Why the Big 3 Needed a Bailout and What It Cost the U.S. Taxpayer
Author Message
Aptrgangr
Online
Nulla crux, nulla corona
Supervision



Deutschland

Posts: 2.765
Joined: Mar 2012
Reputation: 619
Post: #1
Why the Big 3 Needed a Bailout and What It Cost the U.S. Taxpayer
Auto Industry Bailout (GM, Ford, Chrysler)

Why the Big 3 Needed a Bailout and What It Cost the U.S. Taxpayer


The government ended its $80 billion bailout of the U.S. auto industry on December 18, 2014. That's when the Treasury Department sold its last remaining shares of Ally Financial (formerly GMAC) for $19.6 billion. By selling when the stock market was high, Treasury made a $2.4 billion profit on its $17.2 billion initial investment in GM's former financing arm. (Source: WSJ, Bank Bailouts Approach Final Reckoning, December 19, 2014)

The federal government took over GM and Chrysler in March 2009. It fired GM CEO Rick Wagoner, and required that Chrysler merge with Italy's Fiat SpA. It took advantage of the take-over, setting new auto efficiency standard to force the companies to become more competitive against Japanese and German firms.

In return, it bailed out both companies by loaning them enough to stay afloat and providing incentives to spur new car purchases. In effect, the government nationalized the two auto-makers just as it did AIG, Fannie Mae, and Freddie Mac. [...]

http://useconomy.about.com/od/criticalss...ailout.htm

"The secret to happiness is freedom... And the secret to freedom is courage."
Thucydides

“My country, right or wrong; if right, to be kept right; and if wrong, to be set right.” Carl Schurz

"Both oligarch and tyrant mistrust the people, and therefore deprive them of their arms."
Aristotle

"Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must." Thucydides
2015 Mar 15 02:32
Like PostLIKE REPLY
The following 1 user Likes Aptrgangr's post:
Blackthorne (16-03-2015)
Blackthorne
Offline
Member



England

Posts: 2.543
Joined: May 2012
Reputation: 342
Post: #2
RE: Why the Big 3 Needed a Bailout and What It Cost the U.S. Taxpayer
The U.S. taxpayer: the most oppressed and underappreciated slave of modern times. The government funds its stupid schemes off of the sweat of our brow.

You goddamn communist heathen, you had best sound off that you love the Virgin Mary... or I'm gonna stomp your guts out!
2015 Mar 16 05:53
Like PostLIKE REPLY
The following 1 user Likes Blackthorne's post:
Aptrgangr (16-03-2015)


Forum Jump:


User(s) browsing this thread: 1 Guest(s)