Gee, thanks for the DNC propaganda video.

Question - did they pay back the ENTIRE amount they were "loaned", or as in GM's case, was it only the 10% or so of the total amount that was actually classified as a "loan"?

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Just say "NO" to Ethanol - Drive Diesel

Mitchell Oates
Mooresville, NC
'87 300D 212K miles
'87 300D 151K miles - R.I.P. 12/08
'05 Jeep Liberty CRD 67K miles
Grumpy Old Diesel Owners Club

OPM... In this case, Fiat's.
http://www.bloomberg.com/news/2011-05-24/chrysler-repays-u-s-canadian-loans-as-fiat-increases-ownership-to-46-.html

"Chrysler retired the loans by issuing new debt and using money Turin, Italy-based Fiat paid to increase its stake. The repayment comes almost two years after Chrysler emerged from U.S. government-backed bankruptcy reorganization that gave control of the automaker to Fiat. "...............


The U.S. government now owns 6.6 percent of Chrysler, the Canadian governments own 1.7 percent and a retiree health-care trust managed by the United Auto Workers union holds 46 percent, Shawn Morgan, a Chrysler spokeswoman, said in an e-mail.

The Treasury said today it isn’t likely to recover its remaining $1.9 billion investment in Chrysler.

Would FIAT have purchased Chrysler if it were just a shell?

I don't have any inside details, but from what I can see Uncle Sam provided a Bridge Loan to FIAT for the purchase of Chrysler. This allowed FIAT to secure money to pay off the loan at better terms that if it had to have the funds in a hurry.

All in all it appears to have worked out well for the US Gov. Will it work out well for FIAT is the next question.

GM 'borrowed' right at $50 Billion from the US. Last November it paid back $26 Billion and the US still holds 500 million shares of GM. GM still owes $26 Billion.

US ownership in GM was at 61%. It is currently 26%.

If GM stock hits $53 a share the US will break even. It is currently right at $30.75. If the US gov sold all of its' stock today it would bring in $15,375,000,000 and would still need to find $10,625,000,000 to be made whole.

The US government estimates 1,414,000 jobs were saved.

If these jobs pay an average of $45,000 a year, with a personal income tax rate of 15%, that is $9,544,500,000 a year in revenue to the US Treasury. So far the US has made, over the last two years, $19,089,000,000 in personal tax revenue from this deal.

Therefore, if Uncle Sam sold all of his stock today at a loss we would still be $8,434,000,000 ahead on this deal, and every year from now on stand to pick up around $10 Billion in revenue due to this 'bail-out'.

All in all not a bad days work.

The US will recover the $1.9 Billion through the personal income taxes paid by those who continue to draw a paycheck from Chrysler.

It may take a year or so.

What many critics of these deals overlook is that this was not and never could be just a normal business deal and it is wrong to look at it as such. How many banks can loan you money and then, as a part of the loan, get 15% of what you make for the rest of your life?

I think this is a concept known as Merchant Banking. The Medici family made much of their wealth this way and they became one of the richest city-state nations in the history of the world, so it seems to have worked well for them.

Why is everyone so convinced it will not work for us?

Thanks to Jeep, Durango and Ram sales.

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1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Yes Thats all the taxpayers should have funded to keep alive. the cars---300lm is a hideious brick and all of them should be painted terra cotta colored--and no more made.