GM in trouble?

Initiative response to following article: http://www.foxnews.com/politics/2010/04/23/gm-hot-water-ftc-truth-advertising/

GM is finally repaying their government loans, which is a good thing, but Americans and politicians are saying its not so much on the good side.  GM owed the government some $8.1 BILLION.  The fact that they are repaying this should be a good sign.  It would normally show that GM is having at least a normal profit right and that the government is getting money back that could be spent in other places.  But, the people of america do not see it like this.  They were first disappointed that the government gave GM a second chance, but now they are just mad that GM is repaying the loans.

Why would they be mad if GM is repaying their loans.  The company GM is repaying their government loans by using bailout money.  This bailout money comes from other loans that GM will one day have to pay off.  The company is in fact not making normal profit and is still losing costs, because the costs are much higher than that of the revenue.

Not only is GM still in debt and can’t make the money it needs to survive for long, they are also in trouble for advertising.  Recently commercials are saying that GM has paid off all of its loans.  While the company did pay off its government loans, they are paying it with money from other loans that they need to pay off.  The company might be looking at facing legal trouble if investigations show that the commercials were misleading and misguiding.  This may cause even more financial or political issues for GM.

Overall, GM is not in a good public eye at the moment.