What the Conservatives Won’t Tell You – TARP Successes
As for the auto industry, it’s hard to deny that the bailouts aren’t having their desired effect to this point.
The Treasury said Tuesday that Chrysler, six years ahead of schedule, has repaid $5.1 billion in TARP loans and has also terminated its ability to draw a remaining $2.1 billion in more loans.
The repayment is expected to save Chrysler $300 million a year in interest payments. The Treasury said the company has already paid $1.5 billion in interest and fees.
Still, the government, which still holds a 6.6% stake in Chrysler, admits it’s unlikely to fully recover its remaining $1.9 billion investment in Chrysler.
Breaking even on GM is a long shot as well. The Treasury is expected to start unloading its remaining 26.5% stake this year, but it would have to do it at an average price of about $53 a share. The stock is currently trading below its $33 IPO price.
In another positive development, GM, after years of wrenching cutbacks, said earlier this month it will invest about $2 billion in 17 plants across eight states in a move that will add or save more than 4,000 jobs.
Damn, the link did not post.
http://www.marketwatch.com/story/biden-sings-praises-of-auto-industry-bailout-2011-05-28?link=MW_latest_news
Of coarse it worked…cuz Biden said it did…Yea, I’m convinced..:)
I have to tell you John, I was really amazed at the amount of people that were against a bailout of the auto industry. I’m glad that they are doing well, I have several friends and relatives that work for GM.
John…you clamed through the whole post that the tap had not had the desired effect…and then in the last sentence you make the claim that it was a success because 4,000 jobs will be created or saved. I take issue with that…as a job savd is not a job created. They are two different things…am I right? This is how the Obama Administration has been painting the picture…any job they claimed was saved…was counted as the same as a job created. It’s fuzzy Math…and misleading to people. I’m not saying you are doing it on purpose…but it’s like you are using their talking points andhave bought into it hook line and sinker.
As far as the auto industry goes…I don’t think they saved anything…it is still destined to fail…mark my words they will again be back in bad shape sooner than you realize. Why? Because of Union demands. The best thing that could happen to the auto industry in America…is for the Unions to go back to where the came from…the Soviet Union…which is now called Russia. Just my opinion.