Okay, seems like everyone has seen the ads on TV where the CEO of GM is reporting that GM has repaid all their government loans ahead of time and with interest. GM, President Obama and Vice-President Biden have been all over the press lauding GM for repaying the loans it took from the government last year. But hold on, there is a fly in the ointment that is pretty glaring.
Neil Barofsky, the Inspector General for the bailout, also known as TARP (Troubled Asset Relief Program), came forward this week and announced that GM had indeed repaid the loans, with money it received from a TARP escrow account controlled by the Treasury Department.
So let’s get this straight, rather than GM paying this loan off with monies it earned from the selling of automobiles and thereby being profitable, it used a government controlled TARP slush fund to repay a bailout loan of TARP money. Essentially, they took from one pot of TARP money and put it in another pot of TARP money to pay it off – WHAT.
Where does a person sign up to get that deal? Imagine how easy it would be to pay taxes if this held true for everyone!
Once again it looks like truth in advertising has no affect on the GM and their new advertising; nor is there any truth with senior government officials who called the repaying of these loans (with government money) a major achievement for GM and for the nation.
America owes a big thank you to Mr. Barofsky for his diligent service and honest reporting.
Still driving a Ford,
Bill
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