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To obstruct any progress

September 12, 2012
The Daily News

EDITOR:

In response to "The pressure is on" Letter to the Editor of Aug. 31, I would like to follow up with an article I have read, from March of 2012. According to John Rosevear's article on Fool.com, I quote: "Under the terms of the loans made to GM under the Troubled Asset Relief Program during the financial crisis - just under $50 billion worth in total - GM was to pay part of the balance back in cash, and part with GM stock.

"That has been done. GM had until 2015 to pay back the cash, but former CEO Ed Whitacre chose to do it early: The last payment, about $4.8 billion, was made two years ago. Meanwhile, the government was given a 60.8 percent equity stake in post-bailout GM. Officially speaking, that action settles the debt."

"Here's the problem: The cash plus the stock hasn't (yet) added up to the $49.5 billion lent. So far, according to GM, about $23.1 billion has been "repaid or returned to the U.S. Treasury":

- $6.7 billion in cash, the last of which was that payment made in April of 2010.

- $13 billion via GM's IPO, when the government sold about 45 percent of its stock holdings.

- $2.1 billion, when GM bought back some preferred stock from the Treasury in late 2010.

- About $800 million in interest and dividends on the loans and preferred stock.

"That still leaves over $25 billion to be "repaid." But the government still holds 500 million shares of GM common stock, a 32 percent stake in the auto giant. At $25 a share, roughly where GM has been trading recently, that's $12.5 billion - a bit less than half of what is needed to square accounts."

Complete article can be found at: www.fool.com/investing/general/2012/03/22/when-will-gm-pay-us-back.aspx.

However, also to be considered is: How many families are now off unemployment compensation, self-supporting, and now spending again, to keep our economy growing?

These are unmeasurable amounts of profit, growth, and well-being for our country, and isn't that actually our objective and that of our government?

Or is it the continuing undermining and hatefulness being spread by some, in their words and actions, like the Republican House members' shirking of their oaths in Congress to obstruct any progress President Obama tried to make all session, including their blocking of his jobs bill, submitted last year?

We can all look at a cup half full, or continue wanting to look at the cup half empty, filling the balance with hope and change, or hate and divisiveness.

At the current time, also according to this article: "GM is booking big profits and creating new jobs, and its latest models like the Chevy Cruze are extremely competitive with rival models from Toyota. The company is posting solid growth in overseas markets even as overall industry sales in places like China are slowing."

This great news should please every "true" American.

Mary L. Grabski

Florence, Wis.

 
 

 

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