Headline of the day you won't see anywhere: GM bailout costs skyrocket

It's tucked away in a blog post at the Detroit News and may make the business pages elsewhere. But you know that if the bailout costs for GM were less than expected, it would be frontpage news: The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.'s steep stock decline. In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion. The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in 2009. The big increase is a reflection of the sharp decline in the value of GM's share price. The current estimate of losses is based on GM's Sept. 30 closing price of $20.18, down one-third over the previous quarterly price. GM's stock closed Monday...(Read Full Post)