Obama administration misleading taxpayers?

Discussion in 'Current Events' started by Lue C Fur, Apr 22, 2010.

  1. Lue C Fur

    Lue C Fur Evil member

    http://www.foxnews.com/politics/201...gm-administration-loans-repaid-bailout-money/

    A top Senate Republican on Thursday accused the Obama administration of misleading taxpayers about General Motors' loan repayment, saying the struggling auto giant was only able to repay its bailout money by dipping into a separate pot of bailout money.
    Sen. Chuck Grassley's charge was backed up by the inspector general for the bailout -- also known as the Trouble Asset Relief Program, or TARP. Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.
    "It appears to be nothing more than an elaborate TARP money shuffle," Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner.
    GM announced Wednesday that it had paid back the $8.1 billion in loans it received from the U.S. and Canadian governments. Of that, $6.7 billion went to the U.S. treasury.
    But Grassley said in his letter that a [COLOR=blue !important][COLOR=blue !important]Securities [COLOR=blue !important]and [/COLOR][COLOR=blue !important]Exchange [/COLOR][COLOR=blue !important]Commission[/COLOR][/COLOR][/COLOR] form filed by GM showed that $6.7 billion of the tens of billions the company received was sitting in an escrow account and available to be used for repayment. He called on Geithner to provide more information about why the company was allowed to use bailout money to repay bailout money, and how much of the remaining escrow money GM would be allowed to keep.


    "The bottom line seems to be that the TARP loans were 'repaid' with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials," he wrote.
    Vice President Biden on Wednesday called the GM repayment a "huge accomplishment."
    But Barofsky told Fox News that while it's "somewhat good news," there's a big catch.
    "I think the one thing that a lot of people overlook with this is where they got the money to pay back the [COLOR=blue !important][COLOR=blue !important]loan[/COLOR][/COLOR]. And it isn't from earnings. ... It's actually from another pool of TARP money that they've already received," he said Wednesday. "I don't think we should exaggerate it too much. Remember that the source of this money is just other TARP money."
    Barofsky told the Senate Finance Committee the same thing Tuesday, and said the main way for the federal government to earn money out of GM would be through "a liquidation of its ownership interest."
    Grassley criticized this scenario in his letter.
    "The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government's ability to sell [COLOR=blue !important][COLOR=blue !important]GM [COLOR=blue !important]stock[/COLOR][/COLOR][/COLOR] in the future. Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM. A debt-for-equity swap is not a repayment," he wrote.
     
  2. unionman

    unionman New Member

    You guys complain when the current administration has to bail out companies to large to fail to save the economy. Then you complain when it works and they start paying it back. Its funny to watch the GOP realize that there just say no campaign is falling apart and they better get on board this wallstreet reform or they will be the ones getting booted in November.
     
  3. Lue C Fur

    Lue C Fur Evil member

    ummmmm...the issue is that our govt is misleading people and not telling them where the money came from...NOT complaining that they are paying it back. Did you see where the money came from? Take the blinders off and look around.
     
  4. moreluck

    moreluck golden ticket member

    It's not working if GM is paying back money from a new credit line. It's not like they are paying it back with money from superb profits. You take out a loan on your Visa to pay your Kohl's account.....you aren't recovered!!
     
  5. Lue C Fur

    Lue C Fur Evil member


    My grandmother used to call that "robbing Peter to pay Paul".
     
  6. unionman

    unionman New Member

    Misleading? If that isn't that pot calling the kettle black. How about Weapons of mass destruction? I think if GM is giving money back, who cares if it is borrowed or profits?
     
  7. Lue C Fur

    Lue C Fur Evil member

    So its OK to borrow tax payer money and pay it back with tax payer money? I just want to make sure i know your position on that.

    As for the "weapons of mass destruction" Iraq conspericy theory...if you want to beleive that then good for you...but that would be a whole other thread which im sure has been played out over and over.
     
  8. unionman

    unionman New Member

    Bottom line is that they are reducing the amount of money they owe the Government no?
     
  9. Lue C Fur

    Lue C Fur Evil member

    Nope...this is the bottom line: "The bottom line seems to be that the TARP loans were 'repaid' with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials."

     
  10. Blizzard

    Blizzard New Member

    bottom line is they are paying off one loan with another loan.
     
  11. unionman

    unionman New Member

    If GM was not making money they would not be giving back money. How hard is that to understand. Geez, Republicans make a big deal out of this petty crap when there are real problems that need to be solved. Hope that idiot gets voted out of office but he won't because he is in the south where lies run deep.
     
  12. Lue C Fur

    Lue C Fur Evil member

    So i want to make sure i understand you correctly...if you owe 10 grand on your car and you pay if off with your credit card and then tell everyone you paid your car off and now your debt free, then you would not be misleading them?
     
  13. unionman

    unionman New Member

    They owe about 50 billion. They payed down that debt by 8 billion, end of story.
     
  14. moreluck

    moreluck golden ticket member

    [​IMG]
     
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  15. brownmonster

    brownmonster Man of Great Wisdom

    It's amazing how perfect the country was before Obama. Some of you people need to shut the hell up and disappear.
     
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  16. ImWaitingForTheDay

    ImWaitingForTheDay Annoy a conservative....Think for yourself

    Don't you remember the Obama Recession? You know that in Teabag land, there is no such thing as history, and especially history that starts before Jan 20, 2009. Obama's recession, Obama's invasion of Iraq, Obama's status of forces agreement that forced us to leave Iraq, Obama's deficit, Obama's debt. Nothing bad ever happens under a Republican administration, Bush kept us safe and no American died during his presidency, it's all the fault the current President.....
     
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  17. oldngray

    oldngray nowhere special

  18. ch317273

    ch317273 When your bank says no, champion says YES

    image.jpg
    i must say i think the opposite (of course lol), i remember when bush was in office and public opinion of him was in the crapper, but after a few loooong years under a democrat, suddenly george w. doesnt seem soo bad after all....im sure old george is grateful in a way for 'O-Bummer'.....turns out history didnt need very long to redeem bush, only the last 7 years of the obama presidency, even i am shocked at this amazingly short timeline......its always bewildering to me how any legitimate, at least semi intelligent working man or woman can even remotely care for obama when the only people that benefit from him are the really wealthy or the dirt poor, anyone with a full time job should realize the bottom half of your pay stub, all those deductions, double taxation of certain retirement accounts, ect, are all for the democrats big government, government assistance programs, its more lucrative to live off the system than it is to actually go to work....well, at least there one person worse possibly than obama or hillary as president, his picture is seen above this post
     
  19. DriveInDriveOut

    DriveInDriveOut The One Who Knocks

    I agree, it's a shame "all those deductions" on the bottom half of my paystub for the next 30 years will be spent on social security and medicare so the baby boomers won't have to work for the last 20-30 years of their lives.
     
  20. ch317273

    ch317273 When your bank says no, champion says YES

    Lol wow that response took longer than I thought....oHhhhh how great it would be if social security and Medicare weren't in jeopardy of imploding due to government misallocation, and as I do agree these deductions are legitimately important, everyone, baby boomers mostly better hope the government gets its act together and stops frivolous spending on the dozens of other programs and projects for which no one watches the cash register which can and unfortunately very well might completely decommission social security as we know it.... What then? Tommy and Tina Retard who have 10 kids aNd are on section 8, disability, food stamps, sSi, never worked on the books any longer then they needed to tocollect disability, while both work off the books for cash and drive a Mercedes, are more comfortable living than most people who work a65 hour week, now multiply tommy and Tina by a few million and that's why most people nowadays can't retire, all these taxes and cost of living skyrocketing while the dirt poor are just chill-axin'.....