How right you are, my friend, how right you are.
Posted on 08/16/2012 7:28:35 AM PDT by SeekAndFind
President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.
Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.
Right now, the government’s GM stock is worth about 39% less than it was on November 17, 2010, when the company went public at $33.00/share. However, during the intervening time, the Dow Jones Industrial Average has risen by almost 20%, so GM shares have lost 49% of their value relative to the Dow.
It’s doubtful that the Obama administration would attempt to sell off the government’s massive position in GM while the stock price is falling. It would be too embarrassing politically. Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.
GM is unlikely to hit the wall before the election, but, given current trends, the company could easily do so again before the end of a second Obama term.
(Excerpt) Read more at forbes.com ...
Obumo may be a dope touting his saviourship of GM BUT
both Rinos and Dems went along with the initial paniced stupidity.
Therefore, this particular foulup isn’t going to get much exposure. It is, however, an excellent example of elite,
ill-informed, top-down gov’t management. Obumo’s solution to GM’s “problem” was politically inspired - not the way successful businesses operate.
Wait one darn minute. A year ago GM had an advertisement saying they paid off all the Government Loans.
If you can’t believe Commercials, what can you believe?
I have a 2001 GMC Sierra C2500 Crew Cab Pickup.
Bought it new in OCT 2001 after the SEP 11 attacks.
I’m through with GM completely, mostly due to the bailouts, but also because this current truck isn’t near as well made as the 89 Super Cab that preceded it.
Its Ford or Foreign from now on.
You are right on the money. I travel pretty much every week and about half the time my rental car is a Chevy. Truthfully they’re nice enough cars. They can be competitive car vs car.
The problem is not the product; the problem is what ‘they’ have done to the GM BRAND.
To your point about the “newly minted anything-but-GM crowd” too many in the market would buy anything BUT a GM, and the Progressives all want to drive their foreign marques. Who’s left? A much smaller available market.
GM and the gummint have ruined the stature of the GM brand. THAT is a HUGE loss in value/goodwill. The stock NEEDS to be lower.
Just in time for the RNC Convention and the preezy debates...
How right you are, my friend, how right you are.
More taxpayer $$$$ money down a rathole ping!
Any chance that Romney/Ryan will make this an issue?
well good. I am fed up with them. Unions fail companies all the time. why do you think our auto parts come from other countries.UNIONS. Obama is a UNION prez. That makes him a fail to start with. Union member better realize evenually Unions will cause their jobs to end.
Flashback:
Romney: U.S. should sell GM stake
Mitt Romney says yes. And he wants President Obama to do it now...
...GM shares currently sit at $25.40, far below the $51 per share price necessary for taxpayers to break even...
The administration is trying to pretend that GM was “rescued” and they have criticized Romney for saying that they should have been allowed to go into bankruptcy. Despite the attempts to hide the fact, they did indeed go into bankruptcy but it was a politically driven process with little attention given to the structural problems which caused the initial failure. A traditional bankruptcy as advocated by Romney would have had a good chance of saving GM as a viable company. It is quite likely that GM will have to go through a legitimate bankruptcy but will never recover what was lost through the bastardized process forced on them by Oboma.
“Any chance that Romney/Ryan will make this an issue?”
Well, it sure won’t stop Obamy from lying and telling us what a success he made of GM, will it?
It would be nice to have a party that actually believes that this is wrong.
” More taxpayer $$$$ money down a rathole ping! (GM)
Any chance that Romney/Ryan will make this an issue? “
Too early to tell.
Thanks sickoflibs.
Maybe they’d get somewhere if they weren’t forced to sell Volts and other such nonsense. No one, or very few people, can afford those designer cars that the gov’t is forcing on the corporations and customers.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.