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Welcome To The Banana Republic: GM In Hot Water With FTC Over Misleading "Repaid Bailout" Ad When All Just TARP Shuffle
We are too busy maxing out our credit cards buying AAPL shares after hours into the parabolic blow out (using Sigma X of course, how else could we subpenny front run our own orders?), stacks of Kindles, 7th vacation homes with negative equity, and LBOing zero EBITDA companies to comment on this, suffice to say that if you ever needed confirmation that America is a banana republic in which fraud, corruption and lies are now the norm, here you go: Government Motors is now blatantly lying to its existing and future buyers, and everyone in the administration is complicit.
From Fox News:
General Motors is running ads on all the major networks this week claiming it has repaid its bailout from the taxpayers "in full." But the claim isn't standing up to scrutiny from lawmakers and government watchdogs who have found that the automaker was able to repay the bailout money only by dipping into a separate pot of bailout funds.
Uhm, what's wrong with that? That's precisely the reason why the market is now on for an 8th straight up week. In order to make the rich infinitely rich (before there is revolution, hyperinflation or dollar devaluation), the Obama people must resort to anything and everything.
General Motors is running ads on all the major networks this week claiming it has repaid its bailout from the taxpayers "in full." But the claim isn't standing up to scrutiny from lawmakers and government watchdogs who have found that the automaker was able to repay the bailout money only by dipping into a separate pot of bailout funds.
The TV spot may land GM in hot water with the Federal Trade Commission over its truth-in-advertising laws, which prohibit ads that are "likely to mislead consumers."
"We have repaid our government loans in full — with interest — five years ahead of the original schedule," says Ed Whitacre, chairman and CEO of General Motors Company, asking Americans to give the bankrupt company another look.
But a top Senate Republican has accused GM of misleading taxpayers about the loan repayment, saying the struggling auto giant was able to repay a $6.7 billion bailout loan only by using other bailout funds in a special escrow account.
Iowa Sen. Chuck Grassley's charge was backed up by the inspector general for the bailout — also known as the Trouble Asset Relief Program, or TARP. Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.
"It appears to be nothing more than an elaborate TARP money shuffle," Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner.
You Decide: Did GM Try to Pull a PR Fast One?
The FTC said it could not provide any comment on the ad or whether it had received any complaints or inquiries about GM's claims from the public or from government officials.
The FTC has a division of advertising practices that investigates possible false claims, but specific investigations are not made public. If the FTC determines that truth-in-advertising laws have been violated, the agency files complaints against the organizations in violation.
GM announced Wednesday that it had paid back the $8.1 billion in loans it received from the U.S. and Canadian governments in 2009. Of that, $6.7 billion went to the U.S. Treasury.
Again. Banana. Now go ahead and buy whatever you can. The administration will soon make it illegal to not be in debt. Might as well have a head start.
h/t Donald
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Oh snap! I was just about to go buy me a new Escalade after seeing that GM was no longer .gov beholden.
/Sarcasm by the way
Stupak is as Stupak does...
tried funding my trading account with the CC, but was refused.
deleted
Just use one of the "write a check from your credit card account offers" that I receive weekly from Chase. Deposit it to your checking account and transfer it to the broker. 0% interest for 9 months but a 4% service charge up front. But what's 4% when you buy Dow futures on margin and it goes from 11,111 to 36,000 in the next couple of weeks?
They essentially got a new credit card and did a balance transfer.
Good thing the FTC is a completely independent organization that is not sensitive to political pressure. Phew!!!
What about the "equity" the gov't owns? Did I miss the IPO? WTF!!!!!!!!!!!!!!!!!!!!!!!!!!
The Treasury should lend the Treasury 20 trillion dollars so the Treasury can say it paid off the national debt, with a generous tip.
We need the Fair Broadcaster Act (or WETF it's called), to stop this blatant slander of our God; the US Goobermint and it's minions!
Loan me $1,000,000 then loan me $1,500,000 so I can pay you back with interest.
Outrage.
Mate, this is HILARIOUS!! I saw this clown on TV last night and said to my wife "Dear, this is bullshit. They are unprofitable, still bleeding cash, borrowed $8Bn, and are now telling us that with NO profits since, they have PAID it all back. This guy is a LIAR"
I think she got the point. What a turd this clown is. Corporate America is a cesspool of lying, thieving, pieces of shit like this.
HEY! That's a slur against dishonest anthropomorhic shit.
Same here. Watched the news with mouth agape and thinking what lying SOB's
Just another fraudulent aspect of our fraudulent system...
It's all one, big confidence-based house of cards. It is amazing that these clowns can lie with the EXPLICIT backing of the government PURELY to give the masses the impression that "AMERICA IS COMING BACK, BABY!"
Fraud upon fraud upon lie. Unfuckinbelievable.
Yea, same free ads all across the world as I flew from Asia,Yomiuri, South China Morning Post, CCTV Biz Channel (starneg this one drank US kook-aid, probably fed by Associated Press or Bloomberg), BBC, all very well-cordinated lies. The day before I just read GMAC raised a few billions from the junk bond market, we are living in a world of coordinated lies, Big Brother World.
Never forget ally bank. All over the TV as if an independent bank where they show kids getting taken advantage of by the banking system without one word that ally is a GM -government-taxpayer cash backed bank. They advertize that they are a bank that doesn't hold back!
We're nowhere near as drunk as they got on other people's money. Sheer delusion.
Let's see, illegally stiff the (unconnected) bondholders then convert a tarp loan from the usa and canada into tens of billions in stock and then "pay back" a mere $8B. I see why the executives get paid so much, they steal from Sam and Peter to pay Paul, and their name is Paul.
It's a Lee Iacocca trick from the first Chrysler bailout days. Even the wording about paying early with interest is right out of Lee's old walking-around-the-camera TV ad.
Big difference is Lee actually had the money.
I guess the GM brainiacs thought nobody would remember anything from nearly 30 years ago. But I am Rainman.
Yeah, this GM deal is absolutely insane from robbing bond holders,dumping massive debt in record time via bankruptcy,borrowing money from the gov when they got out and then paying them back with their own money. WOW.
What's the difference? There aren't any cops around to arrest anyone from here on out.
Lets all cheer "Lying, stealing and cheating, hooray the market is up again today!"
Our money grows on trees. Soon enough, people will realize it has the same value as leaves do and will be bagging them up or chopping up and using as mulch.
Seriously, where will money come from to cover our deficits??? M3 is contracting now!
Have no fear. As Zimbabwe Ben has said he has the technology, the printing press. They cannot run out of money, and he can fund any deficient no matter the size! He's really kind of like a super hero. After all could Batman fund the debt with nothing but a few electrons in a computer?
Haven't bought new in years, new car smell makes me ill, cuz of the thrashing the value takes just driving off the lot. Buying from a neighbor with my own mechanic doing the inspection before the sale works just fine. My kids just leave fries smashed in the carpet, why should I pay full price for a rolling dumpster?
Screw Ally, too... (formerly GMAC), they'll never get my business if this story proves true.
Yeah, Ally bank is a total scam... Not many people realize that they changed their name from GMAC to Ally in order to convince people that it was not another taxpayer-robbing vehicle for fraud. Thanks for mentioning...
ORahmaRod's 2012 slogan "Yes Yukon"
FASB 157 is the ultimate expression of the lie, cheat and steal Boomer mentality. This is just another example.
It is best to just get out of the Boomers self-destructive way.
I always liked the Denali SUV, an anagram for "denial."
"You may be able to get away with this bullshit in the financial system, but here in TV advertising we have standards!"
+1 Funny!
The fraudsters at GM take money from our grandkids paychecks for their union ponzi, then lie to our faces telling us that we've been made whole. I urge everyone to take a few moments, log on to both the GM website and the FTC website, and tell them that this is not OK.
Pot meet kettle.
It is a wonder to behold that our lying sack-of-shit government would accuse any business of lying.
Lying has become culture and our government set the top tick. They encourage lying - just look at the fraudulent bank balance sheets sanctioned by the criminals formerly known as regulators.
Unbe-fucking-lievable.
The Big Theives hang the Littles ones.
Don't steal. The Government (aka bankers) don't like competetion.
Math Question/Answer: 69!
"The FTC said could not provide any comment on the ad or whether it had received any complaints or inquiries about GM's claims from the public or from government officials"
They have a complaint now. I just filed one at ftc.gov. I heard the ad today on the radio and could not believe what I was hearing. Anyone else that heard or saw the ad should file a complaint with the FTC.
Click here to file your complaint with the FTC!
https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en
"Complaint could not be processed at this time."
What a bunch of ass-clowns.
Click here to file your complaint with the FTC!
https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en
How about this SEC filing? Is it not as egregious as the FTC regarding truth in advertising?
http://phx.corporate-ir.net/phoenix.zhtml?c=231169&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NjkwMTI5MCZhdHRhY2g9T04mc1hCUkw9MQ%3d%3d
Amazing that this was yesterday's news.....
Cavuto was very circumspect then.
Washington is now complicit with the crime. No enforcement actions means it is de facto government policy.
It is time to unelect'em
Accountability starts with you in the voting booth voting against incumbents of whatever political moniker.
Just vote against all Dims and selected Repubes.
A lot of good conservative R's out there that can, and have, read the Constituition.
Good one, I needed that laugh. Thanks! Everyone thinks their children aren't bad, just the other kids.
I agree, everyone should vote independent just to prove the point to the two parties that we are tired of this.
Of course I am considering highly of creating my own political party and am looking for "supporters", was thinking of a name like The Unruly Mob.
So GM is in trouble for doing exactly what Congress has been doing for 30+ years?
C'mon, people. The fedgov commits greater fraud than this on a daily basis. If you don't already know, look up "social security trust fund" and find out what it is, where the money supposedly in it has gone, and how this is all fradulently portrayed by most of Congress and most administrations.
Here is the link for the SEC
https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en
If I send porn with my complaint, do you think they will process my concerns more quickly?
Any one got anything good with like a tranny and a donkey? And another with a tranny and an elephant? Wouldn't want to be partisan.
+1000
Mudfall does the trick for my roommate every time..
How about hermaphroditic donkey and elephant doing each other in random ways.
define 'random' :^)
your good,
she's good, that's my girl.
Yes, as long as it's the right kind of porn. You seem to have the idea.
BTW have not forgotten your list request from a week ago, will have to write it up and insert in an appropriate thread one of these days.
Only if it hits their G(Mmmmmm) spot.
I knew there had to be more to it than GM actually generating enough to repay the loans. I'll be spreading this around this weekend.
We need a hearing.
don blankenship of massey energy would be holding down a rope rather than an opinion in old dodge city
I'm glad this news didn't break at 3:30pm today, it would have meant another +50 points on the DOW.
Is there anything left in this country but fraud and deception????
(rhetorical question only, no answers required)
ok, no answer for you!
My exact thought when I first read this.
If fraud was removed from America all that would be left is porn and donuts. So the SEC would hardly even notice the change.
if that's the market price for fraud removal, i'm all in.
Ouch!
+1000
Not even donuts. Krispy Kreme was a fraud too.
But Lawrence H. Summers told me they paid it back! And he never lies!
http://www.huffingtonpost.com/lawrence-h-summers/the-auto-industry-a-yea...
He wishes he could talk like Greesspan and be revered as long as he kept the punch bowl full. His only problem is he uses simple English which exposes his shortcomings. The 86'd him from Harvard for hoof in mouth disease. He should go abroad for an extended stay.
A Government agency attacking a Government agency.
Who'd a thunk it?
To add insult to injury...I guess we paid for the ads.
Just curious. Does this constitute securities fraud, insofar as they misrepresented their financial status (albeit informally). Doesn't seem likely that the bar is high enough for this, but thought see if anyone knew definitively.
Nothing constitutes securities fraud anymore, the SEC just watches porn all day.
No wonder they didn't see it cumming.! Their mommy should have told them it would send them blind.
GE ==> generally evil
with respect to the last 3 years of financial 'education', i will never (knowingly) buy anything from GE again.
my first personal boycott
that's all good, but ...this is general motors.
oops. blush. Freudian slip?
"so, please mr knoknot, tell me more about this issue you have with these companies that start with 'general'..."
The comments here have had to be some of the funniest stuff I've read in while..thanks everyone for making my day today..hahaha..:-)
+1000
Whitacre reminds me of the stereotype of a used car salesperson
http://farm4.static.flickr.com/3037/2845271661_dc72b59b51_o.jpg
OBooger:
We need a study to commission that, errr, ahhh, or something to that effect; like a breathilyzer.
When potential car buyers discover that Ed Dimwit-acre has stooped so low as to try and bait the public with "pseudo-patriotic BS," they will run the other direction and buy Toyotas and VW's. Then when sales takes a dump in the next two quarters, it should be time to send this nitwit back home.
Memo to Ed, "not everyone stopped their education after getting by in the Public Screwell System."
didn't whit(green)acre(s) used to run a phone company just like Mr. Haney
http://www.youtube.com/watch?v=KsEhXE5IUCQ
Just another reason I don't watch tv. Any lib/dem/socialist will tell you. You can't believe anything on Fox News.
Can the return of the Hummer be far behind? Its a mad mad world.
Got mine this morning! :)
Here's an opportunity for a new financial product: the revolving bailout fund.
I was wondering how GM could pay back that loan when they where in the rad to begin with, know we know. They went to the TARP money and "borrowed" the money from there to pay the loans to the govt.. But I have a question which I already have an answer to, will they have to pay back the TARP money, and if not then all the recipients of the TARP won't have to pay it back either. We are a banana republic, and it's getting worse. They are doing everything they can to make it appear that we as a country and an economy is doing well, which is further from the truth. We still haven't felt the effects yet of the Commercial properties (you know all those strip malls and such you see empty in your community) or the prime loans or the shadow inventory being kept off the real numbers etc. etc.. For our market to have 8 straight weeks of positive in this economy says that our markets are rigged to ignore bad thoughts/trades/news and always go up up and up. When the hammer comes down on our economy, it's going to hurt and hurt bad.
Hmmmmm hmmmmmmm....
GM. I have to say I really enjoyed my Oldsmobile when I lived Stateside. It could take any amount of punishment, even though it was styled like an asses rump.
The deconstruction of style (for what that is even worth) was such an obvious long term play from the powers that hold the levers. Europe was to be the Style leader while beautiful American designs (right up to the Sixties, 64 Mustang Anyone???, just as one example of a long list). But the fall from grace was soooooooooooooooooo swift. Ugly seventies, listless and uglier 80's (K car anyone???) and then the swift decline up till now. Like a sick person, fractally speaking, GM cars reflected Detroit's poor Joe/Jane public, bloated on fast food junk.
All the while, Europe pulls one beauty out of the bag after another. Why one may ask, when GM ended up owning SAAB, Ford Jag etc. etc.? Scam.
Design arbitrage. Efficiency arbitrage. Technology arbitrage.
Damn arbitragers need to be drawn (badly) and quartered.
The whole automotive business worldwide is one of the biggest scams pulled on the general public. Actually given the huge amount of Global GDP spent on making them run, crash, kill, repeat is THE biggest scam pulled on people worldwide. The airline scam is a close second.
GM's smiley success here in India (poor technology starved Indian's will buy anything,so much pent up demand after years of import restrictions) is a shining example of the self-same arbitrage. Their products here suck, using old old GM technology draped in awful modern GM designs. Now their Chinese partner is stepping in, in a big way.
The game is so darn obvious to those who can see.
Ugh! And yuck!
The whole system is so broken, it is really time it crumbled under the weight of it's own ugly bloatedness.
May the fall be swift and merciless (of course we will all suffer to one extent or another), but excision can be painful.
Tch!
So, has anyone here complained to the FTC yet?
Everyone in Detroit knew that the GM payback was just PR. They took money received for equity from the government and gave it back. Did they even pay interest? Not sure. GM has about $25B in debt. With out TARP sugar daddy, game over. However, in GMs favor they did reduce staff considerable and are still able to meet their launch windows.
Did Fritz come up with this idea? After all he is now a high priced consultant. Yes, they brought him back at some outrageous monthy fee and we did not even hear a peep out of Ron Bloom. Not a whimper, or even an ata boy Fritz.
Anyway,
Marchionne CEO of Chrysler Group LLC, is looking to break even (in 2010) on 2010-07-14, right before a VEBA payment of 315 Million is due on 2010-07-15. Chrysler is a ticking time bomb. They have an add on Monster for a very high level power train position. On monster?
Normally, this would be jobbed out to a very high profile placement agency. I can only guess they went this route first, and now they are doing the rounds on the job boards. People that know the car business, do not see Chrysler as a viable employer!
But, so what.
Marchionne got control of this company for what? Existing technology at Fiat? Marchionne cares about one thing, keeping enough key products and a small dealer network for Fiat in the US. He just wants all of the Chrysler dealer signs to change overnight to Fiat. Mission accomplished. The rest can crash and burn.
OK. So with all of this car stuff, where is Ron Bloom? Ron do you know what these guys are doing with the tax payer cash? If not, why are you still around? What exactly are your tasks on the Auto task force, or should I say farce.
Mark Beck
I knew this was a scam report by Motors Liquidation Corp ( why do they still call themselves GM I have no idea), when I saw the press release. How can you pay back $8.1 Billion when you are still losing money? They just lost another $4 Billion last quarter and been using TARP money to pay day to day operations for a year now. They ran a full page ad in the newspaper where I live regarding how they claimed they repaid all the government loans and in big letters said "With Interest". When does this lying crooked crap stop?
The American people need to wake up and start demanding these lying scum be charged with criminal activity. We are on our way to a huge revolt if this government doesn't get it's act together and soon.
Spend your doelarrs this week. It will be the last time they have this level of value. Yes, the level is weak, but it will get weaker after May day. Much weaker.
As I recall, late '08 early '09, in a hell bent effort to prevent failure, GM recieved $45 billion in increments of $15 billion. At this time it was determined that GM was a failure. Which brought on Government Motors (bailout) take over. So what's this $6.7b or $8.1billion? Should I need to forget the $45? Gift?
Don't forget about Chisler Motors.
I saw an add not too long ago showing
all the great discounts including a
$1500 dollar GMAC customer cash discount.
This was about a week after ally(gmac) just received
an additional 3 or 4 bln from the government.
Great, cash for clunkers might be over but the taxpayers
are still subsidizing Chiseler Motors thru these cash
bonuses.
I am intrigued by your ideas, and would like to buy ad space on your webstie. Perhaps we can work out an exchange?