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Obama To Dump GM Stock Before Election

From the Wall Street Journal:

U.S. Hurries to Sell GM Stake

By SHARON TERLEP
APRIL 19, 2011

The U.S. government plans to sell a significant share of its remaining stake in General Motors Co. this summer despite the disappointing performance of the auto maker’s stock, people familiar with the matter said.

A sale within the next several months would almost certainly mean U.S. taxpayers will take a loss on their $50 billion rescue of the Detroit auto maker in 2009.

To break even, the U.S. Treasury would need to sell its remaining stake—about 500 million shares—at $53 apiece. GM closed off 27 cents a share at $29.97 in 4 p.m. trading Monday on the New York Stock Exchange, hitting a new low since its $33-a-share November initial public offering

The stock market must not have heard about the Chevy Volt. Mr. Obama has told us that it is going to revolutionize the auto industry and save General Motors.

At Monday’s price, and taking into account shares sold during the IPO, taxpayers would lose more than $11 billion on the rescue if the government dumped the rest of its stake now.

So the US taxpayer is going to lose more than 1/5th of their investment. Remember how Mr. Obama and the Democrats and their lickspittle media promised us that the taxpayer would turn a profit from bailing out GM? In fact, weren’t we told before the 2010 midterms that GM had already paid back its bailout?

But what’s $11 billion dollars down the drain, as long as Mr. Obama’s UAW constituents still get to keep their Cadillac health insurance and pensions? After all, after blacks, union members are Mr. Obama’s most dependable voting block. They must be protected at all costs.

Government officials are willing to take the loss because the Obama administration would like to sever its last ties to the auto maker, the people familiar with the matter said. A summer sale makes it more likely Treasury could sell all of its stake in GM by year’s end, avoiding a potentially controversial sale in the 2012 presidential election year.

In other words, Mr. Obama is willing for the taxpayers to lose $11 billion dollars in order to take GM off of the books in time for his re-election campaign. Isn’t it comforting to see what his priorities are?

His priorities are always about holding on to power. And everything else can go to hell.

GM also would like an early exit in large part because it faces tight restrictions on executive pay as long as the U.S. government is a part owner

Oh, our sides. Now that the UAW are the owners, they don’t want any stinking salary caps on their executives.

And, as we have noted before, the GM and Chrysler bailout — actually we should just call it the ‘UAW bailout’ — was done at Mr. Obama and the Democrats most strident insistence.

From the (post-election) November 11, 2008 edition of the Washington Post:

Obama Asks Bush to Back Rescue of Automakers

By Lori Montgomery and Michael D. Shear
Tuesday, November 11, 2008; A01

President-elect Barack Obama yesterday urged President Bush to support immediate aid for struggling automakers and back a new stimulus package

Yesterday, in an urgent bipartisan appeal, all 15 House members and both senators from Michigan sent a letter asking the Bush administration to include the auto industry in the Treasury program on its own initiative or to work with Congress to modify the program.

"There’s an urgent crisis. It’s a national issue. If the administration won’t act, we’ll have to. But they should act," said Rep. Sander M. Levin (D-Mich.)

Democrats want the Bush administration to approve an additional $25 billion in loans from the Treasury program, bringing total federal assistance to the car companies to $50 billion

The letter followed a similar entreaty to Paulson over the weekend by House Speaker Nancy Pelosi (D-Calif.) and House Majority Leader Harry M. Reid (D-Nev.)

Funny how we never hear about that now.

This article was posted by Steve on Wednesday, April 20th, 2011. Comments are currently closed.

7 Responses to “Obama To Dump GM Stock Before Election”

  1. TerryAnne says:

    The stock market must not have heard about the Chevy Volt. Mr. Obama has told us that it is going to revolutionize the auto industry and save General Motors.

    No kidding. I heard it was supposed to light a fire under the auto industry and burn up the ranks of the stock market.

    :)

  2. proreason says:

    Would gubamint motors still be in bidness if the gubamint wasn’t buying gobs of its inferior products?

  3. tranquil.night says:

    Speculators’ fault.

  4. Right of the People says:

    The stock market must not have heard about the Chevy Volt.

    That’s precisely why the stock is falling, they’ve seen the Volt. Cars that catch fire when they aren’t even running tend not to be that popular.

    Just sayin’.

  5. Chrispbass says:

    “””A sale within the next several months would almost certainly mean U.S. taxpayers will take a loss on their $50 billion rescue of the Detroit auto maker in 2009.””

    RRRrrrrriiiigggghhhhhhtttttt, ***MY*** rescue of GM. Right, I remember being asked.
    what a load


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