Skip to comments.Obama:our policy saved GM
Posted on 11/18/2010 2:52:50 PM PST by Huskrrrr
President Barack Obama on Thursday celebrated the return of a reborn General Motors to the U.S. stock market, saying it shows some of the "tough decisions that we made" during the recession are payingoff.
(Excerpt) Read more at news.yahoo.com ...
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What took him so long? I thought he would have been on TV ringing the opening bell.
Bullshit. For the first time in the American history, US courts stripped secured creditors of their collateral stake in a US business to sate the demands of an unsecured creditor, in this instance, the unions.
More than that, this administration stole from the American taxpayer to give directly (in the form of ownership equity) to a union. Where does this end? How many other business will be nationalized under some guise of "emergency" to strip owners of the equity, and then to repatriate that equity to political allies.
GM "bailout" was one of the darkest events in the history of the Republic. The government under color of law stole from American citizens to reward political allies. It's sickening.
Ding, Ding, Ding...Winner Winner Chicken Dinner.
I had a very interesting conversation with my auto gnome who does not work for the two mentioned :-).
In our discussion I noted, we do not know what the real balance sheet is because in essence they have been privately held for almost 2 years and are they really keeping the books to GAAP standards? What are they doing with all the debt? i.e. they have to show it in a real accounting fashion now.
Also, now they have to conform to Sarbanes Oxley, if the books are cooked the CEO goes to "da bigga house". Serious as a heart attack. At somepoint we will find the real Asset Value of Gm and it may be way below this vaulted 50 billion.....
He wanted SO badly to say "my policy..."
He is a POS liar his ‘policies’ aka mob slush fund paid them off for all of the campaign cash he got from them.
I agree completely...it was government sponsored theft. As an attorney, it made me sick to my stomach.
Amen to that. The originial shareholders are screwed, as are the taxpayers, while the unions get the wealth redistribution. What a great program Obama. Sheesh!
The leftist media is gushing about the tremendous success this IPO was. The AP article conspicuously fails to mention that the stock opened at 35 and sank steadily throughout the whole day,closing at 34.09. Thus almost everyone who bought the stock on the open market today lost money.
To me, this was a really awful first day performance of a supposedly hot IPO, and doesn’t seem to bode too well for the stock in the coming days.
Isn't there a federal program that bails out defunct pension plans at a discounted rate? If GM had gone bankrupt the taxpayer would have been liable to provide some assistance to the bankrupt pension plans. So the 5 billion or so giveaway to the unions by the feds was probably what they would have owed either way.
Now the out and out theft from the bond holders and maybe the stockholders if anything was left was absolutely criminal and the next republican administration should revisit this abomination.
It had a straight line sinking trajectory (against the upward tide of the overall market, IIRC) for over the last half of the trading day.
If you bought GM, this is what you absolutely do not want to see.
A lot of investors will joining the "pull back" before it becomes a swan dive, IMHO.
(Note, I'm not a broker and I don't give investment advice. Do your own dd before making stock market moves.)
I understand what you're saying, but remember that they split GM into two companies - the one that had an IPO today, and the other one that was riddled with debt. The US taxpayer assumed that company and it's debt. That wasn't $5 billion, that was something well north of $50B. They'll recoup some of that today, and in the future, but they wont' recoup all of it, ever.
Essentially, the US taxpayer is eating whatever is left, plus the $5B (is it a little more than that?) equity stake. I'd have to do the math on paper, but I'm pretty confident that the way they've done it is costing taxpayers much more than any exposure they had from pension guarantee programs.
I agree though, this should be - IMHO - investigation number one when the gavel falls on the new Congress.
The 5 billion was only the unions share of the stimulus money that was given to GM so that it could pay us back for some of the money that they owed us. That does not include the "investment" we have in GM. That will probably be another 10 or 20 billion loser, depending on how the stock deals work out.
Just for kicks...FedGov owned 60.8% of GM before today. After today, if I understand correctly, they will only have a 37% equity stake in the company. The problem is they only raised $11.8B (ish). Just doing the math in my head, they are going to fall woefully short of recouping their original "investment" of $42B, unless the GM stock price rises, exponentially. I'm not holding my breath.
Well, the media told us he was like Lincoln. Sort of.
And I’m boycotting them.
Hasn’t GM been given a pass on paying several BILLION in income taxes?
I was at a Ford dealership last week and saw this shirt for sale in the service and parts cashier's office:
I bought two. :-) The ladies in the office there told me that the shirts are going fast.
For the Chinese.
Yes, we know...