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Is GM lying to the American people?

Some in Congress are wondering:

A handful of lawmakers are accusing General Motors of misleading the public by continuing to claim as part of its advertising blitz that the auto giant has repaid its government loans "in full." 

General Motors has been running ads on all the major networks claiming the company repaid its $6.7 billion U.S. government loan "with interest five years ahead of the original schedule." General Motors Company CEO Ed Whitacre can be seen in the ad walking through an auto plant as he touts the company's progress. 

But lawmakers, and even the inspector general for the bailout fund GM borrowed from, point out that General Motors only repaid the bailout money by dipping into a separate pot of bailout money. They say the company did not actually use its own earnings to make the early payment and are questioning why executives are making such a big deal out of it. 

"The hype is not the reality," Sen. Charles Grassley, R-Iowa, wrote in a column on FoxNews.com over the weekend. "It is far from clear how GM and the Obama administration could honestly say, much less trumpet in prime time television ads, that GM repaid its TARP (Troubled Asset Relief Program) loans in any meaningful way." 

Grassley wrote a letter last week to Treasury Secretary Timothy Geithner expressing his concerns and asking for more information about why the company was allowed to use bailout money to repay bailout money. 

I have a reason. 

It's because Obama is, by proxy, now running GM and Obama is all about fooling the people all of the time. It's in Obama's best interest, not GM's, that GM look as if it's turned the corner whether it's true or not.

When you think Obama, you should be thinking shenanigans... and this whole GM ad thing is beginning to reek of the man.

Crossposted at Brutally Honest.


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Comments (14)

Good little commiecrats tha... (Below threshold)
Don L:

Good little commiecrats that they are, have been caught merely robbing from Peter to Pay Paul (Please forgive the reference to religion with these types)

To get more secular: they taxed you and me to bailout a company which they then, under the "a crisis is too good to waste" meme, then stole the company from the rich and evil owners (you and me again) so they now pretended to have earned by sales, money that they really got from you and me but actually took it from other money that they took from you and me. And you and me are supposed to just adore Obamanomics?

Keep your government corprations and its union cronies and your economic sleight of hand -I'll buy imports or Fords (made down south)

Look GM has to appear to py... (Below threshold)

Look GM has to appear to py back the money Early.
The majority of Big banks paid it back with interest and BHO did not get to fire their CEO.
So the one had appear like he was shred and that the leadership he approved accomplished something impressive.

He did not think anyone would really look at it.
This has been out for few days and the MSM still not reporting it as front page news. What it some one invest and loses money based on these false claims.

The GM bailout is remarkabl... (Below threshold)
Jim Addison:

The GM bailout is remarkably like bankruptcy would have been, with a couple significant differences. The creditors and investors were screwed a bit worse than they might have been through bankruptcy, but the use of billions of taxpayer cash ensured minimal pain to the unions, and fewer restrictions on GM management going forward (including new and ongoing commitments to unions) than there would have been under the supervision of a bankruptcy court.

Also, GM management is left in the position of having a huge new stockholder in the form of Barack Obama (doing business as The United States government) casting a long shadow over its actions. It is very doubtful they will do anything not cleared by Barry in DC, or even attempt anything which might make the New Boss look bad.

The final difference between Obama-Motors and a bankruptcy proceeding is that the underlying problems aren't solved, just kicked down the road a few more years. But Barry's peeps are happy, and it only cost a few billion to keep them happy. Don't worry, taxpayers! He'll just put it on the credit card . . .

Go Ford!They made ... (Below threshold)

Go Ford!

They made a lot of money in their first quarter earnings report without a bailout or takeover.

Ford produces a better product as well.

Jim #3, A "bit" worse? How ... (Below threshold)
NJ Mike:

Jim #3, A "bit" worse? How about Uhhhbami tossed out decades of settled bankruptcy creditor priority and SCREWED the bondholders and investors?

NJ Mike @ #5 ~ Okay, you ar... (Below threshold)
Jim Addison:

NJ Mike @ #5 ~ Okay, you are right. They were screwed, all right. I just don't think they would have come out very well under traditional bankruptcy, either. GM's capital assets, which might in a normal process have been subject to sale, consisted largely of money-losing factories for which no buyers were apparent. But, yes - whatever they might have salvaged of their investments was taken from them and given to union workers and pensioners in an act of government fiat.

The longer-term effect will be to make it harder for all troubled manufacturers in the USA to sell bonds after the Obama precedent.

RE: "It's in Obama's best i... (Below threshold)

RE: "It's in Obama's best interest, not GM's, that GM look as if it's turned the corner whether it's true or not."

I don't agree. In recent surveys GM is one of the most hated companies in America, and that's because of the bailouts. (Most of the companies on those top-ten lists took bailout money.) If they can convince people that they've paid it back, they might be able to get out from under the stigma of taking the bailout money, and they will help ease concerns that they are about to go under.

Ford, on the other hand, didn't take bailout money, and they are making the lists of well-liked companies. They also made a profit last year.

Well, just wait until the F... (Below threshold)
Caesar Augustus:

Well, just wait until the FDIC has to get bailed out. GM is the tip of the iceberg...

What I don't understand is ... (Below threshold)
geo Author Profile Page:

What I don't understand is how a company that has not turned a profit in years could get credit for paying back $8 billion dollars. No one asked this question? Where is the MSM? Where are out fantastic senators and reps? Are we that stupid? The ones who are getting taken for a ride is US. Go FORD!!!

Since Barrys running the jo... (Below threshold)

Since Barrys running the joint now, on our dime, there should be truth in advertising even with the hustler in chief involved.

Rename GM to GACFJM.. General Assistance Cash For Junker Motors! Yeah, right up Barrys con ass alley.

Think of how many millions ... (Below threshold)

Think of how many millions of our tax dollars went to GM's purchase of tv and newspaper ads.

They have successfully become as wasteful as Washington bureaucrats.

We can all affect this situ... (Below threshold)
Constitution First:

We can all affect this situation.

Don't buy Government Motors.

You have lots of good alternatives, even if you insist buying American, Ford makes great products and their workers took concessions as not to take it up the poop-shoot from Barry of the North and his Flying Monkeys.

After driving the big four of the 1/2 ton pickup market, I opted for the F150. It was an easy choice.

Where's Bruce Henry to defe... (Below threshold)

Where's Bruce Henry to defend his Obamassiah?

I heard a saying "How can y... (Below threshold)

I heard a saying "How can you tell if (Fill in Blank) is lying? Answer: His lips moved.






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