It’s interesting enough that the New York Times has a story on the shell game of
Government General Motors repaying its taxpayer loan with taxpayer money, but even more interesting is the Union Manufacturing Czar Ron Bloom’s [emphasized] reaction at being exposed:
“The public would know nothing about the TARP escrow money being the source of the supposed repayment from simply watching G.M.’s TV commercials or reading Treasury’s press release,” Mr. Grassley said in a speech on the Senate floor last Wednesday, saying that “many billions” of federal dollars remained invested in G.M.
“Much of it will never be repaid,” Mr. Grassley added. “The Congressional Budget Office estimates that taxpayers will lose around $30 billion on G.M.”
And Ron Bloom, senior adviser to Mr. Geithner, bristled at Mr. Grassley’s criticism. “The Treasury Department has tried to be as straight as humanly possible,” he said in an interview. “We have never not been clear about exactly what we paid, exactly the terms of the investment. I’m finding it hard to find anyone obfuscating about this.”
As the Times points out: Taxpayers still own $2.1 billion in preferred stock of G.M. and almost 61 percent of its common equity.
If taxpayers are being repaid with their own money, shouldn’t the taxpayers be the ones bristling, Mr. Bloom?
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776
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