Tax Payers to Lose $25 Billion on Auto Bailout

The new estimates are in and the cost of socializing GM and Chrysler’s poor management and unreasonable unions? At least $25 billion. I’ll bet it ends up being much more.

But no big deal. It’s just your money.

(From The Detroit News)

“The Treasury Department says in a new report the government expects to lose  more than $25 billion on the $85 billion auto bailout. That’s 15 percent higher  than its previous forecast.

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.

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.

On Monday, GM stock fell $0.07, or 0.3 percent, to $20.47. At that price, the  government would lose another $850 million on its GM bailout.”

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