Out of the $80 billion the U.S. Treasury footed for the rescue and restructuring of General Motors, Chrysler and automotive suppliers, reports are now estimating that the Feds will see around $64 billion of that back, losing “only” $14 billion in the process.
Hey, it could have been worse. But the bottom line will ultimately rest on just how much money Uncle Sam will make off of The General’s stock, whenever it happens to be sold.
Source: The Detroit News
Comment
The death of the US auto industry probably would have increased the debt by 100’s of billions of dollars due to decreased corporate and income tax revenue. In comparison, $14 billion represents a rounding error. I think the government was totally justified in its actions on the auto industry.