Skip to comments.U.S. sells all its GM shares taking $10B loss
Posted on 12/09/2013 4:08:46 PM PST by Dallas59
The U.S. government ended up losing $10.5 billion US on its bailout of General Motors, but still says the alternative would have been much worse.
Treasury Secretary Jacob Lew announced Monday that the government sold its remaining shares in the Detroit automaker.
The government received 912 million GM shares, or a 60.8 per cent stake in the automaker, in exchange for a $49.5 billion bailout during the financial crisis in 2008 and 2009. It recovered $39 billion of the money, meaning taxpayers came up more than $10 billion short.
(Excerpt) Read more at cbc.ca ...
CBSnews is reporting a profit of 10B$
The alternative would have been the direct “loss” of 77,000 UAW jobs at GM in the US and indirect loss of 200,000 supporting jobs in the US. However, the vast majority of those jobs would have been picked up by other auto companies and suppliers, which would have taken over many of those facilities and hired most of the productive, skilled workers, although perhaps not with the requisite groveling in front of the UAW.
The alternative would have been to avoid crony capitalism. The alternative would have rewarded well-run companies and punished those that made reckless decisions. The alternative would have been MUCH better; what we chose instead would have made the National Socialists happy and did make their modern cousins, the Obama voters happy.
GM wasn’t bailed out. The UAW was bailed out.
BUT him saved those union jobs, motor voters don’t cha no?
“CBSnews is reporting a profit of 10B$”
there was a 10b profit. for the unions.
Get real, a bankruptcy would NOT have meant that GM close its doors. It would simply mean that they would have the opportunity to reorganize its debts and it would have allowed them to get out from under the crushing union contracts that pay a moron $100k a year to install windshield wipers.
The bailout was nothing but a way for Obastard to pay back the UAW for spending millions of dollars to elect Rats.
Now will they compensate the corporate bondholders that they shafted at the time of the takeover?
Why haven’t there been massive lawsuits over that?
There is the story of a “Corporate Raider” from the late 1980’s.
He was in court and fined some ridiculous dollar amount. He told the judge that it would take him a week or so to raise the money since he would need to liquidate his positions.
The Gov’t prosecutor said “That’s OK, we’ll take the positions”. He said “I strongly recommend you sell everything and take the cash”.
They ended up taking the positions and they got destroyed.
Wait a minute. The 0bama administration claimed GM paid back all the money. Of course we all knew that was a lie at the time. Did the admin ever admit the original lie? I lost my lie scorecard.
If it were within my power I would bleed the UAW of every penny that the bond holders lost. I wouldn’t care if they were left on the street living in boxes.
So even when Obama picks “winners”, they’re losers.
Poor. American. Taxpayers.
In plain words, did the government LOSE 10B....or did it MAKE 10B ???
BIG GOVERNMENT IS CRONY SOCIALISM/FASCISM.
Socialism Is Legal Plunder - Bastiat
the plunder continues
How to Identify Legal Plunder
But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.
Then abolish this law without delay, for it is not only an evil itself, but also it is a fertile source for further evils because it invites reprisals. If such a law which may be an isolated case is not abolished immediately, it will spread, multiply, and develop into a system.
The person who profits from this law will complain bitterly, defending his acquired rights. He will claim that the state is obligated to protect and encourage his particular industry; that this procedure enriches the state because the protected industry is thus able to spend more and to pay higher wages to the poor workingmen.
Do not listen to this sophistry by vested interests. The acceptance of these arguments will build legal plunder into a whole system. In fact, this has already occurred. The present-day delusion is an attempt to enrich everyone at the expense of everyone else; to make plunder universal under the pretense of organizing it.
Bastiat “The Law”
Obama throwing taxpayer funds after bad investments.
Screw GM and the UAW
Let them rot.
Where is the GOP?
What’s next, Detroit?
That is OUR money just thrown away.............
Well-stated (#14), hosepipe. BTTT!
That’s right, It had been reported that GM paid it back.
“...the alternative would have been much worse.”
Yes, Obama’s people would have had to buy their own sh*tty cars.
Re “CBS news is reporting a profit of 10B$”.
Media whores always report a profit whether it is real or not. Otherwise they would have to tell the truth and that ain’t gonna happen under the Obama regime.
It’s impossible to keep up with all the poop these jackworms throw in the air.
But nobody ever asks and nobody every explains “how the alternative would have been worse”. In what way? Obama bailed out GM to give the auto unions controlling interest by way of kicking the preferred bondholders under the bus to get nothing in return for their investments. The administration selectively put out of business all the suppliers who were not of the “correct” (i.e. DemoRAT) political bent. Even after the bailout, GM went bankrupt anyway and they’ll go bankrupt again with the unions running the show. GM has taken their manufacturing and marketing overseas to China. How has this “saved” US jobs, as Obama so oft repeated. Oh, wait a minute. I forgot....Obama has proven himself to be a LIAR!
Again, how was this a good thing for the taxpayers who were fleeced for at least a net $10 billion loss? How did this benefit them? Or the auto industry? Letting GM go bust without government intervention would have meant that other investors would have bought up the assets and either started a new company or other existing, profitable companies would have filled the void and saved the taxpayers $10 billion. This scam obviously didn’t benefit Detroit either. Look where they’re at right now. In the middle of filing bankruptcy themselves.
This was just one big DemoRAT fluster-cuck to steal $10 billion from the US treasury. Legal theft. This administration is a Continuing Criminal Enterprise (CCE) and should be prosecuted for their frauds and crimes. Oh, wait a minute. I forgot....Eric “The Red” Folder would have to initiate that.
I’m not holding my breath.
We are in a continual “love fest” with this $hithead!
So can GM finally go into bankruptcy now?
With that bunch of losers we should be grateful that they only lost 10 billion .... they will eventually lose 50-60 billion on green energy “investments” with taxpayer dollars.
“GM wasnt bailed out. The UAW was bailed out.”
And the bondholders didn’t even get an Obamacare waiver.
GM can still go F themselves.
It’s like everyone has scales over their eyes. I still can’t believe he was elected the first time, never mind the second.
Oh, well. It’s only $10,000,000,000.00.
I like seeing it printed out like that. Too often words like billion and trillion are just kind of thrown around. A million dollars is a lot of money. A thousand million is really a lot of money, and ten of those is REALLY a lot of money.
The federal government took an incredibly lucrative business that was making money hand over fist, and ran it into the ground, LOSING MONEY in a legal brothel!
Amazing, isn't it?
No one is accounting for the money stolen from the real owners of GM.
Just saw a segment on Bloomberg on the new CEO of Chrysler, they sound like Chrysler is strong, and test to guess (she) will go increasingly after electric cars.
I’m interested. She seems like a strong team player. She in large part is also behind the Corvette I believe.
Chrysler is now free of the government. Let’s take another look.
Stiffing the bondholders was the worst crime of all in this terrible and corrupt bailout. I am one of the many decent people who are boycotting NewGM for life. I will not buy a new or used GM, rent a GM, or accept GM parts ever. I don't deal with crooks, and stiffing the rightful claimants on GM assets was unforgivable.
Sorry I mis-spoke.
Barra was in charge of the brand new, z-28.
She’s been at Chrysler her entire career, started there in her teens as an intern. Studied engineering, and even ran a stint at HR, though she is primarly from operations.
I think she’s the second-highest placed female CEO in America now. She is from Michigan and seems strong.
I’m a fan so far.
Welcome back Chrysler.
Me too and I love the Chevy Suburban. Of all the government did, and I hate the bail outs with a passion, stealing from the bondholders was a horrible precedent. What did bondholders do? Are there lawsuits?
Absolutely. Or people should say out loud; “That’s a one after the dollar sign with ten zeros before the decimal point.”