Continued fallout from the bailout orgy.
From Big Government.
On a day in which GM announced it was recalling at least 38,000 of its vehicles due to a crash risk, the Treasury Department said in a new report that it now expects to lose $25 billion on the auto bailout, which is $3.3 billion more than was previously forecast.
According to The Detroit News, the report may actually underestimate the losses and comes on the day in which GM’s stock price fell $.07 to $22.20 a share. At this price, the government, which spent $50 billion of taxpayer monies to bailout GM, would lose another $850 million on its “investment” in GM.
The report notes the government still has 500 million shares of GM and needs to sell those shares at $53 a share for the government to break even on the GM bailout. This seems unlikely, and officials said no sale will take place before the November election.
The government holds another 74 percent state in an auto finance company, which is part of another bailout portfolio in which the government invested $17.2 billion. They have only recovered $5.7 to date.
The SCOAMF, who is not fit to lead a Democratic Republic, flushed billions in tax-payer funded bailouts to an auto industry that should have been allowed to go bankrupt, and gave millions in union payoffs, to boot. His bailout/stimulus/TARP disaster added trillions to the national debt and threw us into an economic blackhole. Obama’s “shovel ready” agenda lost over 5 million jobs since he took office. Unemployment went from 7.5 million in January of 2009 to 12.8 million as of now.
Shovel ready, baby.