Sub PRIME or how Obama says loosing 55% is how wonderfully government operates.. Remember this.. Bain Capital a Private Equity company returned honest 55% to its investors. pass this to your single women friends who are out of work
iamnothere
2012/09/06 14:06:02
Government Motors
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As
we wait on the news from Super Mario in Europe about his new “save the
continent of Europe” plan, which will be giving more debt to the
outrageously indebted nations of Spain, Greece, Italy, Ireland,
Portugal, etc we will shift our focus to the USSA.
Specifically, we will look at Government Motors (GM) because it has been in the news lately.
To
type
“Government Motors” rather than “General Motors” is no accident, as well
as USSA rather than USA. Unless you live under a rock, you know that
the government bailed out GM in order to save the unions. It is being
hailed by the president as an amazing success story. Success must be
defined by the fact that GM is still making cars, but neither profitably
for the company, nor the government overlords.
Well,
overall GM is still operating at a profit but its recent quarterly
report contained a surprise: a staggering 41% profit decline. Moreover,
the much ballyhooed Volt production is being suspended due to
poor sales.
The
post IPO high price was nearly $40 and traded $21 today. Although the
post-IPO results of Facebook have been slightly worse, the FB debacle is
considered horrendous while the president calls Government Motors a
success story. Again, GM is nearly off by 50%; but it’s a “success?”
Finally, in order to make more money Government Motors has been increasing its
use of subprime loans. Yes – SUBPRIME! Although the government is
constantly harping on the bankers about subprime mortgage loans, and it should, it conveniently turns a blind eye to the same practice in the auto industry because it is now ~33% owner of GM.
According
to an auto report from Standard & Poor’s, weighted average FICO
scores for GM owners is down to 579, loan lengths greater than
5-years is now 77.59% of the business, and average loan-to-value on new
cars was 109.55%, with average loan-to-value on USED cars at 126.62%.
If you can’t afford a new car, no worries, Government Motors is here to help you (get deeper in debt).
The
final “success” of our Government Motors story must surely be the
big-bucks we’re making on then stock. Surely we’re holding
out for a windfall profit. Wait, what’s this break-even price I’m
reading? $53.00!??? But GM trades under $22 per share; and we need
$53.00 just to break-even?
When
was the last time GMs post-IPO traded at or above $53 per share?
NEVER! Yup, using socialist-babble that the White House excels at to
spin a story – this is a mega-winner.
we wait on the news from Super Mario in Europe about his new “save the
continent of Europe” plan, which will be giving more debt to the
outrageously indebted nations of Spain, Greece, Italy, Ireland,
Portugal, etc we will shift our focus to the USSA.
Specifically, we will look at Government Motors (GM) because it has been in the news lately.
To
type
“Government Motors” rather than “General Motors” is no accident, as well
as USSA rather than USA. Unless you live under a rock, you know that
the government bailed out GM in order to save the unions. It is being
hailed by the president as an amazing success story. Success must be
defined by the fact that GM is still making cars, but neither profitably
for the company, nor the government overlords.
Well,
overall GM is still operating at a profit but its recent quarterly
report contained a surprise: a staggering 41% profit decline. Moreover,
the much ballyhooed Volt production is being suspended due to
poor sales.
The
post IPO high price was nearly $40 and traded $21 today. Although the
post-IPO results of Facebook have been slightly worse, the FB debacle is
considered horrendous while the president calls Government Motors a
success story. Again, GM is nearly off by 50%; but it’s a “success?”
Finally, in order to make more money Government Motors has been increasing its
use of subprime loans. Yes – SUBPRIME! Although the government is
constantly harping on the bankers about subprime mortgage loans, and it should, it conveniently turns a blind eye to the same practice in the auto industry because it is now ~33% owner of GM.
According
to an auto report from Standard & Poor’s, weighted average FICO
scores for GM owners is down to 579, loan lengths greater than
5-years is now 77.59% of the business, and average loan-to-value on new
cars was 109.55%, with average loan-to-value on USED cars at 126.62%.
If you can’t afford a new car, no worries, Government Motors is here to help you (get deeper in debt).
The
final “success” of our Government Motors story must surely be the
big-bucks we’re making on then stock. Surely we’re holding
out for a windfall profit. Wait, what’s this break-even price I’m
reading? $53.00!??? But GM trades under $22 per share; and we need
$53.00 just to break-even?
When
was the last time GMs post-IPO traded at or above $53 per share?
NEVER! Yup, using socialist-babble that the White House excels at to
spin a story – this is a mega-winner.
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