Just in time for the RNC Convention and the preezy debates...
More taxpayer $$$$ money down a rathole ping!
Any chance that Romney/Ryan will make this an issue?
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.
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.
A quick glance at Yahoo Finance shows analysts rate GM Strong Buy (6), Buy (9) or Hold (4). EPS estimates for 2013 exceed 2012. Cash and marketable securities are up from year end. I haven’t delved in to the term structure of their LT debt, but at first glance levels appear reasonable. All the OEMs have gotten better at managing production and inventories, and that is contributing to improved pricing. As a result of the recession, they all have also significantly reduced cost structure. Lastly, there remains significant pent-up demand for autos that should boost industry sales levels next year. Lastly, basing a bk foercast on the sales of a car that has yet to show up in showrooms for a company of this size seems pretty weak. I’m guessing any GM bankruptcy is a long ways off.
The problem here is not specific to General Motors although I OPPOSED all BAILOUTS because I never bought the elitist bull crap about too big to fail and I believe that Gubmint should not declare Lehman Bros. a loser and heavily Saudi invested Citibank a winner through the use of selective bailouts.
The problem with GM is very basic. The work force is SHRINKING and the population is growing both through rightful birth and wrongful illegal immigration.
Few business will prosper when the population is growing and the workforce is diminishing.
Of course that is a classic definition of socialism, increasing consumers and diminishing producers.