If you watch TV during prime time, you've no doubt seen the GM commercial featuring its CEO, Edward E. Whitacre Jr., claiming that the "new" GM has paid back its federal loan, "in full, with interest, years ahead of schedule." After hearing that I immediately thought that GM is starting to turn things around, thanks to cars like the new Camaro.

Well, Forbes did some actual research (unlike the majority of the press) and found that Whitacre's claims are a total fantasy.

Democrats, fearful that they would lose precious votes if they didn't help auto union members from losing their jobs after strangling GM, quickly gave GM $49.5 billion to keep it afloat, thus allowing the Democrat-voting block known as unions to keep their jobs. This also gave taxpayers a 60.8% stake in the company. Democrats then gave GM a "loan" of $6.5 billion at a sweet 7% interest.

Canada also gave GM some money so that their employees could keep their jobs: $1.4 billion as a pure loan, and another $8.1 billion for an 11.7% equity stake.

So when the CEO of GM claims they paid off their loan, they only paid back the $6.5 billion loan.

But GM didn't really pay back the loan with profits; they're still losing money each month. Obama gave GM another $13.4 billion in an escrow account as "working capital." GM then used that money to pay back their "loan" and quickly put out TV ads claiming they'd paid us taxpayers back.

All this to keep American workers on the job (aka UAW workers who overwhelmingly vote Social Democrat because Conservatives don't reward economic failure.)

The whole story makes me completely sick to my stomach.

As prices surge, Thailand pitches OPEC-style rice cartel. (2008, May 5). The Wall Street Journal, p. A9.

Dalmia, S., Still Government Motors, (2010, April 23). Forbes.com