Posted on 06/30/2009 9:24:08 AM PDT by AngelesCrestHighway
If a new General Motors emerges from bankruptcy as planned, U.S. financial aid for the company will expand to nearly $50 billion, but neither the government nor the company is forecasting how much of the public money will be repaid. It's sure to be a stretch. For the United States to fully recover its investment, the value of General Motors stock will have to reach levels it has never before attained. "I'm not going to predict it -- that's not my job today," GM chief executive Fritz Henderson said in a recent interview. "I don't know how much we're going to recover," a senior Obama administration official said as the company headed into bankruptcy last month.
(Excerpt) Read more at washingtonpost.com ...
Barry said: "We're making these investments not because I want to spend the American people's tax dollars, but because I want to protect them."
Barry is protecting us and the UAW!
50 billion taxpayer dollars to avoid a GM bankruptcy. What a piece of work that was.
GM and Chrysler will not exist in 5 years. In the meantime they will suck the taxpayers’ wallet dry.
There is no uncertainty. Anyone sane knows exactly how much of our "investment" will be recovered: 100% by the UAW, 0% by the taxpayers.
No matter how much of our money the gov’t gives GM/Chrysler, they can’t create a market for cars that isn’t currently there. Too many automakers going after the same shrunken market. We should have just let the weakest go away.
Instead, we’ll subsidize the weakest to keep them afloat, which is grossly unfair to the other automakers.
The stock of GM should be for sale just as soon as it comes out of bankruptcy. This is the only way the taxpayer will know the value of their “investment”. It is likely to be ugly, but it is better to know the truth. If they don’t do this..it will just become a sink hole with more taxpayer funds going to bail out the UAW.
This presumes the company can even show a profit by 2012. And even if it does, it's profit and/or P/E ratio would have to be astronomical for it to have a market cap anywhere near $70 bil.
This deal was made to benefit the UAW and no one else IMHO.
Well, 17% at least (I think thats how much of the company they got).
But, hey! On the bright side, I'm certainly the other unions out there have VERY high powered legal firms studying how they can force their companies into bankruptcy so the union can end up owning it, just like the UAW and GM!!
BOY, DID UNION BACKING OF OBAMA AND THE DEMS PAY OFF BIG TIME!!!
As much taxpayer money as necessary will be dumped into that company to line the unions coffers and make that company appear profitable as is necessary!
Money is no object when you live in the govt pocket!!!
The NUMMI plant in Fremont, California, where both Toyotas and GM cars have been made for a number of years is facing the withdrawal of all GM vehicles.
Government Motors will not sell many cars in the coming years, IMO.
Government Motors will not sell many cars in the coming years, IMO.
I agree...It’s just another case of Obama telling the taxpayer to grap his ankles....
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