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Old 05-31-2009, 07:30 PM
 
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FT.com / In depth - GM to file for Chapter 11 protection


The US and Canadian governments would initially own 72.5 per cent of the new GM, with the remaining 17.5 per cent held by a United Auto Workers union healthcare fund. Existing shareholders would be wiped out.
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Old 05-31-2009, 08:11 PM
 
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This really makes me angry!! It's the shareholders and bondholders that need that money the most!! They're real people! Some that depend on the money as a man stream investment. Like the United States government really needs to take a 72.5% stake in them, for what? I mean, yes, they loaned them all of those loans but does the government really want to run auto companies?

The U.A.W. owning a part of G.M. puzzles me, it has since the day that they announced it, but I guess nothing is suprising these days.
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Old 05-31-2009, 08:18 PM
 
975 posts, read 1,631,409 times
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Um, as of friday GM was worth about 600 million. We're giving them 50 billion. My question is why doesn't the US taxpayer own 100%?
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Old 05-31-2009, 08:22 PM
 
14,256 posts, read 16,257,123 times
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Quote:
Originally Posted by Traderx View Post
Um, as of friday GM was worth about 600 million. We're giving them 50 billion. My question is why doesn't the US taxpayer own 100%?
The shareholders and bondholders should be wiped out. That was the risk they took and their failure to change a management that had been failing for years.

It is outrageous that the taxpayer should be pumping $50 billion into GM. The market mechanism should have been allowed to operate and they should have been allowed to go bust. Its not like we don't have a good alternative in the other, better run, car companies.
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Old 05-31-2009, 08:27 PM
 
975 posts, read 1,631,409 times
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Quote:
Originally Posted by Jaggy001 View Post
The shareholders and bondholders should be wiped out. That was the risk they took and their failure to change a management that had been failing for years.

It is outrageous that the taxpayer should be pumping $50 billion into GM. The market mechanism should have been allowed to operate and they should have been allowed to go bust. Its not like we don't have a good alternative in the other, better run, car companies.
I agree the shareholders should be wiped out. Thats the way it works in the real world.

I also agree we shouldn't have bailed them out.

Did you think I was saying something else?

I just can't understand why I'm paying 100x more than this pig is worth and not even getting 100% of the company.
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Old 05-31-2009, 08:38 PM
 
48,508 posts, read 88,732,737 times
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I thnik it should go into full bankrupsy with noraml return as per centage of debtholders.That would the governamnt and bondholders first.SAs uit is we haven't seen teh end to teh cost to taxpayers.UInliike the bnaks these loans would be paid back for decades ;if at all IMO.
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Old 05-31-2009, 08:44 PM
 
Location: State of Superior
8,730 posts, read 14,618,437 times
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GM will stop trading. May not even open on Monday. They should have been shut down already. Just think , a large cap stock , worth less than a penny stock.! Same thing happened with Enron , they let it run , .......even at the end , people were buying , hoping it would come back.

So , invest in a worthless stock .why? If you haven't cashed in by now , its way too late......Will the Government help any of the stock holders , bond holders ? maybe some , but not the little guy , he is screwed........sorry.
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Old 05-31-2009, 09:46 PM
 
14,256 posts, read 16,257,123 times
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Quote:
Originally Posted by Traderx View Post
I agree the shareholders should be wiped out. Thats the way it works in the real world.

I also agree we shouldn't have bailed them out.

Did you think I was saying something else?

I just can't understand why I'm paying 100x more than this pig is worth and not even getting 100% of the company.
Nope, I agree with you.
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Old 05-31-2009, 09:50 PM
 
Location: Warwick, RI
3,692 posts, read 4,560,439 times
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Quote:
but does the government really want to run auto companies?
Run them, no. Control them, yes.

I also agree that they should have been allowed to go under from the start. The US Government has no business whatsoever throwing away billions in tax payers money on a company that should have under bust years ago.
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Old 05-31-2009, 10:02 PM
 
4,711 posts, read 11,511,988 times
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GM doesn't have a prayer with the 535 A-holes on Capitol Hill running it.

It will be a captive company that sells cars at a loss. Similar to AmTrak.
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