Since I first heard the GM ad touting that they were repaying the Government loan 5 years early I have smelled a rat. GM has been losing money consistently, have not issued any new equity or debt nor have they sold any major assets that I know of. Those would be the only ways they could raise cash for retirement of existing debt. Even if they have sold any assets the best that could do would be to fund the losses they continue to incur. The odds of them successfully issuing public debt to payoff the government would be slim to none assuming wall-street has any conscience about underwriting debt to a company who through government strong arming in a packaged bankruptcy was able to overrule 200 years of contract law. Remember they were able to screw the bond holders on behalf of the unions who were given a large share of the company using a government equity infusion. Thus on the surface the only place they could be getting the money to repay the loan was from the equity infusion by the US Government. Well surprise, surprise, surprise!. We knew that if any media outlet actually had the guts to report the truth it would have to be FOX as the MSM is a mouthpiece for the propaganda of the White House. Here is a FOX news clip where it is finally being said.
http://www.foxnews.com/politics/2010/04/26/lawmakers-accuse-gm-administration-misleading-public-loan-repayment/?test=latestnews
And if you still think the MSM media is not biased then look at the first MSM posting I could find on Google. Here is the ABC/White House news spin on the same event. See if you think they are even talking about the same event.
http://abcnews.go.com/WN/general-motors-repays-81-billion-government-loans/story?id=10437944
Just found, a week later, this video on Breitbart. This is a very short and good explanation of what really happened.
Reason TV explanation
No comments:
Post a Comment