From the try this at your business and see how it works out. GM has been running ads and op-eds proclaiming the repayment of the Government Bailout money. This is truthful in the most technical sense of the word payback. Just not quite the payback Mr. Whitacre expounded on in his op-ed and ad campaign. From Forbes article…
…the Obama administration put $13.4 billion of the aid money as “working capital” in an escrow account when the company was in bankruptcy. The company is using this escrow money–government money–to pay back the government loan.
The government still owns some 60% of General Motors stock as does Canada (11.7% equity position). How can these people be so brazen as to claim they have paid the money back, plus interest. So, what really happened was a payback of taxpayer dollars loaned at 7% with taxpayers money from an escrow account. So the taxpayers were paid interest with their own money. So now, they owe the escrow fund the money. Only the interest is 5% instead of 7%. Would any of you approved this deal? Sounds like Social Security accounting…