In case you’re one who scoffs when those who oppose government intervention into the private sector talk about “government” motors, perhaps these numbers will push you to rethink your support for such things even if you don’t have a problem with the interventionist policy itself. 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.
The folly of this policy, endorsed by Democrats and Republicans, is still playing out for taxpayers.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout. At the current price, the Treasury would lose more than $16 billion on its GM bailout.
The latest report on this unwise move comes amid polling that shows just one in four Americans believe it is appropriate for government to invest in private industry.
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