09-17-2012, 11:40 AM | #1 |
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GM wants out of government control
CHICAGO (MarketWatch) -- The Treasury Department is resisting General Motors' push for the government to sell off its stake in the auto maker, The Wall Street Journal reports. Following a $50 billion bailout in 2009, the U.S. taxpayers now own almost 27% of the company. But the newspaper said GM executives are now chafing at that, saying it hurts the company's reputation and its ability to attract top talent due to pay restrictions. Earlier this year, GM /quotes/zigman/1466682/quotes/nls/gmGM-1.28% presented a plan to repurchase 200 million of the 500 million shares the U.S. holds with the balance being sold via a public offering. But officials at the Treasury Department were not interested as selling now would lead to a multibillion dollar loss for the government, the newspaper noted.
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09-17-2012, 01:43 PM | #2 |
Retarded One-Legged Owl
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This thread has been up for two hours and hasn't been locked yet. I'm shocked.
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09-17-2012, 02:04 PM | #3 |
Space Shuttle Aficionado
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09-17-2012, 02:17 PM | #4 |
Logic is dead
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Ok, I'll bite...
This is exactly why I was skeptical about the bailout from the beginning: What's the end game? Once you get involved with business, you become a business, and I thought that isn't what the gov is suppossed to do. Now we got a catch-22 on how to right the ship. Who is going to blink first? ... This is about as far as I can go without getting political.
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09-17-2012, 03:53 PM | #5 |
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I didn't post this because I thought it was political. I just thought that since we all are part of the GM family that it was an interesting topic.
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09-17-2012, 04:02 PM | #6 |
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What I don't get is how the treasury department can refuse to allow a stock buy-back by using the reasoning that the government will take a huge loss.
Um, hello government, you've already taken a huge loss because the stock prices won't go back up until after you stop owning the shares. GM is offering to buy back the shares at more than their current value, and yet the government is still looking at the transaction in terms of past dollars. This is why the government should NEVER be allowed to purchase stock in a "private" company.
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09-17-2012, 04:07 PM | #7 |
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This is a tough one for me. Sell at a huge loss now. Keep and sell for an even bigger loss tomorrow. I don't really see the price of GM going up enough anytime soon for us to even break even.
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09-17-2012, 04:09 PM | #8 |
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GM stock price won't go up significantly until after the government no longer owns any shares.
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09-17-2012, 04:09 PM | #9 |
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I heard about this on news radio this morning. The government needs to butt out.
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09-17-2012, 05:07 PM | #10 |
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I would post in this thread but do not want to end up like PQ.
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09-17-2012, 05:14 PM | #11 |
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I bet you weren't saying that when they saved GM. Besides, this is your money and mine they are playing with. Doesn't that bother you a little?
Last edited by motorhead; 09-17-2012 at 06:36 PM. |
09-17-2012, 05:25 PM | #12 |
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I'm not here to lock the thread. Let's keep this discourse polite and respectful.
I want to point out that a failure of GM or Chrysler would have led to lost jobs. The economy is already bad in part due to bad corporate decision-making by big companies. GM and Chrysler aren't entirely innocent here. Do their suppliers deserve to be out of business for lack of orders? Did they make GM or Chrysler's decisions? Do their employees—hard-working people who have no say in how the company operates, I'm not talking about the suit-and-tie folks that work in Detroit—deserve to be out of jobs? Where are they going to replace that income? Is some other major factory in their neighborhood looking to hire? This isn't politics. Get past the red vs. blue discussion. Talk to me about how those people deserved to lose their jobs because their bosses didn't mortgage the business before things went bad. Talk to me about how Congress doesn't need their income taxes because we're experiencing such a huge surplus. Wait a second. When was the last time we had a surplus? I'm sure it had something to do with people working and having jobs that the government could tax. Imagine an alternate reality where the government says, "Screw you," to Wall Street and major auto manufacturers. Bad bonds don't get bought. Oh yeah—GM and Chrysler go away, too. All of the guys who make seats and radios and all the other parts those manufacturers outsource go under. Everyone loses their jobs. There are no replacement jobs. The government still has no money, and people still complain that the government should have done more about jobs, except now we no longer go to Camaro5 because there's no Camaro to discuss. :( It's a lose-lose situation. We should be grateful that Chevrolet exists because all of us here are Camaro enthusiasts.
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09-18-2012, 08:21 AM | #13 | ||
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Quote:
Quote:
GM had to go through bankruptcy anyway, so it's not like the outcome would have changed at all. What really needs to happen is the disolution of the overwhelming power the unions have over the efficiency of the auto companies. But arguing that point will more than likely sway too far towards politics. :(
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09-18-2012, 08:25 AM | #14 | |
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Quote:
If I remember correctly, GM would have been up for liquidation if it went into a traditional bankruptcy. It wouldn't be GM anymore. They would have sold each brand and nameplate to whoever wanted to bid on it. The most interested buyers were Chinese, which ironically would have resulted in a foreign (communist) government-controlled GM. It's bad either way. As far as unions are concerned, that's a conversation we can't have here, but it's a good one to have over a few beers off the site.
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