Will Obama Motors Go Bankrupt Again?
Forbes says yes. According to Forbes, the "federal government owns
500,000,000 shares of GM, or about 26% of the company. It would need to get
about $53.00/share for these to break even on the bailout, but the stock closed
at only $20.21/share on Tuesday. This left the government holding $10.1 billion
worth of stock, and sitting on an unrealized loss of $16.4 billion."
| And apparently, there is even more bad news. Forbes also points out that GM stock has lost 39% of it's value since going public again while the Dow Jones Industrial Average (DJIA) is up 20%. |
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In other words, GM has lost just under 50% of its value relative to the DJIA.
At present, Uncle Sugar holds slightly over $10 billion dollars in GM stock and
would leave the American taxpayer on the hook for over $16 billion dollars if
the government sold all of its shares right now. |
With a huge profit loss and still having to pay back the taxpayers GM has to build it's cars on the cheap with inferior parts. It's a no brainer. Everything Obama touches turns to sh*t. Buying GM right now with Obama and one of his dumb czars at the helm would be trip driving to lemonland. GM is a goner for both it's greed and management stupidity. Too bad, my pre Obama Chevys are real runners but it's time to replace the one which is 17 years old and it won't be a Government Motors car.
ReplyDeleteMy 2010 Cadillac SRX is one of the best cars that I have ever owned (and I have over 40,000 miles on it already). I, for one, and glad that GM and Cadillac are still around, and I am sure that thousands of American job-holders are also glad.
ReplyDeleteIf the Obama administration had allowed GM to disappear, you would be railing all over him for allowing an American iconic brand to vanish. No matter what he does, you are going to complain about it.
ReplyDeleteAnd your suggestion that GM will go bankrupt again is without merit. Its stock price may not be high enough to garner a profit to its investors (yet), but its operations have been profitable of late, and its autos are by far the best they have ever been.
Why don't you just take away the conext ruse and simply say it like it is: "We hate Obama and everything he does."