The Treasury Department has sold off the last of its stock in General Motors, closing the books on the nearly $50 billion in taxpayer money loaned to keep the automaker open. In the end, they got back all but $10 billion, which is one of the best bargains I’ve ever heard of.
The Treasury took a loss of more that $10 billion on the $49.5 billion bailout, but said that saving the US auto industry, the jobs of millions of auto workers and the pensions of many retirees was worth it…
In a new study, the Center for Automotive Research said the government’s loss was paltry compared with the losses risked by letting GM and Chrysler go under.
Not including the potential impact on the parts sector, the study said the US government “saved or avoided the loss of $105.3 billion in transfer payments and the loss of personal and social insurance tax collections — or 768 percent of the net investment,” the study said.
“Additionally, 2.6 million jobs were saved in the US economy in 2009 alone and $284.4 billion in personal income saved over 2009-2010.”