GM, which has recently been running commercials bragging about how they have paid back the government loan that kept them afloat, is taking a page from the President Obama handbook by distracting with one hand so you don't notice what the other is doing. While it is true that they paid off the loan, they did so without paying off the equity stake which the government bought. So, of nearly $50 million dollars in loans, they really paid off less than $7 million. Keep in mind, the head of GM is the hand-picked man of the administration. This sort of dishonesty is rampant in modern politics (yes, GM is politics as it is run by our government) and it is the sort of thing that must be discarded if we are ever going to move forward.
We need a revival of ethical, moral, and spiritual values.
ReplyDeleteHmm, if it's the rest of the amount is an equity stake, are they required to repay it? Usually, equity means that shareholders may get a share of any profits in the form of dividends, but they generally don't expect to be repaid the invested amount by a certain date with a certain interest.
ReplyDeleteIf it were a normal investor, no, the very nature of the equity infestment would be called a purchase. But that's not what we were told our money was going for.
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