Skip to comments.Obama's $25 Billion Government Motors Lemon
Posted on 08/14/2012 4:52:59 PM PDT by raptor22
As the Obama campaign continues to tout the GM bailout as an industrial policy success, the Treasury Department continues to revise upward the staggering losses inflicted on U.S. taxpayers.
On the day Government Motors, aka GM, announced it was recalling at least 38,000 of its vehicles Impalas used by police nationwide and in Canada due to a crash risk, a new Treasury report said it now expects to lose $25 billion on the bailout, $3.3 billion more than forecast earlier.
As the Detroit News reported, this loss was based on GM's stock price at the time of the report, which was 15% higher than the previous report. Because the stock price has fallen since then, the latest report likely understates taxpayers' real losses.
The monthly report sent to Congress last Friday covers predicted losses through May 31, when GM's stock price was $22.20 a share.
On Tuesday, GM fell $0.26, or 1.3%, to $20.21.
At that price, the government would lose another $995 million on its GM bailout. The report notes the government still has 500 million shares of GM and needs to sell those shares at $53 each for the government to break even on the bailout.
Worse yet, the entire financial loss suffered by taxpayers is the result of a massive and planned redistribution of wealth from them to the auto unions that form a key part of Obama's base and re-election drive.
(Excerpt) Read more at news.investors.com ...
Too big to fail, yet too big a fail
I was planning on buying a new Camero until Barack the Hussein and his union thug army took over GM. I bought a Ford Fusion (”Built without taxpayer dollars”) instead. We love it!
Redistribution of wealth ping
"What a maroon."
Why would anyone who saw how GM Stockholders were screwed in favor of Unions ever by GM stock at any price?
We have always driven General Motors (now Government Motors) vehicles, but will never, never buy another of anything GM puts out.
38,000 Obama Crapwagons recalled?????? Crapola Government Motors to lose 25 billion with a B??? Hopefully all of the state and local goverment twits who stopped buying the only real police cruiser out there, the Crown Victoria, will be begging Ford to start up the Crown Vic line again. Ford should sell them all they want, at twice their former price. Screw the bastards. I love it.
What Obama never mentions in all his crowing about how well GM and Chrysler have done since the government takeover is that they had a huge hand up from the Japanese tsunami in early 2011 - Japanese automakers were essentially out of business for close to six months after that disaster, and of course US makers had a big advantage for a while with significantly reduced competition from Japan - GM would have probably sold far fewer cars, and their stock rest closer to $10 a share than $20 by now, if not for the tsunami........
Thanks for the ping.
Actually it looks like the LEO car of the moment these days is the Chevy Tahoe.
No sane person would.. that is why it is in the tank.
First he came for the stock and bond holders, (IMHO illegal)
Now he comes for the rest of us.
The bond holders are on the wrong end of the bus.
4 Liberty..great pic. says it all.