Posted on 06/11/2012 9:46:53 PM PDT by what's up
Mitt Romney plans to shed the governments stake in General Motors if he wins the presidency, even if it means taking a loss, the presumptive GOP nominee told the Detroit News.
(Excerpt) Read more at blogs.wsj.com ...
The government resold GM stock at 10 dollars less a share after they took over and called that a ‘success’. Good for Romney.
I agree the government should get out of GM, but why lose the $16 billion. Why can’t GM just buy back those shares over the next 10 - 15 years?
The proceeds should be given to the bond holders that were screwed over by Zero.
If Romnets elected, I would short GM stock
Yep.
It doesn’t matter, the fact is the Chrysler bailout set the precedent that the government was now expected to save companies, and decide the winners and losers in the marketplace.
The mechanism for "bailing-out" was a loan guarantee.
Chrysler paid back the banks without the government (i.e., taxpayers) ever having to pony up a penny.
I believe those figures were before the IPO.
Here is the current opwnership:
GM Ownership
http://www.gminthemedia.com/2012/03/21/who-owns-gm-stock/
The US, after the IPO now is at 32%...some quore as low as 26%.
Saudi and China are in that 44.9% individual and institutional owners.
But their numbers are way down from when the IPO was let. The stock has lost something like 25% or more since then and I believe they have been dumping it. However, one Saudi Prince alone still owns 1% of the stock by his lonmesome, Prince Walid bin Talal, who bought 500 million in shares during the IPO and has held onto it.
YThese days it is exceedingly difficult to find out exactly how much Saaudi Arabia and China own.
I believe those figures were before the IPO.
Here is the current opwnership:
GM Ownership
http://www.gminthemedia.com/2012/03/21/who-owns-gm-stock/
The US, after the IPO now is at 32%...some quote as low as 26%.
Saudi and China are in that 44.9% individual and institutional owners.
But their numbers are way down from when the IPO was let. The stock has lost something like 25% or more since then and I believe they have been dumping it. However, one Saudi Prince alone still owns 1% of the stock by his lonmesome, Prince Walid bin Talal, who bought 500 million in shares during the IPO and has held onto it.
These days it is exceedingly difficult to find out exactly how much Saaudi Arabia and China own.
At the time, Chrysler was a critical defense contractor. They were our only manufacturer of main battle tanks, among other things. The ‘bailout’ was in loan guarantees so the taxpayer didn’t have to pay anything out, Chrysler presented a viable recovery plan - and most important, as part of the bailout agreement, Chrysler had to sell off all of their defense industries so that if the plan failed the country wouldn’t lose a critical defense supply.
Just a start, how about in the same week shed AMTRAK, Fannie and Freddie and any other GSE that we don't need.
How is this playing in Michigan? I’m thinking Romney might carry The Wolverine State. Whaddya think FReepers?
Personally, I think Romney's plan of disentangling the government from GM presents the best possibility for this company to actually have a chance to recover. If I were running GM, I would pick the best few products I had, push the unions extremely hard, and market the company and its products as ‘Private and Free in America’.
A pledge of one's credit is has tangible value. If you co-sign an auto loan for your son, he can borrow on more favorable terms. If the government co-signs, (at least back in the 70's) more favorable still. But when you co-sign, it impairs your credit rating and you must make future loans on less favorable terms.
“Mitt Romney plans to shed the governments stake in General Motors if he wins the presidency, even if it means taking a loss,”
Spoken like a good liberal. What is wrong with disposing of the stock at cost, or even a profit.
Personally I’ll never buy another GM product.
DO NOT DRINK THE GOP KOOLAIDE or the Dem Koolaide is all I can say. I will NOT vote for him, as I don't drink either parties Koolaide
The loss already exists. It’s just a matter of recognizing that fact.
Because you can’t. You invested in a losing stock and when you sell the stock you take the loss. It’s called the free market and Romney is right, get out of the market.
Pray for America
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.