WDEL Blog: Rick Jensen's World Famous Thirsty Thursday Blog
Tuesday, April 27, 2010
Obama's GM CEO: Liar or Not?
If Obama's GM CEO says "We paid back the load in full with interest" and he had to take out ANOTHER government loan to do it, did he lie? You decide.
Sean McAlinden, chief economist at the Ann Arbor-based Center for Automotive Research, points out that the company has applied to the Department of Energy for $10 billion in low (5%) interest loan [sic] to retool its plants to meet the government's tougher new CAFÉ (Corporate Average Fuel Economy) standards. However, giving GM more taxpayer money on top of the existing bailout would have been a political disaster for the Obama administration and a PR debacle for the company. Paying back the small bailout loan makes the new--and bigger--DOE loan much more feasible.
In short, GM is using government money to pay back government money to get more government money. And at a 2% lower interest rate at that
Correction! GM is using OUR money to pay back the gov't.
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