Taxpayer Fund GM Loan Loss of $10 Billion : Democrats DECLARED Case Closed

It's amazing how the Obama administration can just make false statements about anything that they feel will be to the benefit of the concerned parties. In this case it's the auto makers that were forced into a deal that rewarded the unions and stiffed the bond holders.

Now when it came time to close out the loans that Mr Obama and  the progressive socialist liberal democrats made to shore up failing auto manufactures instead of allowing the market to decide the outcome through bankruptcy, they have declared, Mr Obama gave the word, all loans are paid back.

In truth, the problem is the $10 billion that was left hanging was from the sale of the stock that was priced below the break even mark. But no matter, the unions that own the company, 56% of GM, come out smelling good while the citizens that hold the bonds lose their shirts.

It's just politics as usual especially when it comes to the unions and who votes for the democrats. Private citizens be dammed. Why do they vote for these people? Gruber was right?

Taxpayers Lost Almost $10 Billion on Auto Bailout
Source: Jesse Hathaway, "Taxpayers Lose Billions as Auto Industry Bailout Ends," Heartland Institute, January 2, 2015.

January 6, 2015

The federal government finally announced an end to the auto industry bailout, a product of the Troubled Asset Relief Program. The Auto Industry Financing Program (AIFP) loaned $79.69 billion to American car manufacturers General Motors and Chrysler in 2009 under Presidents George Bush and Obama.

The government declared that all AIFP loans had been repaid in December 2014 after Ally Financial -- part of General Motors -- made its last repayments. But Jesse Hathaway of the Heartland Institute says that taxpayers lost money: of the $79.69 billion paid to the automakers, the government recovered just $70.42 billion.

The loss of $9.6 billion in taxpayer dollars due to the auto bailout, calculates Hathaway, adds up to a loss of $65.75 per American taxpayer.