Tuesday, July 31, 2012

GM Stock Hits New Low

In June 2009, GM filed for Obama-managed bankruptcy, costing the government some $50 billion. The vast majority of that cash was never paid back by GM. In November 2010, GM issued a new initial public offering at a price of $33 per share. Today, GM stock is trading at approximately $19.36, down about 40% from its initial price.

Says Beitbart:
Remember that big GM boom? It’s a lie. Obama may have bailed out GM, but he didn’t bail out the taxpayer – and in the long run, GM won’t be a viable business just because the government cut it a check.


  1. There was a link on Drudge the other to a write showing GM is juicing their not so great sales with "sub-prime" auto loans too.

    LOL...I have a business that almost went out of business when the auto crisis hit in 07' because we were tied in so closely...when GM got bailed out I knew it would never make a profit again and told a friend that who thought I was a big ass for saying it.(the American auto industry click is like a wounded savage animal right now...even if you're in it-if you dare to say anything negative get ready for serious lumps coming your way)

    I think the hardest thing I had to do was write a letter to my congressman asking him not to vote for TARP, and then doing it again for the GM bailout only to get back a "form" letter saying "sorry, I'm voting for them" while my own business was going down the tubes. That was back when I thought I could have an impact on politics.

    Only a GSE could do sub prime auto loans in this environment, even further...any "profit" they've shown in any quarter is simply bookkeeping(nor real or sustainable)...I can't even count how many times they've declared a good quarter since the gov't takeover only to have the figures revised later that year.

    It's one big excersize in moral hazard between the screwing of GM bondholders and the taxpayer bailout.

    I find it an almost a perfect example of every flaw in the American "modern" economy.

    Especially when you add in the Union patronage throwing around political weight.

    1. And don't forget that GM also has the benefit of the tremendous loss carry forwards that weren't lost in the sham bankruptcy to lower its revenue; therefore juicing their "net income" to the tune of billions of dollars.

      Like Tyler Durden says "Martha's polishing the brass on the Titanic. It's all going down, man."


  2. Government Motors,...government everything. It's all crap, the markets, the banks, the schools, everything buffed up with lies by crooks. Look at our society, the streets are littered with zombies made by the government.

  3. Kaus asks what the heck is happening with multiple GM execs being walked out