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Every article written about this sell uses words like ;Potentially, Likely, or may lose money.
I think the fat lady hasn't sung yet on this deal. Maybe we'll know in 15 months.
Do you really think GM is going to go up to $53/share anytime soon ?
That's the break even price.
We don't need the fat lady for this transaction my friend.
They just won't admit they're selling at a loss.
Every article written about this sell uses words like ;Potentially, Likely, or may lose money.
I think the fat lady hasn't sung yet on this deal. Maybe we'll know in 15 months.
Did you read the link?
They have already agreed to sell 200 million shares at $27.50. So no, it's not speculation. It's a loss.
Thanks Mr Obama, for taking our hard earned tax dollars and giving them to GM so your union buddies (voters) can keep their cushy jobs.
The plan the U.S. announced today to sell its remaining 500 million shares of General Motors virtually guarantees a substantial taxpayer loss on the $49.5 billion bailout.
The Treasury Department today said that it will sell all its stock in GM within 12 to 15 months and sell 40% of its stake within weeks, starting with a $5.5 billion deal for GM to buy back 200 million of its shares as soon as next month at $27.50 per share.
The government would have needed about $53 per share for its 26% stake to break even on the bailout. The deal negotiated with GM for the 200 million shares will cut the U.S. stake to 19% but raise the price needed to break even on the remaining 300 million government shares to nearly $70.
Thanks Mr Obama, for taking our hard earned tax dollars and giving them to GM so your union buddies (voters) can keep their cushy jobs.
The plan the U.S. announced today to sell its remaining 500 million shares of General Motors virtually guarantees a substantial taxpayer loss on the $49.5 billion bailout.
The Treasury Department today said that it will sell all its stock in GM within 12 to 15 months and sell 40% of its stake within weeks, starting with a $5.5 billion deal for GM to buy back 200 million of its shares as soon as next month at $27.50 per share.
The government would have needed about $53 per share for its 26% stake to break even on the bailout. The deal negotiated with GM for the 200 million shares will cut the U.S. stake to 19% but raise the price needed to break even on the remaining 300 million government shares to nearly $70.
These idiots are crying about the sequester when we tossed 1.3 billion into a trash can and nobody cares........
"The potential loss on the GM bailout is likely to dwarf the estimated $1.3 billion loss the government took on the bankruptcy rescue of Chrysler Group and the transfer to Fiat control."
Then there is the real reason they are dumping the stock..........
"The government plans to immediately remove some restrictions it placed on GM as part of the bailout using TARP funds. The company now will be allowed to buy corporate aircraft, for example."
Where are all the liberals crying about the evil CEO's?? Now they can buy airplanes with our tax money.
While no one is happy the U.S. is selling at a loss, the alternative to a bailout would have been much more expensive and damaging to the economy.
The purpose of the bailout was to prevent the company from going bankrupt. It failed, GM still went through bankruptcy...with 30 billion in taxpayer's dollars in the mix. They went through an illegal one, unique in the nation, where normal, established bankruptcy laws were ignored, in order to provide a sweetheart deal for the UAW. And where shareholders were scr*wed out of their holdings.
My question is, why didn't companies like Honda needed a bail out, given that they do have factories in the USA...
And Ford.
Because they are better managed companies.
Failures like GM should be allowed to fail.
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