For Americans To Get Their Back From GM The Company Will Have To Be Worth More Than Ever Before
Making Obama’s decision to put billions of our tax dollars into bailing out General Motors what most reasonable people call a “bad investment.”
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 don’t know how much we’re going to recover,” a senior Obama administration official said as the company headed into bankruptcy last month.
This uncertainty stems from the difficulty in valuing the 60 percent GM stake that the United States will receive in exchange for the public investment. The government also gets preferred shares and other compensation.
The stake will be worth enough to fully cover the government’s direct investment only if GM’s stock rises above $68 billion. Even at its recent 2000 peak, GM’s stock was worth only $56 billion.
By the way, none of this takes into account the billions spent by our government bailing out GM’s finance company GMAC. And by the way, remember that when Obama was selling this boondoggle to the American people he said he was doing it to protect us:
In announcing the government’s intention to put another $30 billion into the company earlier this month, President Obama 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.”
He’s lying. Americans aren’t being protected. They’re being fleeced to keep General Motors (among others) on life support so that Obama’s buddies in the UAW can keep feeding on their host body.
