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> Imagine that your friend gave you $20 for lunch, but agreed that he'd take your iPhone 3GS in return for $17 of it. Except in this case GM wasn't worth what
by anamax 17y ago
> Imagine that your friend gave you $20 for lunch, but agreed that he'd take your iPhone 3GS in return for $17 of it.
Except in this case GM wasn't worth what the feds paid to buy parts of it.
How do I know? Because no one was willing to pay what the US govt paid. It still isn't.
The ownership stake is basically collateral. If they eventually make enough money, they'll pay it back and we'll release the collateral. Just like any other loan.
- philwelch 17y agoIt's not collateral, it's an indication that, just like passenger rail, the market can't support automobile manufacturing in this country[1] so instead we'll use nationalization and massive government subsidies to save otherwise useless jobs[2]. [1] Except for Ford. [2] Specifically, jobs belonging to unionized left-wing voters in Michigan, who need to be shored up during the upcoming elections, since they were far more in Hillary's base than Obama's during the primary. Also, the salaries for those jobs go to union dues, which go to the UAW's political contributions, which go to the Democrats. So basically, the Democrats just voted themselves more public money. Not that the Republicans wouldn't do the same in their place, but....