Thursday, April 29, 2010

Too good to be true indeed

Chances are if you watch American TV you have seen the recent ads of General Motors CEO Ed Whitacre bragging that his company has already paid back their federal assistance loans. Thing is that's not entirely true.

You see what Whitcare is not sharing in that ad is that GM paid back one government loan with funds from another government loan. A bit shady ain't it?

Pretty much what happened is GM borrowed money from the government in one loan then paid it off with some of their share of the TARP funds that went around last year. That's right instead of using their own profits and assets to pay off they used more government money to pay off their first government loan. So by chance if you see that ad (its at the link at the top of this post) don't be fooled.


womanistmusings said...

Thanks for the clarification, I have seen the ad a few times and wondered how they managed to be doing so well despite the fact that though the economy is on an upswing it has not advanced that far.

Paul said...

Thanks for this man, I was wondering about that too.

Danny said...

Anytime Renee and Paul. We can't afford to let big business pull the wool over out eyes.