05.25.2011 1

Taxpayers Are Losing on General Motors Bailout

Government Motors

No surprise here, but taxpayers are definitely losing money on the bailout that was engineered by Obama and Bush for General Motors.

As Shikha Dalmia wrote at Reason (bold text done for emphasis):

…Bloomberg’s survey of 21 auto analysts put the average projected price for GM at $42.85 per share a year from now. This means that, outside of miracle, taxpayers will lose anywhere from $13 to $19 billion on their principal and another $45 billion on taxes for a grand total of up to $58 to $64 billion in losses. And that’s just for GM. Chrysler is whole different—and equally sordid—story. Even Treasury Secretary Timothy Geithner acknowledged last month: “We’re going to lose money in the auto industry.”

Free market supporters predicted such things would happen when you bailout a company. But the MSM, Keynesian sympathizers, and politicians quick to appease the public on both the left (like Paul Krugman) and right (like Herman Cain, Rep. Paul Ryan, and Newt Gingrich) reassured the taxpayers that they knew best and that bailouts would work…

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