Posted by: Tony Carson | 16 November, 2009

GM’s ‘solid foundation’ of increasng debt

GM will start repaying it’s $6.7 billion loan from the US taxpayer with a payment of $1.2 billion to US coffers in December, thanks to the carmaker’s ‘solid foundation.’

That ‘solid foundation?’ Announced debt of $1.2 from July 10 to September 30.

There is a lot that is confusing about auto manufacturing and high finance. In the good old days that kind of debt might have been thought of as … well, troubling. But not today. It’s a ‘solid foundation.’

Of course, in the good old days GM shareholders owned GM. Now it is owned 61% by US tax payers.

And to US taxpayers, a lousy $6.7 billion is chump change.

The BBC story is here.

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Responses

  1. Good read, thanks


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