Taxpayers get to hold GM empty bag. From 1.5 million workers in 1979 to 390 thousand today, GM did not need a taxpayers bail-out. SHAME ON GM! Chrysler paid their bail-out seven years early.
Sentiment: Strong Sell
GM has already paid the government back for the bailout twice over.
1. The auto bailout saved the auto industry (GM, Chrysler, auto parts makers) over a million jobs. Each of those jobs that were saved are paying taxes (income, Medicare, Social Security). It the average tax bill is $10,000 each then the government added $10 billion per year to their income that they would not have gotten if the auto industry went under. TOTAL GOVT INCOME: $40 BILLION.
2. Conversely those people who kept their jobs were kept off of unenployment lines and probably food stamps and welfare that the government would be forced to pay: TOTAL SAVINGS IN GOVT EXPENDITURES: $15 BILLION.
3. AND the government got 500 million shares of GM stock in the deal: TOTAL NET WORTH AS OF NOW: $13 BILLION.
For what the government spent they got $68 billion in return. Quite a deal. If anything the taxpayers owe GM a big thank you for giving the governmet the opportunity to make a big profit on the deal
Right on Gatorblue, you pointed out the whole picture. The Thanks needs to go back to many things GM has done for Americans over the years. Like WW11, Ann Arbor Medical Center. The same for Ford with with Ford Hospital. The companies and employees are always been first to help in the time of a disaster.
Sentiment: Strong Buy