General Discussion

Recursion

(56,582 posts) Wed Dec 11, 2013, 01:52 AM Dec 2013

So, the GM bailout lost $10 billion and the bank bailout made the gov't $26 billion

We still don't know about AIG, but it will probably turn a small profit for the government. This is a large reason why I'm less angry about TARP than a lot of the country seems to be: it stopped the collapse of the financial sector, and made the government enough money that we could also bail out GM with the proceeds. Win-win.

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So, the GM bailout lost $10 billion and the bank bailout made the gov't $26 billion (Original Post) Recursion Dec 2013 OP

The Center for Automotive Research show effect of GM Bailout - very positive Narraback Dec 2013 #1

Yup, and all paid for by the profits from the wall street bailout Recursion Dec 2013 #3

A loss of our auto industry would have been a major loss of our capability to compete in this world. Old and In the Way Dec 2013 #2

So the ends justify the means? 1000words Dec 2013 #4

What was so bad about these means? Recursion Dec 2013 #5

Where is that "profit" going to go? 1000words Dec 2013 #6

In that it went to the treasury, some of it is. $10 billion went to GM and its supply chain Recursion Dec 2013 #7

It was a heist, plain and simple. Your defense of it is perplexing, to say the least. 1000words Dec 2013 #8

Your lack of understanding re: the math on this is perplexing Pretzel_Warrior Dec 2013 #9

How was it a heist? The government made money. Recursion Dec 2013 #10

Narraback

(648 posts)

1. The Center for Automotive Research show effect of GM Bailout - very positive

Reply to Recursion (Original post)

Wed Dec 11, 2013, 01:59 AM

Dec 2013

http://www.cargroup.org/?module=News&event=View&newsID=70

ANN ARBOR, Mich., Dec. 9, 2013– A newly-released report by the Center for Automotive Research (CAR), a nonprofit research organization based in Ann Arbor, Michigan, estimates the value to the U.S. economy of the federal government’s intervention to prevent the failure of GM and Chrysler in the beginning of 2009.
.....

The industry shutdown scenario results estimate that the shutdown of GM and Chrysler would have reduced U.S. employment by 2.631 million jobs in 2009 and 1.519 million jobs in 2010. The GM shutdown only scenario effect would have reduced U.S. jobs by 1.196 million jobs in 2009 and .675 million jobs in 2010.

If the final net cost of the U.S. Treasury’s investment is $11.8 billion in unrecovered funds from General Motors and the reported loss of $1.9 billion at Chrysler this would total $13.7 billion in Treasury funds.

In this case, CAR’s results show that the U.S. government saved or avoided the loss of $105.3 billion in transfer payments and the loss of personal and social insurance tax collections or 768 percent of the net investment.

More at link

Recursion

(56,582 posts)

3. Yup, and all paid for by the profits from the wall street bailout

Reply to Narraback (Reply #1)

Wed Dec 11, 2013, 02:16 AM

Dec 2013

Like I said, win-win.

Old and In the Way

(37,540 posts)

2. A loss of our auto industry would have been a major loss of our capability to compete in this world.

Reply to Recursion (Original post)

Wed Dec 11, 2013, 02:13 AM

Dec 2013

Here's what I don't get. Morons want a strong defense...but they want our critical industries to compete with the rest of the world...even though they the world competitors are either subsidized directly or the workers are paid less than a US wage to subsist. Really, morons?