Posted on 12/26/2012 8:48:45 AM PST by jazusamo
Administration puts an expensive end to a disgraceful episode
General Motors will no longer be “Government Motors.” The Treasury Department on Wednesday announced its intention to liquidate federal holdings in the automobile company over the next 15 months. The final tally will show this policy has been a disaster for taxpayers.
Under the best case scenario, the public will wind up shelling out more than $13 billion by the close of this unfortunate episode. Though President Obama has portrayed the GM bailout as saving Detroit, it was really a reward for the auto unions. It was a celebration of bad management that steamrolled the rights of creditors. It was precisely the sort of thing that ought never happen in an economy based on free exchange.
In the aftermath of the financial meltdown four years ago, Congress created the Troubled Asset Relief Program (TARP) to bail out several of the big-name Wall Street firms. Uncle Sam created a similar program to funnel almost $50 billion to “save” GM. This allowed GM to bypass much of the traditional bankruptcy process, which is designed to permit a struggling business to reorganize in an orderly fashion. Avoiding bankruptcy preserved the lavish union contracts largely responsible for sending the company over the edge in the first place. As part of the bailout deal, Uncle Sam grabbed a 60 percent ownership stake in GM...
(Excerpt) Read more at washingtontimes.com ...
The company is still in need of Chapter 11 process, in order to trim off all of the union fat and junk that keep it from competing.
Will Obama allow nature to take its course in order for GM to cleanse itself?
won’t be long and GM will be back in bankruptcy again anyways.
I won’t touch their stocks at a penny a share.
If just one person who thinks he’s smarter than everyone else would admit “I was wrong. I thought GM paid off the loans. But they didn’t. So, obama’s NOT the greatest president in history after all”, I’d have some hope. But that won’t happen because all liberals will never admit they were wrong.
Yep, it’s been “a disaster” for taxpayers indeed. And as well for stockholders, ( I lost 2,000 shares which was a lot of money for me) bond holders, nonunion GM employees, dealerships, all Delphi employees and other suppliers. UAW employees were the only ones to come out good on this caper.
The only problem is the Bankruptcy Judge is on the verge of UNWINDING this whole fiasco for being LIED to by GM and the Government Lawyers. It aint over yet. I hope he does and then IMPRISONS ALL THE LAWYERS in this case.
Exactly, and Obama backed them all the way.
Well written article, but it is a re-hash of old news. Re-distributing wealth means “ cash for my buddies”.
It would be beautiful if the judge reverses his ruling.
He should be making that decision soon but I don’t have high hopes for a reversal.
Are you recommending a short or put options?
It’s trading at 27 now with about $20 in cash per sh on hand.
If Baraq and the Chicago mob can roll SC justices, don’t expect any independence in bankruptcy court.
“General Motors will no longer be “Government Motors.””
I believe General Motors will ALWAYS be “Government Motors” heretofore. A name they will never shake.
I don’t follow GM stock. So I am not the guy to ask.
Agreed...It’ll sure always be “Government Motors” to me.
And like everything else in the ObamaDORK administration, they lost us a lot of money with absolutely nothing to show for it.
We should learn...keep liberals away from 1) science, 2) social issues, 3) economics, 4) the military.....er...belay that-—keep them in cages where they belong and re-feed them the bull-Obama they’ve been shoving down our throats.
Oh, and legislate that Obama”care” goes ONLY to them....I will enjoy watching them die in pain.
As with assigning John F-in' Kerry to State, millions of homes on the banks books, real unemployment > 16%, bazillions now on food stamps, Medicare and Disability, Obama's 2nd term maybe one crisis after another with no viable solution for any of them. At some-point even his sycophant press cannot carry his water, especially if things come unglued internationally with J. F-in' Kerry in control and we potentially devolve into some financial crisis.
As GWB said, this guy ain't got the chops for the job, and unless they pull a Justice Roberts on this Judge, and he rules the whole GM new-bankruptcy paradigm of the total destruction of contract law cannot stand, one may ask is this the tipping point for Obama as people start feeling the hangover from all his free drinks that his very bad bartending has foisted on all of us...
Ping for later.
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