Post by AgeOfEnlightenmentSCP on Feb 24, 2011 23:47:56 GMT -5
For Government Motors. I'd like my company to be singled out for favorable tax treatment. How is this even Constitutional? For that matter, how is any bailout Constitutional / equal protection under the law?
Short story is this-- any company can take past losses and carry them forward-- except when you declare bankruptcy and walk away from debts-- in the case of GM $30 BILLION DOLLARS!!!
Post by privateinvestor on Feb 25, 2011 8:51:55 GMT -5
Yea but with the price of gasoline beginning to creep up again near $4.00 per gallon, and inflation raising it's ugly head again, GM may not be able to sustain these so called "Good Times" unless their sales for their Chevrolet Volt can bring in the megabillions they are hoping for..?? But that might be a few years away from now IMHO
Here is how we know this. During an April 20 hearing on Capital Hill, Sen. Tom Carper, (D-Del.) asked some pointed questions of Neil Barofsky, the ¡°special watch dog¡± on the Wall Street Bailout, aka, TARP.
It¡¯s good news in that they¡¯re reducing their debt,¡± Barofsky said of the accelerated GM payments, ¡°but they¡¯re doing it by taking other available TARP money.¡±¡
¡°It sounds like it¡¯s kind of like taking money out of one pocket and putting in the other,¡± said Carper, who got a nod of agreement from Barofsky.
¡°The way that payment is going to be made is by drawing down on an equity facility of other TARP money.¡±
Furthermore, Exhibit 99.1 of the Form 8K filed by GM with the SEC on November 16, 2009, seems to confirm that the source of funds for GM¡¯s debt repayments was a multi-billion dollar escrow account at Treasury¡ªnot from earnings. In the 8K filing GM acknowledged:
¡öOf the $42.6 billion in cash and marketable securities available to GM as of September, 30, 2009, $17.4 billion came from an escrow account with Treasury, ¡ö$6.7 billion of the escrow account available to GM was allocable to the repayment of loans to Treasury, ¡ö$5.6 billion in cash would remain in the Treasury escrow account following the repayment by GM of their loans, and ¡öUpon repaying Treasury, any balance of escrow funds would be released to GM.