How Obama’s Bailout of GM Subsidized China
The company knew what to do with this money. It created jobs in China, where it has 2,700 dealerships. It also had its Cadillac division sponsor a movie produced by the Communist Party of China that praises the history of the founding of the Party.
This is called “branding.” Message: “The Chinese Communist Party is the Cadillac of Communist parties.”
The head of GM bragged in a speech in China that 70% of GM’s cars are made outside the USA.
You say you never heard about this. I wonder why not. Keep reading. It gets worse.
GM in 2010 said that it had repaid the 2009 loans. It did, too, and then borrowed money back at 5%. It had been paying 7%, which was a subsidy at that low rate to a busted company. Such a deal!
Over half of the bailout money went to buy GM shares, not make loans. That $26 billion in shares will be repaid (bought back by GM), we are assured, when GM’s shares hit $50. GM’s shares are under $25 today.
You say you didn’t know all this. You say it smells like crony capitalism to you. Me, too. But our sense of smell doesn’t count.
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