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Bailout costs
Sturmgewehr
Member Posts: 4,420
Without Comment:
(C&P)Govt to lose $14B of auto bailout funds
Wed Jun 1, 12:19 pm ET
WASHINGTON - The Obama administration said Wednesday that the government will lose about $14 billion in taxpayer funds from the bailout of the U.S. auto industry.
In a report from the president's National Economic Council, officials said that figure is down from the 60 percent the Treasury Department originally estimated the government would lose following its $80 billion bailout of Chrysler and General Motors in 2009.
The report's release coincides with the administration's efforts to tout the bailout's role in the revitalization of the U.S. auto industry after last week's announcement that Chrysler is repaying $5.9 billion in U.S. loans and a $1.7 billion loan from the Canadian government. Those payments cover most of the federal bailout money that saved the company after it nearly ran out of cash in and went through a government-led bankruptcy.
GM previously announced that it had repaid a little more than half of the $50 billion it received in federal aid.
Treasury Secretary Timothy Geithner said U.S. auto companies are now at the forefront of a comeback in American manufacturing.
"We cannot guarantee their success, and at some point they may stumble. But we've given them a better shot," Geithner wrote in an opinion piece in Wednesday's edition of The Washington Post.
"While we will not get back all of our investments in the industry, we will recover much more than most predicted, and far sooner," he wrote.
Obama will visit a Chrysler plant in Ohio Friday to tout highlight the company's success.
GM and Chrysler were on the verge of collapse in the final days of the Bush administration after Congress failed to approve an emergency loan package. The Bush administration gave the companies $17.4 billion in loans and required them to develop a restructuring plan by mid-February 2009.
Obama's administration pumped billions more into the carmakers later that spring but won concessions from industry stakeholders, allowing it to push GM and Chrysler through bankruptcy court in the summer of 2009.
The Link:
http://news.yahoo.com/s/ap/20110601/ap_on_re_us/us_obama_autos_2
(C&P)Govt to lose $14B of auto bailout funds
Wed Jun 1, 12:19 pm ET
WASHINGTON - The Obama administration said Wednesday that the government will lose about $14 billion in taxpayer funds from the bailout of the U.S. auto industry.
In a report from the president's National Economic Council, officials said that figure is down from the 60 percent the Treasury Department originally estimated the government would lose following its $80 billion bailout of Chrysler and General Motors in 2009.
The report's release coincides with the administration's efforts to tout the bailout's role in the revitalization of the U.S. auto industry after last week's announcement that Chrysler is repaying $5.9 billion in U.S. loans and a $1.7 billion loan from the Canadian government. Those payments cover most of the federal bailout money that saved the company after it nearly ran out of cash in and went through a government-led bankruptcy.
GM previously announced that it had repaid a little more than half of the $50 billion it received in federal aid.
Treasury Secretary Timothy Geithner said U.S. auto companies are now at the forefront of a comeback in American manufacturing.
"We cannot guarantee their success, and at some point they may stumble. But we've given them a better shot," Geithner wrote in an opinion piece in Wednesday's edition of The Washington Post.
"While we will not get back all of our investments in the industry, we will recover much more than most predicted, and far sooner," he wrote.
Obama will visit a Chrysler plant in Ohio Friday to tout highlight the company's success.
GM and Chrysler were on the verge of collapse in the final days of the Bush administration after Congress failed to approve an emergency loan package. The Bush administration gave the companies $17.4 billion in loans and required them to develop a restructuring plan by mid-February 2009.
Obama's administration pumped billions more into the carmakers later that spring but won concessions from industry stakeholders, allowing it to push GM and Chrysler through bankruptcy court in the summer of 2009.
The Link:
http://news.yahoo.com/s/ap/20110601/ap_on_re_us/us_obama_autos_2
Comments
People have a hard time conceptualizing very large numbers, so let's give this some context. The current Credit Crisis bailout is now the largest outlay In American history.
Crunching the inflation adjusted numbers, we find the bailout has cost more than all of these big budget government expenditures - combined:
Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
TOTAL: $3.92 trillion
If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars
...and they take PayPal.
What do you mean, unless your self employed, It's automaticly deducted from your income...They call it income come taxes
I am worried about who's pocket it will come from.
Yours and mine among others.[:(]
What happens if it fails and there is a real collapse?
We are out the money and still have the debt as a nation.
I think the economy will recover without this lame plan. The more I see it the worse it looks. The Obama team sees it as an opportunity for a NEW World Order, or at least a new Socialized regulated Order. The Senate and Congress sees it as an opportunity to add pork projects.
It is possible, non probable, they are making it sound worse than it is to allow them a fudge factor or to allow other social spending projects to be added.
So this confirms that I can solve this economic problem? overnight without costing the USA a dime!
I raise the tax rate to 90% on the top 1% of taxpayers who currently pay 36.9% of the federal take. This increases the feds cash to 110.7 % Surplus year one! And then the big part! I repeal all federal income tax on all incomes below that since I just raised 10.7% more then I would have had in the first place. Think about it, the first year we get all of our federal money back, 99% of all the taxpayers! OK the 1% er's are really pissed but hey it is your civic duty to correct the economy you depleted. A progressive tax system after all as has been proven throughout our history. Now what happens? Well first year results are astounding of course the middle & lower class 99% spend most all of the money they got back in some cases as much as 28% of their income or more! WOW Even those who normally only pay 13% fed tax get a windfall. This will generate sales of cars, TV's, washers and dryers, books, tires, computers etc. Which will restart the engine, new regulations on corporate accounting prevent over leveraging of past and companies are profitable due to reinvestment of wealth versus distribution to top .1% of employees. (Rules like shareholders determine officer's salary; we technically own the company!)
Years two and three we pay off debt and rebuild infrastructure, eventually we can reduce top rate to maybe 70% and hold building huge surpluses for future generations!