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Government Motors: As GM shares near record low, taxpayer loss on bailout rises to $35 billion

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posted on Jul, 3 2012 @ 10:01 AM
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With all the U.S. Government investment in GM, the stock price needs to be around $53 to "get even" according to an article from Investor's Business Daily.

And as of Monday, the USA is stuck around $35 billion !!


Do we have business people in the White House ?


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.
USA-GM


Is this all true ?




posted on Jul, 3 2012 @ 10:17 AM
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reply to post by xuenchen
 


Good, I hope more companies get more bailouts and they liquidate the United States. Then you people will finally realize!



posted on Jul, 3 2012 @ 10:22 AM
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Well, now that scotus has decided that we can be taxed for not participating in a government required transaction, how long until we are all required to purchase gm vehicles? If they can require us to purchase one product, they can require the purchase of any product. The precedent has been set. Buy a GM or pay a "tax" for failing to do so.



posted on Jul, 3 2012 @ 10:27 AM
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They should not have bailed GM out. I have been against car company bailouts since our government let American Motors fail and then lent a billion to Chrysler. AMC was by far the better company. It had innovative styling and a proven track record of selling good cars. Chrysler on the other hand has NEVER made a decent car and to this day manufactures junk. I know, I own one and wish I did not.

Companies that screw up deserve to fail. My company failed last month. After 18 years I got into a spot where I did not have the capital to repair a sudden breakdown and it all went away. I did not get a bailout. Neither should anyone else. To do otherwise is just communism.



posted on Jul, 3 2012 @ 10:36 AM
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Maybe he will realize that his plan isn't actually working. Always the same song and dance about rationalizing pay as a company does poorly.

GM’s CEO Pay Gripe: $7.7 Million Isn’t Enough

Are CEOs the only ones who do not see a disconnect when they average 280 times the pay that the average worker makes. I suppose this guy is hurt because he is on the lower end of the scale.



posted on Jul, 3 2012 @ 10:37 AM
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Even if it is true it does not matter. The only time the stock price for GM matters to the Government is when it decides to sell the stock off. This is part of what is wrong with conservatives, investors and the business elite to begin with. They no longer invest for the long term, well guess what the Government invested in GM for the long term so today's stock price does not matter.



posted on Jul, 3 2012 @ 11:30 AM
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If the government isnt selling off shares, then they havent realized a loss. Just a few months ago, the headlines were about GM's record profits and how the government had made a good investment. This is how the market goes:

money.cnn.com...

GM posts record profit 2 years after bankruptcy



Overall, GM reported full-year net income attributed to common shareholders of $7.6 billion, which comes to $4.58 a share. That's up from the $4.6 billion it earned in 2010.



posted on Jul, 3 2012 @ 11:33 AM
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But, Obama gave a huge portion of the company to the unions... didn't you hear!? GM is a POS company with a POS product run by a bunch of POS's. Odumbass came in and thought that his magical "midas" mack-daddy touch would make it all better. Seems like he's got that anti-midas touch - everything he touches turns into a complete POS - and the tax-payers foot the bill! Hand this asshat his walking papers in November, PLEASE!!!



posted on Jul, 3 2012 @ 12:03 PM
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Do we have business people in the White House ?


No only lawyers.

I see China buying GM they tried to buy the hummer line but think that feel through which is one way to shift the burden of cost and make some money back.

$35 billion pocket change,.



posted on Jul, 3 2012 @ 12:52 PM
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The bailout was for the 1% who had GM on its hands. The loss is for the public.



posted on Jul, 3 2012 @ 02:00 PM
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I wonder if we can be forced as citizens to purchase individual shares now?

We can be taxed if we don't comply.

Sorry, Muerte. I rushed in my response.

edit on 3-7-2012 by spinalremain because: (no reason given)



posted on Jul, 3 2012 @ 02:05 PM
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Originally posted by neo96


I see China buying GM they tried to buy the hummer line but think that feel through which is one way to shift the burden of cost and make some money back.

$35 billion pocket change,.


Wait, didn't that already happen? When the Feds couldn't unload the stock onto anyone else, didn't China pick it up, or at least a portion of it?

"Inside The Deal To Sell GM to China’s SAIC" (April 2011)

blogs.motortrend.com...



posted on Jul, 3 2012 @ 02:19 PM
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Originally posted by Ookie
They should not have bailed GM out. I have been against car company bailouts since our government let American Motors fail and then lent a billion to Chrysler. AMC was by far the better company. It had innovative styling and a proven track record of selling good cars. Chrysler on the other hand has NEVER made a decent car and to this day manufactures junk. I know, I own one and wish I did not.

Companies that screw up deserve to fail. My company failed last month. After 18 years I got into a spot where I did not have the capital to repair a sudden breakdown and it all went away. I did not get a bailout. Neither should anyone else. To do otherwise is just communism.


Your right.. It needs to be like it was years ago. Make a better product, Keep up with your market, and compete or go under. Companies now have lost that. No one wants to work for it. I have always owned Fords and currently own one and i was very proud of Ford for not taking the bail out. Instead they started making nice cars and they brought back the Fiesta with the intention of making a cheap entry level car to hook people and to try and create brand loyalty. They didnt build a overpriced comaro or overpriced challenger. The Mustang was cheaper than both of those cars. Ford did it right. Make a good product, advertise well and cater to your audience, not your whims. And DO NOT stand there with your hand out.



posted on Jul, 3 2012 @ 02:32 PM
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Originally posted by Deetermined

Originally posted by neo96


I see China buying GM they tried to buy the hummer line but think that feel through which is one way to shift the burden of cost and make some money back.

$35 billion pocket change,.


Wait, didn't that already happen? When the Feds couldn't unload the stock onto anyone else, didn't China pick it up, or at least a portion of it?

"Inside The Deal To Sell GM to China’s SAIC" (April 2011)

blogs.motortrend.com...



I do know that GM now has like 4 manufacturing facilities over in China.



posted on Jul, 3 2012 @ 02:36 PM
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reply to post by Deetermined
 



“Shanghai Automotive Industry Corporation (SAIC) and General Motors (NYSE: GM) are announcing today that an agreement has been reached with the governments of the United States and Canada that will allow SAIC to purchase the shares of GM owned by the respective governments. The sale is expected to be completed by this time next year pending approval from U.S., Canadian and Chinese government regulators.” Read more: blogs.motortrend.com...


I totally missed this "news".


Should the respective governments sign off on this deal, SAIC will take a 36-percent stake in GM (SAIC already bought a one-percent stake in GM during the company’s IPO), a controlling interest. In effect, GM will be owned and under the control of SAIC, which will make combined company far and away the world’s largest automaker by volume. It goes deeper than that, though. SAIC is owned and controlled by the Chinese Government. If this deal goes through, GM will essentially be sold to the government of China. How could our government let this happen? As is so often the case, it’s all about the money. Read more: blogs.motortrend.com...


Gives new meaning to the word Government Motors the stink of that deal is will the taxpayer be paid back?

Nope.



posted on Jul, 3 2012 @ 03:45 PM
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reply to post by neo96
 


In the meanwhile, it looks like GM gave Shanghai Motors control over their long standing joint venture (Shanghai GM) for some cash back in 2009, which GM is trying to get back.


SHANGHAI—General Motors Co. GM +5.62% and its big Chinese partner, Shanghai Automotive Industry Corp., agreed to restructure their joint venture to give GM equal say in key decisions as their alliance moves to expand outside China, GM Chief Executive Dan Akerson said.

General Motors and its main Chinese partner, Shanghai Automotive Industry, agreed to restructure their joint venture to give GM equal say in key decisions. Gary McWilliams has details on The News Hub. Photo: Bloomberg.

SAIC currently controls 51% of its long-standing joint venture with GM, which started out as a 50-50 alliance. But in 2009, shortly before it sought bankruptcy protection, GM agreed to give SAIC majority control in return for help with a loan and some cash.

Under a deal that is awaiting Chinese government approvals, GM would regain more sway in the venture's future direction and safeguard the status of its increasingly critical Chinese operations against the risk of doing business in the highly regulated nation. SAIC also would retain its ability to book the joint venture's revenue under recently enacted Chinese accounting rules requiring a 51% stake to claim revenue.


online.wsj.com...


Under more recent news...

"China's SAIC sets up shop in suburban Detroit"


BIRMINGHAM, Mich., June 27, 2012 /PRNewswire/ -- Shanghai Automotive Industries Corporation USA, Inc. (SAIC USA) recently unveiled their new North American Operations Center in Birmingham, Michigan, marking an important step in creating a stronger connection between the US and Chinese automotive industries. With the increasing importance of cooperation between the major global automotive markets, this move by SAIC to strengthen its US presence is significant.



The totally refurbished 30,000 square foot three story SAIC USA Building in the Detroit suburb of Birmingham, MI will eventually house nearly 100 people and will focus on three main areas of SAIC USA's automotive business: Purchasing . . . sourcing and purchasing of automotive parts, materials and components working with almost 150 different North American suppliers. Logistics . . . the export and import of automotive parts and components. Technology and Engineering . . . design, engineering and quality control for development and production of vehicle parts and components.


www.autoblog.com...

Looks like China is planning on taking over the complete automotive industry....parts, supplies and all.
edit on 3-7-2012 by Deetermined because: (no reason given)



posted on Jul, 3 2012 @ 03:50 PM
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reply to post by xuenchen
 


Uhhh...Did IBD just pick the low-point of the stock over the past few years and then declare the US stuck with 35B?

You do realize that the US Gov..like any rational investor...doesn't wait for the stock to drop and then sell? No one is stuck with anything. The stock dropped. Are we "stuck with profits" when it rises again since we are claiming the 35B loss already?

Or are we just ignoring rational thought cuz we get to shout about GM and politics?



posted on Jul, 3 2012 @ 04:02 PM
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Originally posted by Indigo5
reply to post by xuenchen
 


Uhhh...Did IBD just pick the low-point of the stock over the past few years and then declare the US stuck with 35B?

You do realize that the US Gov..like any rational investor...doesn't wait for the stock to drop and then sell? No one is stuck with anything. The stock dropped. Are we "stuck with profits" when it rises again since we are claiming the 35B loss already?

Or are we just ignoring rational thought cuz we get to shout about GM and politics?


No but the point is when is it going up? Why hasnt the bail out helped GM? They are still in the gutter and more than likely yes the government is stuck with those stocks because they may never go up. How long do they sit on them? Till they are down to $6? Do you not see the trend here?



posted on Jul, 3 2012 @ 04:47 PM
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Originally posted by TheTardis


No but the point is when is it going up? Why hasnt the bail out helped GM? They are still in the gutter and more than likely yes the government is stuck with those stocks because they may never go up. How long do they sit on them? Till they are down to $6? Do you not see the trend here?


So, again, you miss this headline just a few months ago?:


Overall, GM reported full-year net income attributed to common shareholders of $7.6 billion, which comes to $4.58 a share. That's up from the $4.6 billion it earned in 2010.


GM posts record profit 2 years after bankruptcy
edit on 3-7-2012 by stanguilles7 because: (no reason given)



posted on Jul, 3 2012 @ 04:48 PM
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Originally posted by TheTardis


No but the point is when is it going up?


Today....why not look them up on google finance?





General Motors (NYSE:GM) Reports Auto Sales Stronger Than Anticipated
Oakshire Financial - 4 hours ago

GENERAL MOTORS COMPANY : GM Reports June U.S. Sales up 16 percent
4-traders - 6 hours ago

GENERAL MOTORS COMPANY : GM June U.S. Sales Up 16%



I am just sayin' it's good to not get your investment advice from political hacks...And IBD is a known source of political hackery...The stephen hawking bit below cracked me up.



Investors Business Daily also publishes editorials skeptical of peak oil and global warming, often proposing alternate solutions. The Times has characterized IBD as a "right-wing newspaper".[6]

On July 31, 2009, an editorial in IBD touted the superiority of U.S. healthcare and argued that physicist Stephen Hawking "wouldn't have a chance in the U.K., where the [British] National Health Service would say the life of this brilliant man, because of his physical handicaps, is essentially worthless."

As Hawking has always lived in the U.K. and receives his medical care from the NHS, the editorial was widely criticized

WIKI




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