Government Motors Headed for Bankruptcy, Again!

Obama – the man with the anti-Midas Touch:

Obama's Government Motors Limo

Obama’s Government Motors Limo

General Motors Is Headed For Bankruptcy — Again
Louis Woodhill – Forbes

President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, 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.

Right now, the government’s GM stock is worth about 39% less than it was on November 17, 2010, when the company went public at $33.00/share. However, during the intervening time, the Dow Jones Industrial Average has risen by almost 20%, so GM shares have lost 49% of their value relative to the Dow.

It’s doubtful that the Obama administration would attempt to sell off the government’s massive position in GM while the stock price is falling. It would be too embarrassing politically. Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.

GM is unlikely to hit the wall before the election, but, given current trends, the company could easily do so again before the end of a second Obama term.

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Explore posts in the same categories: business, Obama Sucks, politics

6 Comments on “Government Motors Headed for Bankruptcy, Again!”

  1. tgusa Says:

    Look what these idiots have done to their own industry. And now, they want to make cars that run on corn. What could possibly go wrong? These people are really something else.

  2. Big Frank Says:

    To use a food crop for fuel is a crime against humanity. The poorest in Central and South America depend on corn for sustenance , the liberal ‘Green’ bozos while allegedly ‘saving’he planet from the horrors of those evil ‘fossil’ fuels, are in fact starving the poorest of the poor.

    • tgusa Says:

      I guess they want us to disregard 40 years of feed the starving world conditioning. I suppose we wont be seeing musicians performing concerts for the drought and famine ridden regions of the world. What a relief. I will have to say, the modern movie industry deserves a lifetime achievement academy award for bs in film. I wish they would make up their minds.

  3. Big Frank Says:

    The GM bailout was our ‘Dear Leader’s; pandering to the UAW, they got bailed out. DemocRATS will stop at nothing to stay in power. The bond holders got a big fat zero, and the unfortunate non union workers at their suppliers got reduced or no pensions at all.

  4. Stoney Says:

    When your goal is Agenda 21, your goal is to reduce the human population by 80%. Diverting food crops is just one of many ways to do that. So’s controlling health care. So are bloody wars in one place after another.
    I could go on and on…


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