Payback Time


According to “a source familiar with the matter,” General Motors is planning to pay off its government loan earlier than expected:

The nation’s largest automaker plans to pay $1 billion per quarter until the $6.7 billion loan is repaid, according to a source familiar with the matter.

….”This is a result of the company performing modestly above expectations,” said the source, who spoke on the condition of anonymity to discuss the situation. “Obviously, the company has a long way to go and a lot of important things to execute on.”

….The $6.7 billion debt is not due to be repaid until July 2015, but the company has exceeded projections, partly by going through bankruptcy more rapidly than it thought it would, and partly by cutting costs.

Am I the only one who thinks this is dumb?  Is GM really that convinced that it’s out of the woods and won’t be running short of cash anytime in the next few years?  Why?  Has the business cycle suddenly been repealed without anyone telling me?  Are customers suddenly swooning over GM cars?  What’s going on?

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

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It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

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It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

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Clara Jeffery, Editor-in-Chief

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