Wednesday, April 28, 2010
"A Fraud of a Special Kind"
Scott Johnson, of Powerline Blog posted this piece today about a "fraud of a special kind" being perpetrated, by the Obama administration appointed C.E.O. of General Motors, on the American public by his claim that GM has "repaid our government loan in full, with interest, five years ahead of the original schedule."
Last week General Motors chairman and chief executive officer Edward Whitacre took to the pages of the Wall Street Journal to make an important announcement: "The GM bailout: Paid back in full.". Whitacre asserted that GM had paid back all the funds it borrowed from the United States in full with interest.
According to TARP Special Inspector General Neil Barofsky, the source of the funds in whole or in substantial part was the United States government TARP program, not GM earnings.
Whitacre's Wall Street Journal column was, in short, a fraud. But it was a fraud of a special kind. It was a fraud committed with the assistance if not the urging of the Obama administration.
You can read the whole Scott Johnson post here.