The Success of Government Motors Corporation

[Joe Story]

 

As part owner of what the President called the highly successful reorganization of GM I was not happy with the description either candidate used in the debates last night. GMC was the first Corporation in American history to be taken over and operated by the Government while its unions were given Tax-Loss carry-forwards in order to repay the so called bailout loans. In effect the loans are being repaid by tax benefits which allow for the avoidance of taxes on all the profits generated by the new company, thus Government Motors Corporation became the first company offered tax deductions for losses that occurred before bankruptcy.

In other words GM did not go bankrupt!  For the first time in US History stock holders and debtors got no say in what happened as the government took over operations. To this day the federal government is still in control and the company will do what the president and his car czar demand. No one wants to see what would happen if the government dumped all of the Government Motors Company stock we as citizens of the country purportedly own into the open market. One day the company will have to stand on its own again. I certainly will not be a participant in anyway. I have lost enough money as an investor and customer who lost everything covered by my contracts with the prior company and its affiliates.

Now President Obama and the federal government are seeking the permanent establishment of the corporate Tax-Loss Carry-Forwards program. This time the beneficiary is Solyndra investors. These investors just happen to be Obamas friends and campaign supporters.

Do you get the picture----the man in charge makes the rules and decides against whom to enforce them or to whom the wealth of our nation should be redistributed.

In loving memory of free enterprise and a fair tax system!

[amanda choate]

Joe, if you lost on your investment in GM as a stockholder, well that is on you. If you lost as a bondholder, well the negotiated settlement provided a return roughly average to what bondholders would expect after years of wrangling, the difference is attorney fees. The warranty on your vehicle was provided in the settlement. The unions put up their pensions as collateral for their portion. Had GM gone bk American taxpayers would have been on the hook to pay those pensions back. We are forever off that hook. It worked for everyone. The amount of loss the tacpayers are exposed to in this deal is less than the pension liability. The jobs were a bonus. Mathmatically it makes sense.