Quote:
Originally Posted by Merv and Sharon
Just look at the US bailout of GM.
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Merv, what the US feds did was not subsidize GM but bought a large holding of GM shares. That's a whole lot different than just handingover a fist full of money.
The US feds, bought the shares, then assisted in re-organizing GM which also included putting a cap on GM executive salaries.
Now, GM are on the come back and the US Feds are selling out their stake in the company. See here:
Government sells big hunk of GM stock
Whether the US Feds get all the money back is speculation but at the very least they will get a large part of it back and will not suffer the consequences of a full loss as will the Oz. Government with Ford.
Also note that other the other GM shareholders whose holdings were worth nothing at the time of GM claiming a the Chapter 11 have now not lost their total investment.
And this is the procedure I subscribe. Certainly assist the Industry, but do so by protecting the interests of the taxpayer as much as possible.