Monday, August 13th, 2012 and is filed under News
Obama considers the bailout of GM and Chrysler to be one of the success of his career. But what he fails to divulge is that A) the companies are ostensibly owned by labor unions and B) taxpayers will lose $25 billion. The Treasury published a new report showing that taxpayers will lose “more than expected” on the auto bailouts – as much as $25 billion. This, from the Detroit News:
In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31, when GM’s stock price was $22.20 a share.
On Monday, GM stock was trading down 6 cents, or 0.2 percent, to $20.49. At that price, the government would lose another $850 million on its GM bailout.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout.
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