"GM, on the other hand, still owes more than half the $50 billion in federal funds it received when the combination of the recession and its costly union contracts drove it into bankruptcy. And its lending arm, GMAC (now Ally Financial), still owes $14.5 billion.
What's worse, it's not clear that GM actually repaid what it's gotten credit for repaying. Check out this note buried in the inspector's report: "As part of a credit agreement with Treasury, $16.4 billion in TARP funds were placed in an escrow account that GM could access only with Treasury's permission."
As it turns out, GM got Treasury's OK to "repay" more than $6.7 billion "using a portion of the escrow account that had been funded with TARP funds." So GM is merely paying the government back with government money, not money GM is earning selling cars, as the administration has claimed.
Worse, GM in effect is still borrowing money. Consider this item from the report: "What remained in escrow was released to GM." Bottom line: Taxpayers have not been paid back and are still on the hook as GM continues to require government help. Yet Obama has hailed the GM bailout as the signature achievement of his big government programs."
Ironically, this is a case where weather/natural disasters, etc can truly be blamed for an economic outcome, as the O admin. regularly claims, but this time GM narrowly edged out Toyota with the help of a Tsunami---and dubious accounting.
"The GM story is hardly what we're looking for in terms of a recovery.
That Obama is touting it as a top economic achievement speaks volumes
about his policies." Oh well, the UAW is undoubtedly pleased and will confiscate millions from its members for the Obama campaign---whether they want to pay or not.