The Treasury Department has just revised its estimate upward to $25 billion in losses, and it will probably be more than that when it's all said and done. Taxpayers also suffered a $2.9 billion loss in Chrysler (the carmaker had received $12.5 billion through TARP programs) in 2011.
"This announcement is an important step in bringing closure to the successful auto industry rescue, it further removes the perception of government ownership of GM among customers, and it demonstrates confidence in GM's progress and our future," claimed GM Chairman and Chief Executive Dan Akerson in a press release. But really, the bailout exemplifies much of what's wrong with government. The cronyism. Wasted taxpayer money. The government's propensity to interfere with the marketplace and prop up losing propositions.
With news of the government getting out of the car business, we'll probably see a spike in the stock price. Maybe once Obama has completely dropped our "investment" it'll take off. But a success for taxpayers? Hardly.
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