U.S. auto sales for Q1 are expected to come in at four-year highs after the U.S. economy...

This news story has 9 comments:

Register or Login to rate comments »

Terry330 Comments (836)
 
Keep the US economy growing,vote for ........
2 Apr 2012, 11:06 AM Reply Like

A Newell Comments (327)
 
Auto recovery comes before housing???
2 Apr 2012, 11:33 AM Reply Like

OptionManiac Comments (3064)
 
Bailout for the auto industry? When solving problems, you don't follow a stringent ideology, you do what (hopefully) works. Yes, it was a bailout, but saving jobs is more important than playing extreme capitalism. Capitalism is great, except that humans are running it.
2 Apr 2012, 11:36 AM Reply Like

Tdot Comments (1620)
 
Bailouts are fine, as long as the Taxpayers' money is returned with interest. GM likes to claim it paid off all its loans, but the Taxpayers are still out some $60B, including the TARP money provided by Congress under the Bush and 1Q Obama regime, before the bankruptcy loans and "quick rinse" of GM's old debt. When the "New GM" settles up on the "Old GM" debt, with interest, then we can talk about the fairness of "bailouts".
2 Apr 2012, 11:54 AM Reply Like

OptionManiac Comments (3064)
 
The math is not that easy. No bailout - thousands of more jobs lost. Unemployment payments, food stamps, welfare, loss of tax revenue, both income and sales. An increase in blighted neighborhoods, more downward pressure on housing prices. Bailouts suck, but so does necessary surgery.
2 Apr 2012, 09:09 PM Reply Like

Tdot Comments (1620)
 
Nobody disagrees that the bailout money and fast-rinse bankruptcy was good for GM and the employees, and maybe avoided more economic troubles. That is not an excuse for GM not paying back the favor, plus interest. That is how it is supposed to be.

The problem is that GM still has most of the Taxpayer's money, which was taken at gunpoint under threat of a deeper recession or worse.

Those Taxpayers and their children will be PAYING OFF the resulting DEBT that the government created to save GM, some $60B and change. Meanwhile GM will show nice annual profits, make new shareholders happy, pay dividends, give executive raises, roll around in the pile of cash it accumulated ... and pay absolutely NOTHING back to the taxpayers who provided that nice little kitty.

GM has no shame.

Meanwhile, GM's main competitor, Ford, got up off its @$$, borrowed the money needed to survive, went to work, rebooted its product development system, and is using its nice profits to PAY BACK EVERY CENT, PLUS INTEREST.

GM should do the same, if it wants to regain its soul. The taxpayers, who saved GM, deserve nothing less but payment in full, all $60B, plus interest at junk bond rates.
2 Apr 2012, 09:54 PM Reply Like

OptionManiac Comments (3064)
 
That is not an excuse for GM not paying back the favor, plus interest. That is how it is supposed to be.

Agree with you 100% there.
3 Apr 2012, 04:28 PM Reply Like

nafar Comments (153)
 
With car sales on rise, one can expect break even of Government investment in GM in couple of years time. If things continue to improve the Govt can make capital gain on selling its investment too. Let's be optimistic.
2 Apr 2012, 01:10 PM Reply Like

Tdot Comments (1620)
 
How does the Government (you mean Taxpayers?) break even on the investment? GM says it has paid back the Taxpayers all it intends to pay.

If you mean the 33% ownership in GM shares held by the US Treasury, those are worth maybe $20B. For the taxpayers to "break even", those shares would have to be sold for around $75 each.

But as always, if you dump 33% more shares on the open market, you can expect the price to drop by a third, not triple.
2 Apr 2012, 01:58 PM Reply Like