GM, The Gift That Keeps On… …Taking

22 Oct

What do you think when you hear these words:

“Environmental Trust to Help Fund General Motors Cleanup in Missouri”

The 10/20/10 report from the AP in the Columbia Missourian caught my eye.  The reports starts w/ the statement that:

“Missouri is one of 14 states that will benefit from a new environmental trust to clean up dozens of former General Motors sites across the U.S.”

Benefit? Uh oh. Sounds good… …if you don’t know anything. However, like the commercial says, “But wait…”

“Vacant properties, facilities and offices left barren by GM’s bankruptcy will be razed or rehabilitated under the plan. The funds will come from more than $1 billion provided by the Treasury Department to wind down the “bad” assets of General Motors set aside in the bankruptcy.”

“The plan includes $431 million for states to clean up former GM properties and $262 million for administrative costs.”

Replace the words “Treasury Department” with “Middle Class Taxpayer” and you have the real story.

GM already took $50 Billion from the “Middle Class Taxpayer” that we will never get back.  GM may move $50 Billion from its accounts back to the government, but we “Middle Class Taxpayer” still pay the $50 Billion to GM when (if) we buy the cars… …or when the Government makes purchases from them.

Where did the money go?  Union pension funds?  Buying Congress?  Not the bondholders and secured debt-holders.  No.

Another Billion dollars that GM is taking from you and me instead of their profits, the bloated union pensions, or upper level (CEO) or general labor (union) salaries.  You and me.

$262 Million for administrative costs.  1/4+ of the cleanup money goes to bureaucrats.  And they wonder why the American electorate is outraged?!?!

GM, the gift that keeps on… …taking.

A title of “Taxpayers Again On The Hook To Pay for GM CEOs, GM Union Pensions and GM Crony Capitalism” would be more apropos.

But, we shouldn’t expect that from the AP.

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Posted by on October 22, 2010 in Free Market


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