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GM, a failed investment
Philadelphia Inquirer ^ | Sun, May. 6, 2012 | John Lott

Posted on 05/06/2012 5:22:16 AM PDT by Bobbys1963

If you invested more than $100 in a company, would you be happy if your shares were worth only $36? By anyone’s definition that investment would have been a terrible failure.

Yet, that is how the federal government’s investment in General Motors looks. The federal government has put in well over $100 billion into shoring up General Motors, but the entire company, not just what the government owns, was worth only $36 billion on Tuesday.

GM sales have bounced around, rising in March and then falling in April, but investors’ best guesses for what future sales will be are already in GM’s stock price. And surprisingly, a recent Rasmussen poll shows that support for the bailout has been rising and now 44 percent of likely voters say that the bailout was good for America.

The money the government spent adds up quickly . . .

(Excerpt) Read more at philly.com ...


TOPICS: Business/Economy; Government; Politics/Elections
KEYWORDS: bailout; elections; fraud; gm; johnlott; obama; tarp; unemployment

1 posted on 05/06/2012 5:22:17 AM PDT by Bobbys1963
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To: Bobbys1963

Not only has the Federal Government given GM $100 billion, but the bond holders and stock holders had their multi-billion investments wiped out.

GM was able to stop paying interest to the bondholders and dividends to the stock holders and still if cannot be competitive.

This is what happens when a socialist government and a communist trade union takeover a corporation.

How is that Volt working for you now?


2 posted on 05/06/2012 5:30:42 AM PDT by Presbyterian Reporter
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To: Bobbys1963

GM should have been allowed to go through Chapter 11 bankruptcy. They should have broken the union contracts and started over without the UAW.

I buy Toyota trucks for precise reason that they are non-union made.

I would have purchased a new GM, Dodge or a Ford last fall except for the fact that they are all union made and bought the Toyota instead. Made in a non-union factory in Indiana.


3 posted on 05/06/2012 5:33:17 AM PDT by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: Ouderkirk

I am like you. We just purchased a new car to replace our 10 year GM vehicle.

We did not visit a GM or Chrysler dealership in our shopping trips.

I felt that if a company is so incompetent that it let itself go bankrupt, then I have no desire to buy their products.


4 posted on 05/06/2012 5:41:33 AM PDT by Presbyterian Reporter
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To: Ouderkirk

I have my first Toyota, a Tacoma and love it.

My last truck was a Ford Ranger XLT that gave me almost 10 years with maybe a week total downtime.


5 posted on 05/06/2012 5:42:45 AM PDT by wally_bert (It's sheer elegance in its simplicity! - The Middleman)
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To: Ouderkirk

And I bet you like the quality of the workmanship on your Toyota better than the UAW cars as well. I will never buy a new GM or Chrysler product again...indeed, it breaks my heart cause I love the Jeep Commander...but, I will not support the UAW!

I love Toyota!!!


6 posted on 05/06/2012 5:45:17 AM PDT by Wpin ("I Have Sworn Upon the Altar of God eternal hostility against every form of tyranny...")
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To: Bobbys1963

Whoa! That writer is gonna get whacked on South Street.


7 posted on 05/06/2012 5:50:02 AM PDT by Safetgiver (The predator class is upset because they are being shot.)
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To: Bobbys1963

What success GM has had since the fake bankruptcy was in part built on people going for some of their little gas savers, due to freakouts over the soaring price of fuel.

This is precisely what the planners planned, and many went along like good little foot soldiers in the statist revolution.

I can see the pressure they felt, but it was done blindly, based on the family budget, and not with full understanding of the manipulation-capitulation involved.

Irony for the statists...even that capitulation can’t hide the truth of bad results.

The old media can hide it, though, and it’s up to the new media to trump them.


8 posted on 05/06/2012 5:52:46 AM PDT by txrangerette ("HOLD TO THE TRUTH...SPEAK WITHOUT FEAR" - Glenn Beck)
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To: Bobbys1963

“It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder.” - Frederic Bastiat 1801-1850

http://www.usdebtclock.org/


9 posted on 05/06/2012 6:13:42 AM PDT by PGalt
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To: PGalt

Americans are innumerates.


10 posted on 05/06/2012 6:20:15 AM PDT by wrencher
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To: Ouderkirk
The sad fact for the UAW automakers is that they jumped in bed with the liberals with the bailouts, when in fact their customer base was middle class conservative males.

They make nothing on eco-twit buzzbomb toy cars, all their profits came from full size trucks and SUVs. Something liberals mock and don't buy.

Now they pissed off their middle class taxpaying buyers and are doomed. When the bailouts end they are out of business.

11 posted on 05/06/2012 6:24:53 AM PDT by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: Bobbys1963
Wow...

Market Cap of 36 Billion. Ford borrowed against all assets to the tune of 30 billion and how as a market cap of 40.55 billion. With that said, it could rise dramatically if the stock price would rise where many think it should be. Ford is now almost investment grade and they are working on a novel approach to ameliorate the effects of the pension liabilities for salaried workers, which would get them to investment grade.

At somepoint and I have been saying it for eons, will Fords Free-Market Approach vs the GM Statist model become an issue this fall?

Especially when the Focus Energi comes out and is compared to the Volt and kicks it's sorry butt to the curb...

12 posted on 05/06/2012 6:27:08 AM PDT by taildragger (( Palin / Mulally 2012 ))
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To: Bobbys1963

Headline should read:

GM, a thoroughly corrupt and failed investment


13 posted on 05/06/2012 6:29:25 AM PDT by Bigun ("The most fearsome words in the English language are I'm from the government and I'm here to help!")
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To: Bobbys1963

GM is basically a car building pension fund....and as long as We the People continue to hold the following generation hostage to the appetites of the previous...life is gone be grim for all of us.


14 posted on 05/06/2012 6:30:44 AM PDT by mo (If you understand, no explanation is needed. If you don't understand, no explanation is possible.)
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To: Bobbys1963

Last Friday I bought a VW Beetle.

I shopped Audi’s, Mercedes, BMW and Porsche but never even thought about GM because if you can’t trust the company, you can’t trust their product.


15 posted on 05/06/2012 6:37:21 AM PDT by Psycho_Bunny (Burning the Quran is a waste of perfectly good fire.)
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To: Bobbys1963

Don’t forget the GM dealerships often owned by conservatives that were forced to close.


16 posted on 05/06/2012 7:02:19 AM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Oldeconomybuyer

“Don’t forget the GM dealerships often owned by conservatives that were forced to close.”

March 30th, 2009 I bought a new 2009 Sierra W/T off the lot at Noonan Pontiac in Sterling Heights, MI just when Obama fired Waggoner from GM. It was part of a March Madness special and was the only one they had. The dealership was within two months of being shut down. It listed at almost 22K but I got for 14, no cash out of pocket. I asked for and got a free bedliner with it. Chrome bumpers, OnStar, XM radio, and a 4.3 Vortec V6. Buying a great car depends on what kind of deal you can find or make for yourself and sometimes you get lucky but it all came together for me on this one. Too bad though. The people at Noonan Pontiac/GMC were great.

Best purchase ever!


17 posted on 05/06/2012 7:28:06 AM PDT by equaviator (There's nothing like the universe to bring you down to earth again.)
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To: Bobbys1963

It’ still hard to believe that Obama got away with taking over a company. I didn’t think that was legal.


18 posted on 05/06/2012 7:38:36 AM PDT by Ken the bugman
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To: Oldeconomybuyer; All

GM cut all the invoice to sticker price out of the cars. There is no profit margin for the dealers anymore. Invoice to sticker on a $28,000 Equinox is 750.00. Invoice to sticker on a $22,000 Cruze is 400. Chevy stores are folding left and right.


19 posted on 05/06/2012 7:38:49 AM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: equaviator

I made a similar purchase!
Bought the truck for less than 14K. The price reflected the uncertainty at GM. Ordered a metallic paint job. Delivery made in September, which could have been the end of production for that Texas plant.

I installed 22 inch rims, tinted the glass, put a cover on the box, and a pair of n-fab rails.
I get a LOT of positive comments, some even think I ordered some obscure special edition package.

Now, with the Bankruptcy and subsequent damage to bond holders, Dealers and Salaried staff, I will never but GM nor Chrysler.


20 posted on 05/06/2012 8:27:37 AM PDT by Steven Tyler
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To: mo

I call GM an “old age home for UAW members, that builds an automobile now and then”


21 posted on 05/06/2012 8:30:10 AM PDT by Steven Tyler
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To: Psycho_Bunny

You sound like a Top Gear - UK fan (which I have become a huge fan of - more for the humor than the politics).

They are generally not fans of US made autos and generally blame the demise of the British auto industry on managerial failure to meet engineering and production quality (read union) competitive challenges from Germany and Japan.

You get what you pay for!


22 posted on 05/06/2012 1:23:48 PM PDT by hotshu (Redistribution of wealth by the government is nothing but theft under the color of law.)
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To: beaversmom

BFLR


23 posted on 05/06/2012 10:38:12 PM PDT by beaversmom
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To: Bobbys1963

Ford took no money and is doing better.i wonder if Romney’s team is smart enough to mention this?


24 posted on 05/07/2012 5:54:43 PM PDT by hecht (Murray use your coaster)
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To: Ken the bugman
still hard to believe that Obama got away with taking over a company. I didn’t think that was legal.

The Chicago mob came to DC.

Baraq's "community organizer" years were spent getting a Master's degree in "operations"

If there's a 2nd term, this stuff will look like the warm-up lap.

25 posted on 05/07/2012 6:02:45 PM PDT by nascarnation
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