Tuesday, April 27, 2010

Keep Your Eye On the Ball and Not the Hand That Moves It

GM is playing the video below all over the place. I've seen it on broadcast tv, cable tv, in a pop-up internet advertisement, and heard it as an ad on the radio. It's a really slick and well-made ad. However, it's also mostly lies.

Early last year GM received an $8 billion loan from the federal government. In addition, it also received nearly $59 billion in TARP funds. GM is operating in the red right now, so essentially what they did was take part of the TARP funds they received and used those to "payback" the loan they received. Make no mistake GM is in trouble, but with the U.S. and Canadian federal governments owning more than 50% of the company, expect to see lots more slick advertising like this to make you believe all is well.

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