GM Lies

General Motors ran an advertisement in today's Wall Street Journal saying "We've repaid out government loan. In full. With interest."

This is consistent with a column GM's CEO wrote with the same message.

There is one problem with this.

It isn't true.

The government originally lent GM tens of billions of dollars, most of which was converted into equity during GM's bankruptcy. A small portion remained as a loan.

So what GM has done is repay the small portion that remained as a loan. But the vast majority of the original loan remains unpaid as GM equity. And it is very unlikely GM will ever make enough money for taxpayers to get their money back.

If you want to buy an American car from a company that doesn't have government money invested in it - buy Ford.