler product.
Source US Treasury/USA Today 12-20-2012.