Auto Bailout Cost Jumps to $25 Billion

The overall cost of the 2008-2009 automotive federal bailout has increased by 15 percent to $25 billion in a large part due to General Motors’ lack of success. Even the White House is being forced to admit that its projections about how much the automakers would be able to repay have been wrong. The Obama administration says that that it now doubts that the American taxpayer will be able to recoup about $25.1 billion of the bailout.

Reflecting its poor performance, GM’s stock price sits around $20 a share, which is much less than the government’s estimated breakeven point of $53 a pop.