The government lost approximately 11.2 billion dollars in
total when it bailed out General Motors. This loss came from multiple sources.
The government lost $826 million when they wrote off old GM investment, and when
the government originally bailed out GM it cost them approximately $50 billion.
When GM went into bankruptcy in 2009, the governments original investment had
been converted to a 61% equity stake, preferred shares and a loan. To make sure
the governments investment in GM did not become overwhelming, the government
sold stocks of it. Even though this bail
out cost the government a lot of money, it saved 1.5 million jobs domestically.
http://www.huffingtonpost.com/2014/04/30/gm-bailout-cost_n_5240260.html?utm_hp_ref=business
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ReplyDeleteLook as college kids, the jobs out their are scarce so saving 1.5 mill jobs to keep American families stable and keep the unemployment rate at a minimum is a power move and a hell of a risk, but it shows that the government does care about its citizens and keeping the american car factories running.
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