How Much Did the GM Bailout Cost Taxpayers?

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Sept. 20 (Bloomberg) -- Matt Miller examines the cost of the GM bailout on Bloomberg Television's "In The Loop." (Source: Bloomberg)

A lot of car news.

It looks like president obama is kind of taking a victory lap, which is why we thought it would be a great time to talk about what is going on in the auto industry and how the bailout looks, kind of take stock of what it means for american workers and jobs.

Ford was the one carmaker that needed no direct cash injection from the government to mr.

Wood has benefited from the bailouts of general motors and chrysler, as has the broader u.s. economy.

Treasury department recently sold another chunk of its once majority holding a general motors, bringing total proceeds to $35.5 billion.

50 $1 billion spent to save general motors, the biggest a lot of the whole auto industry.

We still have about a $3.8 billion stake in today's price.

The total amount spent, $11.8 billion.

I was thinking, what has this $11 billion bought us?

For starters, it saved a lot of jobs.

The study for automotive research says the rescue saved 1.14 million jobs in 2009, but that automakers themselves and the companies that depend on the industry, suppliers from a for example.

It also saves a collapse that would have cut $96.5 billion in personal income in 2009 and 2010. so the wages they would have gotten.

It also would have cost the federal government almost $30 billion in extra jobless benefits and reduced social security and income tax hunter be sure that they have not earned any of that money and if they had been out of jobs and needed unemployment.

Those numbers do not tell the whole story.

Somehow it seems like the government bailout seemed to jar general motors into making better cars, which is kind of weird if you think about it.

It hurts my libertarian senses, but the ctsv was a game changing car for the cadillac.

And paula has -- impala won best midsize family car.

Silverado just got accolades for the best truck.

In the new corvette, you cannot really find anything wrong with it unless you want to but more than peta people in the car.

You drive that corvette anywhere and everybody will be staring at you.


The other day ron paul was in the office and i said, hey, what do you think about this -- seems like such a great deal.

For $11 billion, we get 1.14 million jobs.

He in any other credible libertarian will point out there is no way of back testing the alternative scenario.

Creative distraction could have allowed some a credible and innovative new businesses said just a safer and more environmentally friendly tesla.

Maybe many more teslas would've popped up.

And the moral hazard created may have allowed gm and ford to make the same mistakes they had been making in the past and just got a prolonged to their painful eventual and inevitable lapse.

Of course, a lot of us were not very thrilled to pay for this bailout sort of at gunpoint.

Bondholders were steamrolled.

Contract law was straight up ignored.

There were some issues.

You could easily take issue with it.

But take a look at the stock.

It has been up.

Massive gains over the last 12 months.

Something like 52% gains over the last 12 two months.

I was looking at the analysts, 17 out of the 22 whatever it call it a buy.

No sells.

The average price target is for another 16% gain in the next 12 months.

Thank you very much, matt miller him our resident auto expert.

Julianna goldman in washington

This text has been automatically generated. It may not be 100% accurate.


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