Posted on 07/30/2012 2:48:15 PM PDT by Nachum
Remember that vaunted General Motors recovery ushered in by President Obama’s bold bailout program?
Well, not so much.
In June 2009, GM filed for Obama-managed bankruptcy, costing the taxpayer some $50 billion. The vast majority of that cash was never paid back by GM. In November 2010, GM issued a new initial public offering at a price of $33 per share. Today, GM stock is trading at approximately $19.36, down about 40% from its initial price.
And the executive turmoil in the company is reaching fever pitch. Opel, a majority-owned subsidiary of GM, dumped CEO Karl-Friedrich Stracke about two weeks ago. GM Vice Chairman Steve Girsky replaced him. Analysts immediately claimed, “GM appeared to be panicking as the change comes so soon after a turnaround plan for the struggling Opel was approved and a replacement was not named.” Another analyst stated, “The timing of today’s announcement bodes poorly for the condition of GM’s European business.” Then, Opel’s new design chief Dave Lyon was thrown out of the building before even beginning his job. Within the week, global marketing honcho Joel Ewanick got tossed.
(Excerpt) Read more at breitbart.com ...
I won’t touch GM or Chrysler stock with Obama’s money... After the bail out your investment in either company is at risk of being canceled by an out of control government.
All kidding aside, Obama will be proven to be the real GM crash dummy.
reality can be spun, disguised and denied, but it’s still reality.
Every intelligent person I know, with whom I have discussed this issue, has sworn off Gubmint Motors cars. I’m driving one now, but I bought it a decade ago when I gave a damn about buying American.
Ford stock has gone from 16 to 9 in the same time period.
Does that mean they’ll fail sooner than GM?
Obama's plan...Tax those over $250,000 and give the money to the poor union folks at GM.
Does Ford owe the taxpayers $50 +/- billion?
GM is in real trouble, they’ve been stuffing the dealership chain with months of excess supply and offering what amounts to a sub-prime auto loan for anyone that can fog a mirror. I don’t expect this to end well and anyone dumb enough to have bought the new GM stock or even worse the new GM bonds gets what they deserve, which will most likely be a royal shafting.
What the government did to stock and bond holders of GM taught me never to invest in any corporation that is either too big to fail, has heavy union employee representation or is politically connected (MF Global any one?). You are taking on way more risk than you should in all those cases.
How unexpected! It’s still $19.36 higher than I would pay for a stake in that corrupt company, but it’s a start.
“Ford stock has gone from 16 to 9 in the same time period.
Does that mean they’ll fail sooner than GM?”
As long as the UAW is there, then YES!!!!
It would have been far better if GM had been allowed to go into genuine bankruptcy. But then, we knew that at the time. It was strictly a UAW pumping project.
This catastrophe should be enough reason alone to throw these crooked bastards in the District of Corruption out of office and put into jail.
How many GM Propaganda Pieces (I refuse to call them Commercials) have they shown during The Olympics?
BMW builds cars in my city, Greer, SC. They employ a lot of Americans.
Yes, they are in trouble Trapped_in:_LA....
I can't get into who I was speaking too, boy I wish I could... I brought up the subject of America being Capital Starved. said person brought up something I have been on a screed about here and it shocked me, and that is the destruction of contract law. They then went on to say, why would you invest in Preferred Stock, or a Bond when you have those in power can wave their hand and take your assets/capital and I said "Oh, You mean like GM?" man did the flood gates open.
I speak to people in business, bankers, no one can get commercial paper, the whole system needs an enema because Dodd Frank is clogging it up.
Every one who thinks like us here knows, The business guy I spoke to today about my conversation about GM are waiting for our dear leader to go. They ain't gonna get down to real business until he is gone. The whole Flippin Country is on hold.
I am holding my nose and voting for a better 1st lady in Ann Romney. As the Rabbi says..."the rest is just commentary"..
P.S. I'll say it again, I think GM is head again towards Bankruptcy, but can they stave it off until after November is the question...
If the GOP had any brains or backbone, they would trumpet this 24/7.
As I said, “if.”
Ja aber Opel ist nur Deutschland, und nichts in USA
I predict a second bankruptcy filing on top of the existing filing.
I think the car companies are in real trouble because in the next 10 years, cars are going to become MUCH more expensive (thanks, EPA/Obama, for some long-lasting damage), and kids at this point can’t even IMAGINE buying a new car - because their parents didn’t have one, and they have other interests.
In 20 years, the streets in the US could look a lot like Havana’s.
I don’t think it’s that crazy of an idea to buy a new car now and take care of it, because you are going to be living with it for a while.
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