The union was well taken care of because of the bailout...... but We the People,
the taxpayers are getting screwed!
GM to Recall at Least 38,000 Cars; $25 Billion Loss on Auto Bailout
maggiemay
2012/08/14 18:29:34
On a day in which GM announced it was recalling at least 38,000 of its vehicles due to a crash risk, the Treasury Department said in a new report that it now expects to lose $25 billion on the auto bailout, which is $3.3 billion more than was previously forecast.
According to The Detroit News, the report may actually
underestimate the losses and comes on the day in which GM’s stock price
fell $.07 to $22.20 a share. At this price, the government, which spent
$50 billion of taxpayer monies to bailout GM, would lose another $850
million on its “investment” in GM.
The report notes the government still has 500 million
shares of GM and needs to sell those shares at $53 a share for the
government to break even on the GM bailout. This seems unlikely, and
officials said no sale will take place before the November election.
The government holds another 74 percent state in an auto
finance company, which is part of another bailout portfolio in which the
government invested $17.2 billion. They have only recovered $5.7 to
date.
And the recalls are not going to help GM become more profitable.
According to Reuters, over 38,000 Impalas -- including
36,413 police cars in the U.S. and 1,713 more in Canada -- from model
years 2008 to 2012 will be recalled, and the recalls should begin on
August 21st. Non-police versions will not be impacted.
National Highway Traffic Safety Administration (NHTSA)
documents revealed that the cars are being recalled because defects “can
lead to loss of control of the car.”
Meanwhile GM’s CEO Dan Akerson said he would take actions
to boost the company’s stock price, and this could mean a doubling down
on the company’s subprime lending.
The Obama administration has crusaded against subprime lenders except
when those lenders -- like GM Financial -- can benefit the
administration politically
http://www.breitbart.com/Big-Government/2012/08/13/Double-Fai...
Top Opinion
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No nonsense NanC...don't BS... 2012/08/14 18:48:55
GM is the least of our worries.
We should be asking why the media ain't covering the $3 Trillion Dollard Stimulus dissapearence & where the Shovel Ready Jobs Probram went.
I suggest we should allow the social security fund to invest 10% of it's assets in private dividend paying equities. GM would be a good start.
Or perhaps just read the article first.
We bought those shares for over $50 per share when the market said that GM would never again reach that point. Latest valuation is $20.21 per share and falling on the latest news of a loss of so much money on the Recalls..
And Then there is this as of August 02, 2012.
http://www.huffingtonpost.com...
My son was a salesman at the Local Chev dealer. He got laid off a few months ago as the dealer had to cut back on Employees due to no sales. After a 15 year career with the dealer. He says that the dealer is so overloaded with inventory that is not moving, the dealer is having trouble covering Payroll and expenses.
Ford admits it was lucky. In 2007 it borrowed a great deal of money for liquidity purposes so it was flush with cash when the recession hit. That forced it to cut it's dividend. The stock eventually went to about $4 a share. It later peaked for the current cycle at 17. I expect it to hold steady for the next 6 months or so. Depending on the election I would then expect it to start back up with an Obama win or drop with a Romney win.
However, I see no reason for the government to sell stock in a core US business. I have no idea if it will ever hit $50 again, but I do expect it to start paying dividends again.
pentions would have had to wait sorry. tax payer money should have not been used.3
they are a private company. they built it they should have gone chapter 13 if needed chap 7.
You act like you know everything..you don't
Banks do not keep money in a bin. They take that money and loan it out or they buy T-bills with it. The banks think the US is safe. That even includes German, Chinese
and other foreign banks.
The reason that we had our AAA ratings dropped is because the House Republicans appeared to be unreliable. However, investors didn't agree so we had no increase in the cost of money.
There is not enough gold in the world to fund the currency needs of modern nations. Nor is gold a stable store of value. Trying to use it would result in deflation that was so bad that most governments would be overthrown.
We have already seen the French government thrown out by austerity. I expect to see the Greek government fall within a year. The British and Germans will be out within 3 yearrs. China and India's governments will survive because they are keynsian and socialist.
Social Security is just another part of the National deficit now. And for about a year there has beem more going out than comes in by FICA, which is the source of funding for SS.
nobody is buying the FUGLY mobile bomb the volt
Actually I think he is notheing but a professional Troller.
Obama; money AND cars to burn!!