Glad the thread is staying open. I'm happy we can all have a civil debate.
Quote:
Originally Posted by The_Blur
Remember, this department of the government is made up of business leaders and accountants, experts in the field of finance and business. Because GM already had the product to be profitable, all the government wanted to do is reorganize the business to be sleek and profitable and get out with more money. That sounds easy enough. How will it happen? This is also a great question. The experts in our government have decided that going public will give the government and GM alike tons of money. With this product line and stocks sold at a discount, people will leap on the opportunity to buy stock, causing a high demand for the stock. High demand will cause the stock price to spike, leading to a high return on the stock that the government sells.
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I see what you are trying to say. However, there isn't a real great track record of the government successfully reorganizing a business to be sleek and profitable and getting more money out of it. When Chrysler actually repaid its loan in the 80s, it was such a shock even to the government that it took a month for anyone to figure out what to do with the check Lee Iacocca handed them. In theory, these are experts in the fields of finance and business, but remember that these are the same "experts" who are running the "inflation will save us" Federal Reserve, running a 13 figure annual deficit, felt that encouraging sub-prime loans was a great idea, and often don't know what is in their own legislation when they vote on it.
Ultimately, it doesn't really matter what any of us think of the bailout at this point. Like to or not (not in my case) it happened, and we have to move on from where we are standing, not from where we would like to be standing. I'm still rooting for GM, but I'm just trying to be realistic based on history. The sooner they are able to go public and have the government divest itself, the better it will be for everyone.