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>They literally used loan money to pay back loan money Which is exactly what I said. GM isn't "in the hole" for anything, and what remains in the escrow accoun
by ergo98 17y ago
>They literally used loan money to pay back loan money
Which is exactly what I said. GM isn't "in the hole" for anything, and what remains in the escrow account is theirs free and clear. The governments obviously hope to recoup their "investments" when the company goes public again, which may or may not happen.
They repaid the loan because they ended up not needing the cash. It can't get simpler than that. The only question is whether they overstated their original request, or if they really have turned around enough.
- anamax 17y ago> They repaid the loan because they ended up not needing the cash. It can't get simpler than that. However, the point stands that they received lots of other bailout money, money that they haven't repaid. Yes, that money went for "ownership" and we can hope that is eventually worth more than it cost, but it isn't worth that now and it hasn't been returned to the US taxpayer. Basically, we hold part of GM as collateral. If they fail, we're out the money.
- mistermann 17y agoWow. This is what we refer to as "the real new math". If you're smart, you'll get on board.