Boston, MA 10/30/2013 (wallstreetpr) – There are reports circulating in the market that state that the U.S. government is expecting to lose a total amount of approximately $9.7 billion. The money will be used for bailing out General Motors Company (NYSE:GM). It is worth adding that the government had to spend $49.5 billion in order to save GM five years ago. However, the special inspector general who is associated with the troubled asset relief program has commented that of the $49.5 billion, the government managed to recover $34.5 billion. However, even after recovering such a huge amount, there was a deficit of net total of $15 billion.
The government managed to get 61 percent of the stock of GM in bailout. It has managed to sell all except 7 percent. If you state the same in number of shares, the total count comes down to 101 million.
The inspector general for troubled asset relief program also stated in a report that was given to congress that the government is depicting a loss worth $9.7 billion in is books. In order to balance the report and to prove that the facts that are being represented in the books are right and not a misrepresentation of facts, the government stated that it bailed out GM and Chrysler because doing so has helped them in saving huge number of jobs.
As per official figure, the government believes that it ended up saving 1 million jobs. Had they not bailed out this company, so many job opportunities would have been lost and it would have further worsened the current employment problem and thereby it would have made the problem of recession even more troublesome and extensive.
Hence, the government has defended its move to bailout GM because they believe that it will be for the greater good of the common people.