Was the GM Bailout Worth the $10 Billion Loss?

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Sept. 20 (Bloomberg) –- Bloomberg’s Matt Miller discusses the pros and cons of the GM bailout with Julie Hyman on Bloomberg Television’s “Lunch Money.” (Source: Bloomberg)

Internal auto maven, if you will, has been talking about general motors and getting a little bit of a payback to the government.

Right?

Is that what's going on here?

Yes.

We've gotten some insights this year into how much we're going to end up losing.

Remember it was a $51 billion investment.

So far we've gotten about $40 billion out of share fares but the question is what have we gained and what have we maybe lost?

We've saved over 1 million jobs from the bailout which is positive and saved a lot of none unemployment benefits we would have had to pay out, lost wages that wouldn't have come into the economy as far as lost money coming in so it seems like a gain and they have immediate incredible cars, 13 new models in the u.s. and 18 worldwide.

We're seeing really big wins, the kind to which we're not really accustomed to for an american car maker.

They got the best mid-sized family sedan which hasn't had an american car win in years and they have put out some incredible sports cars from cadillac c.t.s.v. to the camaro which is probably the most anticipated car this year and in a number of years.

So from those aspects, it seems like a big win and maybe a lot of people would argue worth the $10 billion we may actually lose on the bailout.

Of course there's the moral hazard issue of was it worth it?

Well c.g.m. ando companies could continue in the same old habits and continue as before and eventually diane inevitable pillow longed, painful death.

The other thing is some other company could have sprung up that sort of created this issue.

Ron paul was telling us had general motors been led to fail, maybe you would see more teslas actually popping up.

And tesla has been so innovate and green maybe we would see more innovate and green companies popping up.

So there's the arguments and it's impossible to back test for an alternative like that.

So i guess we'll never know but we do have tesla.

Thank you so much matt, appreciate it.

We'll be on the markets again in 30 minutes, bloomberg west is up next.

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

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