The Way It Is, Like It Or Not...
To quote Lando Calrissian, this deal’s getting worse all the time.
General Motors (GM) shares fell to a fresh 2012 closing low of 19.57 on Monday. The stock hit 19 in mid-December, the lowest since the auto giant came public at $33 in November 2010 following its June 2009 bankruptcy.
Normally you might say, tough luck investors. But this is Government Motors. The Treasury still owns 26.5% of GM, or 500 million shares. Taxpayers are still out $26.4 billion in direct aid. Shares would have to hit $53 for the government to break even.
Those shares were worth about $9.8 billion as of Monday. That would leave taxpayers with a loss of $16.6 billion.
I’ve been saying this for years, and yet no one seems to listen. Here it is in bold, for the stupid:
We. Will. Never. Recoup. Our. Money. From. Bailing. Out. G. M.
I wrote a series of articles on the old site including one very detailed analysis (scroll down to the GM Is Delusional piece) of what would happen after a friend of mine posted about their profits on Facebook and said that it was great that we bailed out GM and look how they turned things around, completely ignoring (and by ignoring I mean being ignorant of) the reality of how screwed taxpayers were.
Of course she’s a card-carrying hardcore liberal Democrat, so the truth about the bailout is, at best, inconvenient.