"The fact that they’re both controlled by unions and the fact that they both lie ..."
What do General Motors and Barack Obama have in common? The fact that they’re both controlled by unions and the fact that they both lie about how taxpayer money is and will be used.
A few days ago, GM was beating its chest, proclaiming that the company is selling lots of cars and implying that such sales are the reason GM was able to repay a multi-billion dollar government loan several years early.
However, the truth appears to be that GM simply took money from TARP escrow funds to pay down the other government loan, keeping its hands deep in the taxpayers’ pockets.
It’s also worth noting that GM has an outstanding note (debt) to the United Auto Workers union at a higher interest rate than the government loan. What responsible business pays down their low-interest debt first? Perhaps a business that knows it’s sucking the blood from taxpayers and wants to keep paying the union 9% when the union knows it would be all but impossible to earn 9% anywhere else. (I’m not saying that 9% is an unreasonable rate for a loan that risky, by the way. I am saying that to the extent GM actually has free cash flow to pay down debt, they should pay down the high-interest rate debt first.)
GM realizes that its biggest shareholder is the government, namely Barack Obama and not the people of the United States. Thererfore, they know they’ll have support to burn taxpayer dollars in order to enrich the UAW and they know that they’ll have Democrats behind them when they lie about it.
A few days ago, GM was beating its chest, proclaiming that the company is selling lots of cars and implying that such sales are the reason GM was able to repay a multi-billion dollar government loan several years early.
However, the truth appears to be that GM simply took money from TARP escrow funds to pay down the other government loan, keeping its hands deep in the taxpayers’ pockets.
It’s also worth noting that GM has an outstanding note (debt) to the United Auto Workers union at a higher interest rate than the government loan. What responsible business pays down their low-interest debt first? Perhaps a business that knows it’s sucking the blood from taxpayers and wants to keep paying the union 9% when the union knows it would be all but impossible to earn 9% anywhere else. (I’m not saying that 9% is an unreasonable rate for a loan that risky, by the way. I am saying that to the extent GM actually has free cash flow to pay down debt, they should pay down the high-interest rate debt first.)
GM realizes that its biggest shareholder is the government, namely Barack Obama and not the people of the United States. Thererfore, they know they’ll have support to burn taxpayer dollars in order to enrich the UAW and they know that they’ll have Democrats behind them when they lie about it.
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