Just to make your day

Alan · Nov 16, 2011

We're losing MORE money in bailouts.

David Shepardson/ Detroit News Washington Bureau
The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.'s steep stock decline.

In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion.

The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in 2009.

The big increase is a reflection of the sharp decline in the value of GM's share price.

The current estimate of losses is based on GM's Sept. 30 closing price of $20.18, down one-third over the previous quarterly price.

GM's stock closed Monday at $22.99, up 2 percent. The government won't reassess the estimate of the costs until Dec. 30.

The government has recovered $23.2 billion of its $49.5 billion GM bailout, and cut its stake in the company from 61 percent to 26.5 percent. But it has been forced to put on hold the sale of its remaining 500 million shares of stock.

The new estimate also hikes the overall cost of the $700 billion Troubled Asset Relief Program costs to taxpayers. TARP is the emergency program approved by Congress in late 2008 at the height of the financial crisis.
In total, the government used $425 billion to bailout banks, insurance companies and automakers, and provided $45 billion in housing program assistance.

The government now expects to lose $57.33 billion, including the full cost of the housing program, up from $36.7 billion. The new estimate means the government doesn't believe it will make an overall profit on its bailouts.
Click to expand...

Tarheelxrd · Nov 16, 2011

This post is hidden to guests.
To view this post, please log in.
If you are not a member, you will need to sign up.

DIXIEDOG · Nov 16, 2011

This post is hidden to guests.
To view this post, please log in.
If you are not a member, you will need to sign up.

Alan · Nov 17, 2011

This post is hidden to guests.
To view this post, please log in.
If you are not a member, you will need to sign up.

Wizard · Nov 17, 2011

This post is hidden to guests.
To view this post, please log in.
If you are not a member, you will need to sign up.

n2ratfishin · Nov 17, 2011

This post is hidden to guests.
To view this post, please log in.
If you are not a member, you will need to sign up.

Log in or Sign up

Just to make your day

Alan Proud Infidel

Tarheelxrd Well-Known Member

DIXIEDOG Prostaff for Taylor worms

Alan Proud Infidel

Wizard Well-Known Member

n2ratfishin Well-Known Member

Share This Page