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| Great Moments in Central Planning |
| 2011-04-20 |
| A report that the US government plans to sell off much of its remaining stake in General Motors this year despite the firm's lackluster share price caused investors to flee the stock Tuesday. After the Wall Street Journal reported a government sale could come within the next six months, GM's shares fell by nearly 1.3 percent to end at $29.59. The government sale would "almost certainly" mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009, according to the paper. The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM's stock is currently hovering at a price of just under $30 per share. At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources. The summer sale would make it more likely that the government could unload the remainder of its shares before the 2012 election season. |
| Posted by:Beavis |
| #6 Hello Darth; Back when GM was in trouble and its stock hit bottom a fellow went to several people wanting them to buy in on GM stock. $1000. was the investment. The return I was told was 10-1. Don't hold me to that but should their stock drop again then I'd bet you'll see investors move in. Could we be seeing them actually manipulating the market. Just a random thought of mine. |
| Posted by: Dale 2011-04-20 15:17 |
| #5 John QC: Surely you mean 1956 Buick? The 54's were . . . really weird. The 56's were . . . outstanding. I remember them as if it were yesterday. Sigh. |
| Posted by: Canuckistan sniper 2011-04-20 15:04 |
| #4 I recall years ago an article that appeared in some paper/magazine in the West concerning the manufacture of brassieres in the USSR. The bras looked like something that would fit on the bumper of a 1953 Buick; all large and unattractive. The gist of the article was that their economy was not market driven and no one wanted to buy the bras. So much for the wonders of central planning. It seems like we are heading in the same direction--at least so far as Washington's groupthink goes. |
| Posted by: JohnQC 2011-04-20 14:31 |
| #3 The fact that anyone would buy them is a mystery to me. I would only buy them if I had a burning desire to throw away money and expect the same return on it as if I had thrown it off a bridge. |
| Posted by: DarthVader 2011-04-20 13:07 |
| #2 As the great American philosopher Wednesday Addams once said: "Wait." |
| Posted by: Steve White 2011-04-20 13:04 |
| #1 That GMs shares trade above zero is shocking to me. |
| Posted by: Bright Pebbles 2011-04-20 12:57 |