Yesterday, August 13, GM stock sold for $20.47 per share, down from its IPO of 33 dollars.
Question: why do you suppose GM stock is so far removed from its Initial Public Offering? Could it be that investors have never seen this stock as "a good deal?" You think?
Add to this reality, the latest in Detroit news:
August 13, 2012 at 7:42 pm
Treasury: U.S. to lose $25 billion on auto bailout
Washington -The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That's 15 percent higher than its previous forecast.
In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31, when GM's stock price was $22.20 a share.
On Monday, GM stock fell $0.07, or 0.3 percent, to $20.47. At that price, the government would lose another $850 million on its GM bailout.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout. At the current price, the Treasury would lose more than $16 billion on its GM bailout.
The steep decline in GM's stock price has indefinitely delayed the Treasury's sale of its remaining 26 percent stake in GM. No sale will take place before the November election.
The article goes on to make the claim that this bail-out saved more than a million jobs "nation wide," Nonsense.
The fact of the matter is very different. The truth? In 2008, just before the bottom fell out of everything, 284,000 folks worked for GM * world wide. Today, that total is 202,000**.
It is sheer idiocy to claim that there are more people working for GM, today, than before Obama gutted the auto company, shutting down its Pontiac, Saturn and Hummer divisions and dumping Chrysler/Dodge, selling this auto division to Fiat (2011) for a 2.5 billion dollar loss to the taxpayer. 789 Chrysler dealerships, alone, were closed ***.
Let's not forget that GM pays no corporate tax, a 10 year deal with the Federal Government at a net loss to taxpayers of more than $2 billion since 2009.
After Obama is "gone" and the Compliant Media no longer feels the need to prop up his brand of nonsense, we will learn the full truth of this bail-out debacle.
Conclusion: you now know why investors see GM as a poor investment. My advice? Do not believe anything you read about the "success" of GM. There are so many Progressive surrogates in this world, all willing to lie for the greater good as a matter of policy.
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* 284,000 -- Ask.com
**. 202,000 -- Wikipedia
*** Dealership closings (link)
**** Chrysler sold to Fiat - the loss total in this article has been revised up to 2.5 billion.