Business

Massive: Auto Bailout Loss Revised Upwards to $25B

The Treasury Department expects to lose about $25 of the $85 billion used to bailout the auto industry, which is 15 percent higher than previously estimated, The Detroit News reports.

“In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update,” according to the Detroit News article.

“The report may still underestimate the losses. The report covers predicted losses through May 31, when GM’s stock price was $22.20 a share,” it adds.

Indeed, considering that on Monday GM’s stock fell 0.3 percent to $20.47, the losses may be greater than the latest report estimates:

Massive: Treasury Revises Auto Bailout Loss Upwards to $25B

“At that price, the government would lose another $850 million on its GM bailout,” the report adds.

Considering that the feds still hold 500 million shares of GM stock, they’d have to find a way to offload them for about $53 apiece to recover the $49.5 billion spent in bailing out the troubled automaker. But if the stock continues to stay where it is, this means that the feds will end up posting a loss of more than $16 billion on bailing out GM.

Of course, when we talk about the feds posting a loss, whose loss is it really (hint: taxpayers)?

“The steep decline in GM‘s stock price has indefinitely delayed the Treasury’s sale of its remaining 26 percent stake in GM. No sale will take place before the November election,” The Detroit News adds.

But hey! Don’t worry, Treasury spokesman Matt Anderson reminds us that the costs are actually way lower than previously estimated.

“The auto industry rescue helped save more than one million jobs throughout our nation’s industrial heartland and is expected to cost far less than many had feared during the height of the crisis,” Anderson said.

Some of you may remember that the Obama administration had originally predicted a loss of $40 billion on the bailout but later changed that figure to $30 billion in 2009.

Still, the feds’ most recent estimates aren’t as “rosy” as last year’s.

“The Treasury Department said in a May 2011 report that its estimate of auto bailout losses was $13.9 billion. The Congressional Budget Office also estimates a $14 billion loss. The CBO has written off $8 billion of the government’s auto bailout as an unrecoverable loss,” the Detroit report adds.

Meanwhile, GM CEO Dan Akerson assured employees last Thursday that the company would find a way to raise its price.

Final Thought: If this is how these sorts of things will turn out (i.e. billion dollar losses), than we really, really hope President Obama was fooling around when he suggested last week that we “rescue” “every industry”:

Follow Becket Adams (@BecketAdams) on Twitter

Front page photo source: The Associated Press

Comments (96)

1 2
  • TRILO
    Posted on August 13, 2012 at 9:42pm

    Stop your whinning people. On one hand you complain and talk about out of control spending then on the other hand support candidates that voted for TARP, the auto bailout, stimulus spending, omnibus spending bills, continuing budget resolutions, etc, etc, etc.

    Can anyone be consistent these days? Or is it just ok if it is “your guy” doing the voting and spending? This is why nothing in this country will change.

    Report Post » TRILO  
    • db321
      Posted on August 13, 2012 at 9:49pm

      Trilo – get a Life. you are not going to convince anyone to vote for Ron Paul. Not every American is addicted to Pot. Your drams of Legalized Pot is Over/Finished/Done. Ron Paul is out. Ron Paul will end up indorsing Romney / Ryan soon.

      So quit coping and pasting from Ron Paul Propaganda Website – it crap and everyone knows it. So blow out your Ron Paul Candle, tear down the altar and come and join the Romney/Ryan team and lets take back America.

      Report Post » db321  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 10:04pm

      @DB,

      We‘ll quit posting this stuff as soon as the RINO’s and Neocons abandon their feigned support of the constitution. You can’t have it both ways. You can’t say I want the constitution upheld and my second amendment rights are off the table…but the 4th amendment? Meh, go ahead. It’s hypocrisy writ large. Lashing out at constitutionalists isn’t doing you any favors. Y‘all did this with McCain and where’d it get you? How did the whole GWB thing work out for ya? At some point y’all are going to have to reconcile what you say with what you do.

      Report Post » Rothbardian_in_the_Cleve  
    • ShyLow
      Posted on August 14, 2012 at 12:28am

      This is crony capitalist worst nightmare. It goes in the snow unlike a street-bike http://www.youtube.com/watch?v=IZkTB86vI4s&feature=related Free-Market Transportation now!!!

      Report Post » ShyLow  
    • termyt
      Posted on August 14, 2012 at 9:41am

      So because Ron Paul doesn’t get the nomination, we should support no one? That sounds like a winner.

      Compromise is not hypocrisy. Refusing to support anyone who steps out of line with your way of thinking in any regard is refusing to support liberty.

      So go ahead. Bury your head in the sand, refuse to come out and vote for Romney and get us four more years of Obama. That’ll show us.

      Report Post »  
    • johnjamison
      Posted on August 14, 2012 at 10:28am

      An Obama touts this as a success…25 plus billion lost in tax dollars and this what he calls a success….WTH is this idiot not been arrested for theft of tax dollars and corruptions.

      Report Post »  
    • JRook
      Posted on August 14, 2012 at 11:06am

      The report covers predicted losses through May 31, when GM’s stock price was $22.20 a share,” I continue to be amazed at the level of BS that gets passed here being informative and insightful. The value of the stock at any given time can change and so gains or losses are on paper. There is no government gain or loss until the stock is sold. Now it is clear that one political party may well want to sell the stock at a loss to gain some political edge. But then again perhaps there are a few individuals left in Washington who actually care about the well being of the country and its citizens.

      Report Post »  
  • thibx
    Posted on August 13, 2012 at 9:12pm

    corrupt politians and unions destroy. that is all oboma is corrupt and lawless and if he gets back in our country has gone down the drain. we wont recognize it. i truly worry about my grandkids not just finanical but morals being spouted by these nuts and Godless preachers bringing the muslim religion into the churches.

    Report Post »  
  • cassandra
    Posted on August 13, 2012 at 9:07pm

    to unions workers how does if feel to steal billions from Americans and your grandchildren you should be ashamed of yourself and to follow a socialist like Trumka is just disgusting, are you going to be led like a bunch of mindless sheep ? think for yourself for once , do you want someone who is destroying the country ? (obama ) or someone who believes in AMERICA like Mitt Romney/Paul Ryan

    Report Post »  
    • SCREW-WINDOWS
      Posted on August 14, 2012 at 4:38am

      If GM workers were smart they would start packing away cash or start taking Manderin classes cause the end is coming because unions always eat their own and I hear they are getting hungry.

      Report Post » SCREW-WINDOWS  
    • DMANFLA
      Posted on August 14, 2012 at 7:15am

      Very true Windows. This is a fine example of the government knowingly wasting money “…not as bad a loss…”, and still lying about it “… GM is #1…(Obama). Call it what you want but we have not had a free market for YEARS. I believe that the government simply needs to get out of the way and let me live my life as I wish I know of no-one who intentionally screws others over as business policy and now see that this seems to be the premise (sp?) for all government regulations and intrusion into private business and lives. As usual, I see too many complaning back and forth and not addressin the basic issue and problem of government intrusion into the private lives of the people.

      Report Post »  
  • dublinthewagons
    Posted on August 13, 2012 at 8:56pm

    Obama brags about saving the auto industry. Take the losses out of his check and retirement.
    I wouldn’t turn him loose with my cash register.

    Report Post »  
    • HKS
      Posted on August 13, 2012 at 9:08pm

      I guess it cost a lot now days to buy unions. Good thing Obama has friends with deep pockets.

      Report Post » HKS  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 9:10pm

      C’mon now, if you’re gonna start billing you need to make sure Paul Ryan pays his share too.

      Report Post » Rothbardian_in_the_Cleve  
    • CatB
      Posted on August 13, 2012 at 9:54pm

      They need to add in the LOSSES of the SECURED INVESTORS … they lost BIG along with the taxpayers .. getting scr*wed twice!

      Report Post »  
  • SolitudeBliss
    Posted on August 13, 2012 at 8:54pm

    Just wait until the truth about the POST OFFICE comes out . YIKES !!!!!!!!!!!!!!!!!!!!!!

    Report Post »  
    • HKS
      Posted on August 13, 2012 at 9:05pm

      That one will be bured deep.

      Report Post » HKS  
  • RLTW
    Posted on August 13, 2012 at 8:51pm

    And here I thought forcing every law enforcement agency in the country to buy new GM cars would offset the lie. What I find interesting is the number of these vehicles being outfitted with Kevlar lining, even in low crime suburban areas.

    Report Post »  
  • JACKTHETOAD
    Posted on August 13, 2012 at 8:51pm

    Return of the Son of my surprised ass. @

    Report Post » JACKTHETOAD  
  • ricckky
    Posted on August 13, 2012 at 8:42pm

    Media, dems, newspapers—–LIES, LIES, LIES, LIES, LIES, LIES,LIES,LIES,LIES AND MORE LIES–PROPAGANDA, COMMIE TALKING POINTS AND LIES AND THE LIAR-N-CHIEF PROMOTES THESE LIES, LIES LIES!!!!!!!!!!!–PATHETIC!!!!!!

    Report Post »  
  • Tri-ox
    Posted on August 13, 2012 at 8:41pm

    This is why we need legislation forcing all Americans to buy a Chevy Voltobamamobile.

    Report Post » Tri-ox  
  • Bohump
    Posted on August 13, 2012 at 8:34pm

    He will just make a LAW…..That ever body will have to buy one …. . just as he is doing with health care…. And if you don’t like it a Union Thug will be by to see you !

    Report Post »  
  • GoodStuff
    Posted on August 13, 2012 at 8:33pm

    But…but…the auto bailout was a great success! That’s what the media told me over and over again.

    Report Post »  
    • Ramrod64
      Posted on August 13, 2012 at 8:54pm

      A great success for the unions ,maybe gm can use the money to build more plants in china,that way less union jobs here ,buy a gm car not in your wildess dreams……

      Report Post »  
    • SCREW-WINDOWS
      Posted on August 14, 2012 at 4:45am

      I hear that in the rubber rooms they are now teaching Manderin.

      Report Post » SCREW-WINDOWS  
  • progressiveslayer
    Posted on August 13, 2012 at 8:27pm

    Crony capitalism at it’s finest,destroying one company at a time and the UAW got theirs like they always do,greedy communist pigs the lot of them and these union pigs make me want to vomit on their faces.

    Report Post » progressiveslayer  
    • SCREW-WINDOWS
      Posted on August 14, 2012 at 4:48am

      We will have the last laugh cause unions eat their own. Ever watch a snake eat a rat fascinating.

      Report Post » SCREW-WINDOWS  
  • deltaecho
    Posted on August 13, 2012 at 8:25pm

    Cleve – your and you’re are different words. Discover something new.

    I live near Flint and all the union pus-ies are claiming that p-bo “saved” GM. All p-bo saved was their temporary jobs (see cleve, their, they’re and there are different, too.)

    Report Post »  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 8:33pm

      Sorry about Rey typos. I’m on iPhone now and between my fat fingers and autocorrect this is what you are going to get. I‘ll be god isn’t capitalized either…yep.

      Report Post » Rothbardian_in_the_Cleve  
    • SCREW-WINDOWS
      Posted on August 14, 2012 at 4:53am

      Typical Lib always making excuses !!!

      Report Post » SCREW-WINDOWS  
  • Bernice Durdan-Rowland
    Posted on August 13, 2012 at 8:24pm

    And to think there will still be some “stupid dummies” that will vote for him in November’s election !!
    Once a Democrat, always a Democrat – - – well for those people the Dems now are NOT the same as the Dems years ago – - and you who vote for him will find out – you may even end up in one of the 3,000 plus Fema camps here in America !! Remember one thing, Obama and his wife are truly “ANTI-AMERICA” !!!!!!!

    Report Post »  
  • progressiveslayer
    Posted on August 13, 2012 at 8:20pm

    RP voted against it and pretty much every spending bill and expansion of the federal government but nobody’s listening. Well in a few years you‘ll have to listen but it’ll be too late by then and that hopey changey thing the Marxist POS promised really will come true,you will see change you can believe in when the dollar loses reserve currency status.

    Report Post » progressiveslayer  
    • SCREW-WINDOWS
      Posted on August 14, 2012 at 4:57am

      Ron Paul put’s earmarks and bills forward and then vote‘s No on them if that ain’t a act of masturbation I don’t know what is.

      Report Post » SCREW-WINDOWS  
  • MODEL82A1
    Posted on August 13, 2012 at 8:15pm

    I can’t wait for the day that the AUW goes on Strike against…….. Itself. It’ll be “Collective Bargaining” at its finest.

    Report Post » MODEL82A1  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 8:21pm

      The UAW didn’t vote to fund that. But the GOP veep did.

      R&R 2012

      Report Post » Rothbardian_in_the_Cleve  
    • Walkabout
      Posted on August 13, 2012 at 8:49pm

      The bailout let’s the floats the company. It does not make it profitable. It is not. there is a lot of channel stuffing by GM. The lack of profitability is not all GM’s fault. A good share of that is due to Obama’s class warfare rhetoric. With Obama we could end up looking like Argentina, which by the way was on par with Canada until the socialists got hold if it, Now 70m years later they are still knee deep.

      Vote for Obama. You’ll get more recession. America will lose its’ reserve currency status. Things will cost way more & you will rue the day.

      Report Post »  
    • MODEL82A1
      Posted on August 13, 2012 at 8:51pm

      ROTHBART, your Dungeons and Dragons group is ready to start playing. Try to shift gears from one Fantasy to another. They are counting on you.

      Report Post » MODEL82A1  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 9:16pm

      Aw what’s the matter 82? Truth coming back to bite a little?

      You keep dodging the questions, that’s ok. I guess I shoulda figured you’d be one of the first hypocrites to bemoan the bailout while worshiping Ryan. You sure didn’t disappoint. Guess hurling insults is easier than talking issues eh?

      Let me guess, next you’ll start with mama jokes right?

      Report Post » Rothbardian_in_the_Cleve  
    • MODEL82A1
      Posted on August 13, 2012 at 9:20pm

      ROTHBAR the D&D Nerd, You haven’t asked any questions for me to “dodge”. But, hey, that’s life in Fantasy Land I imagine.

      Report Post » MODEL82A1  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 10:02pm

      Ok 82, I’ll look past the namecalling and try to get to the point. This has bled over multiple articles so I’ll rehash.

      Correct me if I’m wrong on any of this OK? You claim to be a conservative and a faithful supporter of the constitution. Now, given that stance you support…let’s just call it a ticket, that has supported or voted for the following:

      -Voted YES on TARP
      -Voted YES on Economic Stimulus HR 5140
      -Voted YES on $15B bailout for GM and Chrysler
      -Voted YES on $192B additional anti-recession stimulus spending
      -Voted YES on limited prescription drug (part D) for Medicare recipients.
      -Voted YES on extending unemployment benefits from 39 weeks to 59 weeks
      -Voted YES on Head Start Act
      -Voted YES on No Child Left Behind Act
      -Voted YES on making the PATRIOT Act permanent
      -Voted YES on allowing electronic surveillance without a warrant.
      -Voted YES on NDAA (extrajudicial killing of Americans)
      -Created the blueprint for Obamacare through the government takeover of MA healthcare
      -Supported Gun Control
      -Enacted Gay Mariage in MA

      Now last I checked these things were not on the conservative agenda. So my question is two-fold?

      Why would you support candidates that do not hold up to conservative principles (and vehemently I might add)? And two, why do you so maliciously attack people who defend the constitution when (implicitly) you are a constitution supporter yourself?

      There, I’ve restated the question(s). What say you?

      Report Post » Rothbardian_in_the_Cleve  
    • woodyee
      Posted on August 13, 2012 at 10:13pm

      Rothbardian, try to pronounce the following with a Jamaican womans accent –

      “IT DOESN’T MATTER!

      You have one of THREE choices to make come November – pay attention – I’m not going to repeat this – 1. Romney 2. Obammy 3. Any third party (equivalent to a vote FOR Obammy)

      FIN.

      Report Post » woodyee  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 10:47pm

      @Woodye,

      You may be right. But what is sad is that either Romney will win or Obama will. In either case, they will still be losing rights by the day and the constitution will be a memory. They have sold out who they are in order to beat the one the loathe the most. They jeer McCain but lined up in force to vote for him 4 years ago. They jeer Boehner but adore Ryan. They bemoan Obamacare but cheer the giver of Romneycare.

      At this point, it just may not matter.

      Report Post » Rothbardian_in_the_Cleve  
  • blackyb
    Posted on August 13, 2012 at 8:15pm

    Just another excuse to use taxpayers money and help destroy this country. These people belong in jail.

    Report Post » blackyb  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 8:23pm

      “these people”? Who? The ones that accepted the money or the ones that took it from us to give it to them?

      Report Post » Rothbardian_in_the_Cleve  
  • streetrodder
    Posted on August 13, 2012 at 8:12pm

    Obama is not totally useless, he can be used as a bad example.

    Report Post »  
  • Too_Far_Gone
    Posted on August 13, 2012 at 8:11pm

    And I do not believe “all” this money is lost, it’s stolen, mark my words ..

    Report Post » Too_Far_Gone  
    • Anonymous T. Irrelevant
      Posted on August 13, 2012 at 8:41pm

      Stolen and distributed amongst Obama & Co. Some of it, he is using for his re-election, the rest of it is probably in overseas accounts. His family was into banking, mother, grandmother, they knew how to take it, hide it, take bits of it and spread it around. Why do you think all the ID’s were for? Just speculation on my part. But I bet I am not far off.

      Report Post » Anonymous T. Irrelevant  
    • Too_Far_Gone
      Posted on August 13, 2012 at 9:17pm

      Agree ..

      Report Post » Too_Far_Gone  
    • SCREW-WINDOWS
      Posted on August 14, 2012 at 5:08am

      Those Kenyan’s they know how to fill a inbox full of SPAM also. You know you hit the lottery or the prince died and left you his fortune.

      Report Post » SCREW-WINDOWS  
  • Rothbardian_in_the_Cleve
    Posted on August 13, 2012 at 8:10pm

    Great, good thing the GOP veep voted for that one.

    C‘mon RINO’s fly the hypocrisy flag! Let’s see those crocodile tears.

    Report Post » Rothbardian_in_the_Cleve  
    • RIGHTHOOK
      Posted on August 13, 2012 at 8:22pm

      Ryan was among 32 House Republicans to support an initial $25 billion bailout of the car companies and parts suppliers. Obama authorized tens of billions more in 2009.

      Typical, you leave the important parts of the story out to suit your agenda. Nice try.

      Report Post » RIGHTHOOK  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 8:31pm

      Important parts?

      So you’re saying this has nothing to do about principe right? The important part is price. So you and mr Ryan support taking money at gunpoint from unborn children to give to the UAW so long as it is 25 billion or less. 26 billion or more makes you a Marxist traitor. Got it.

      Report Post » Rothbardian_in_the_Cleve  
    • Walkabout
      Posted on August 13, 2012 at 8:34pm

      You get elected by people. Some portion of that electorate is rabble. It has been shown that your average person will scream for for people trapped on the top floors of a burning building to jump. Any community that has large towns probably has a contingent of big labor.

      Sometimes you have to tack instead of going straight. Convoys do it all the time.

      Consider Iowa it is a purple state. Why, all the towns have manufacturing. You will find the unions there too. It used to be a red state.

      The only way not to have the hypocrisy charge not thrown at you is to say something like “You all can go to HeII, I am going to Texas.

      So where is Paul Ryan suppose to move to? Australia? Canada? Singapore? England?

      Report Post »  
    • progressiveslayer
      Posted on August 13, 2012 at 8:34pm

      RIGHTHOOK So just because the number was lower when Ryan voted for it absolves him some how?
      It doesn‘t seem like a small government guy would vote for a bailout of any kind that’s what bankruptcy courts are for and taxpayers shouldn’t be bailing out any company for any reason.

      I say let the free market determine the success or failure of a company and the government shouldn’t be involved at all.

      Report Post » progressiveslayer  
    • RIGHTHOOK
      Posted on August 13, 2012 at 8:46pm

      Progressiveslayer – I am not in the business of absolving the guy or anyone else for the matter. No idea exactly what compelled him to go along with the vote. I would think he had compassion for the workers and communities affected having lived in Janesville where the GM plant was shuttered.
      Is there a “perfect” human being or two out there with a flawless, unstained record of operating that should be in this race to defeat the commie club currently entrenched?

      Report Post » RIGHTHOOK  
    • MODEL82A1
      Posted on August 13, 2012 at 8:47pm

      ROTHBAR No tears of any kind here, pal. Our moods have been refreshed by the actual, Ron-Paul-Is-A-Proven-Joke-Loser tears that we are constantly showered her by you and your buddy.

      Report Post » MODEL82A1  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 9:20pm

      @82,

      Well I’ll give it to you. 1. You are committed to not talking issues. 2. You don’t care how stupid you sound.

      Report Post » Rothbardian_in_the_Cleve  
    • MODEL82A1
      Posted on August 13, 2012 at 9:26pm

      ROTHBAR the D&D Geek, you dropped out of Community College because all your “professors” were “stupid”, too. Right?
      P.S. I don’t debate imbeciles. It’s pointless. I do mock and humiliate them, though. Thanks for playing.

      Report Post » MODEL82A1  
    • Rothbardian_in_the_Cleve
      Posted on August 13, 2012 at 9:55pm

      LOL, you feel better 82? You got me. Nailed it…all of it. Junior college was just too hard for me. I wish I had known that namecalling was the best way to win in debates. Dang. Thanks for showing me the way though.

      Report Post » Rothbardian_in_the_Cleve  
    • SCREW-WINDOWS
      Posted on August 14, 2012 at 5:11am

      Rothbardian_in_the_Cleve
      Really dude you gotta sign in under different alias’s to make it interesting.

      Report Post » SCREW-WINDOWS  
  • RIGHTHOOK
    Posted on August 13, 2012 at 8:08pm

    Wait a minute, this was a “stimulus” that helped propel our country forward and save/create jobs……

    Report Post » RIGHTHOOK  
  • 70S_KIDS_FIGHTING_SOCIALISM
    Posted on August 13, 2012 at 8:08pm

    America will be better off when GM goes belly up and we can put an end to Government Motors and their union thugs. This is how we will win this COLD WAR. Just the way my generation won the other one. Let the liberals spend their self bankrupt including the big cities. I believe in freedom of stupid people being able to bankrupt themselves and letting those liberal cities no longer exist. The public union contracts will be null and void. then. Let NY city, Chicago, San Fran go bankrupt and no longer existing. Then maybe later someone else can start a new city based on freedom and the Constitution without communist unions and segregation.
    TEA PARTY UNTOUCHABLES!!!!!!!!!!!

    Report Post » 70S_KIDS_FIGHTING_SOCIALISM  
  • Baja
    Posted on August 13, 2012 at 8:06pm

    Everything this piss poor excuse for a President touches turns to sh*t.
    Time to throw the seditious, treasonous bastards behind bars.

    Report Post » Baja  
  • Too_Far_Gone
    Posted on August 13, 2012 at 8:06pm

    Well, Exploding Cars Doesn’t Help ..

    Although They Are Colorful ..

    Way To Go b.o.

    Report Post » Too_Far_Gone  
  • Darmok and Jalad at Tanagra
    Posted on August 13, 2012 at 8:04pm

    What about GM’s dignity, what was that worth? Come on, Ford never lived down the Edsel or the Pinto, now Chevy has the Volt hung around it’s neck. and Chryler was forced to merge and support the Fiat 500. Oh the shame, soon, Knights will be saying NEE to little old ladies.

    Report Post » Darmok and Jalad at Tanagra  
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