re: #336 Killgore Trout

You can google and learn the current interest rate yourself if you want to be informed. Go ahead, take a look.

I don’t need to, because you’ve already posted it, and I’ve already quoted it back to you. To refresh your memory:

(b) RATE OF INTEREST; TIMING OF PAYMENTS.—
10 (1) RATE OF INTEREST.—The annual rate of
11 interest for a loan under this Act shall be—
12 (A) 5 percent during the 5-year period be
13 ginning on the date on which the President’s
14 designee disburses the loan; and
15 (B) 9 percent after the end of the period
16 described in subparagraph (A).

Again, there is NO WAY IN HELL GM could get a 5 year 5% loan on its own, anywhere, right now.

GM currently has a “junk” credit rating. If you check out GM bonds, current yield on some of them is above 65%!

In fact, on its own, GM probably couldn’t borrow $14 Billion ANYWHERE, period. Its just too bad a risk. Hell, the entire MARKET CAP of GM is only $1.3 Billion right now.

Sure, lending GM the money is not quite the same as just handing it the money with absolutely no expectation of repayment, but for the third time, when someone lends you money at a rate far less than the prevailing market interest rate, that is a GIFT.

You don’t think some of GM’s competitors would appreciate a nice cheap loan at 5% interest?

What do you think happens if GM can’t pay it back? Think there is any likelihood of it NOT happening?