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Thursday, April 22, 2010

Mish's Global Economic Trend Analysis: GM Repays Government Debt; Was The Bailout A Success?

Mish's Global Economic Trend Analysis: GM Repays Government Debt; Was The Bailout A Success?

1 comment:

  1. GM sales are due to car rental and other fleet companies which are buying GM's products yet last 2009' quarter reported losses and this year is heading on the same direction....the company's profits are also due to restructuring under the bankruptcy law plus lay offs and many other expenses cuts...have to mention that GM paid the government what they do not say is that the government's loans were reduced in exchange for more stocks in the company...even after paying the government owns 60% of GM's stocks....this small company has another burden: the pension fund which still look and operate like a big company....GM is facing a problem: for 2013 or 2014 the money that owns as pensions will short fall to be paid and the government might step in to help...the problem is that the government does not guarantee the amount owned which means less pension money ...in short the government has $ 45 billions in stocks in GM...and i havent mention anything about chrysler which is on the same predicament

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