GENERAL MOTORS BAILOUT: $10 BILLION LOSS

[87GNX]

http://www.detroitnews.com/article/2...text|FRONTPAGE

[The Stig]

Ummmmm - did you read the article? GM isn't the one losing the money, its the Department of the Treasury - which IMO is because they are choosing to unload all of their remaining shares at once instead of slowly selling them like they had originally planned. They're flooding the market with GM shares (and announcing that they're going to flood the market didn't help either), it's only to be expected that GM stock will temporarily dip because of it.

[trademaster]

Originally Posted by The Stig

Ummmmm - did you read the article? GM isn't the one losing the money, its the Department of the Treasury - which IMO is because they are choosing to unload all of their remaining shares at once instead of slowly selling them like they had originally planned. They're flooding the market with GM shares (and announcing that they're going to flood the market didn't help either), it's only to be expected that GM stock will temporarily dip because of it.

The Treasury is going to lose a ton of money on the deal regardless of when they sell because GM stock with the current share structure will never be worth the near $80/share required to recover the total. Also, you didn't seem to read the article yourself. The Treasury is not unloading all of their shares at once, not even close. They hold over 240 million shares and are only selling 30 million.

The planned sales are pursuant to SEC rule 10b5-1. Announcing the plan to sell publicly protects the Treasury from potential insider trading charges. Having access to material non-public information makes trades without a 10b5-1 plan nearly impossible to do legally. It would be an incredibly huge mistake for the Treasury to sell without a 10b5-1 plan.

[CamaroSkooter]

Hopefully the government learned its lesson.

"If the government buys stocks in a company, they're going to have a bad time."

[Brian 1LE SS]

So the tax payers are going to lose 10 billion, not the gov.

[72MachOne99GT]

Originally Posted by trademaster

The planned sales are pursuant to SEC rule 10b5-1. Announcing the plan to sell publicly protects the Treasury from potential insider trading charges. Having access to material non-public information makes trades without a 10b5-1 plan nearly impossible to do legally. It would be an incredibly huge mistake for the Treasury to sell without a 10b5-1 plan.

I'm pleased with my decision to not know anything about the stock market and the SEC. I have better things to concern myself with, such as how many beers are left in the refrigerator for when I get home today.

[ShnOmac]

Originally Posted by 72MachOne99GT

I'm pleased with my decision to not know anything about the stock market and the SEC. I have better things to concern myself with, such as how many beers are left in the refrigerator for when I get home today.

[Angrybird 12]

From everything going on with the IRS now they will probably make up that loss in a year or two...

[Number 3]

Many stocks have to be held. The investor has to be patient and often be willing to invest for the long haul. Because the treasury decided not to ow this simple investment strategy is not GMs fault. In time that number could be 0 or it could be 20.

[VR Code R6P]

Originally Posted by Number 3

Many stocks have to be held. The investor has to be patient and often be willing to invest for the long haul. Because the treasury decided not to ow this simple investment strategy is not GMs fault. In time that number could be 0 or it could be 20.

Really!! That is what the original GM stockholders who built GM thought too.

[myold88]

Originally Posted by CamaroSkooter

Hopefully the government learned its lesson.

"If the government buys stocks in a company, they're going to have a bad time."

The government (guess who) could care less.

[TheGhosty]

sooo to me this looks like it might be a good time to buy some gm stock? if only they would fix those tail lights..

[Number 3]

Originally Posted by VR Code R6P

Really!! That is what the original GM stockholders who built GM thought too.

You lost me. Any stock can go up or down. The problem is people believed it couldn't. I know of people that went all in with the thought it couldn't go lower than 7. It did and that individual lost his retirement savings. And I had family member who was 100% invested in GM stock and rode it from 90 to 30 before selling it.

If you read my entire post you will see I said the loss could be 0 or 20 (twice as much loss). But GM stock or any mature manufacturing entity for that matter would not likely provide a "quick return". Old mature companies with established sales rarely explode in the market. So expecting the treasury to recoupe any loss would likely not occur in the few years past the "dark days". Heck, I just sold my 100 share I bought in the IPO and made whopping $150. So I wasn't holding on either.

My financial advisor got me out of GM stock lonnggggggg before it went into the mud. I'm assuming everyone else had access that same advice. I only bought shares in the IPO later on to be a loyal employee.

My point was merely to head off that this "loss" was GM's fault. It is simply the treasury deciding to sell at that loss that is the issue.