GM Bailout Looking like a win for Obama

[Yurt]

The American workers will always remember that when it came time to save their jobs or send them overseas...the Republican response was.........FUCK YOU

good lord...with idiots like you voting....we're fucked

 

[Revere]

Much sooner than expect GM successfully floated it's initial public stock offering. The planned offering price of $29 a share was raised to $33 due to public demand. The stock closed up on it's first day of trading.

"American taxpayers are now positioned to recover more than my administration invested in GM, and that's a good thing," Obama said, speaking of the government's $50 billion taxpayer-backed rescue of the venerable automaker. This public offering should reduce government ownership of GM stock by nearly a half. Full payoff is expected to come in about 5 yrs.

Since the bailout GM has racked up 3 billion in profits. GM states that they have significantly reduced their production cost increasing the profit margin.

The Center for Automotive Research estimated that aid to GM and Chrysler saved more than 1.1 million jobs in 2009 and 314,000 jobs this year.

I suspect that the GM bailout will not be a campaign issue in the upcoming presidential election.

Obama: GM stock sale a success for his policy - Yahoo! News
GM stock price up 3.6 percent on first day: five questions about the IPO - CSMonitor.com

are you nuts? GM is selling most of the IPO to foreigners and the tax payers are losing $11/share!

WE ARE SENDING GM TO CHINA!

You call this a WIN for OBAMA?

Yes it's a win for Obama but an even bigger win for tax payers. Tax payers will have almost half the bailout money back in less than 2 years. Critics were pretty damn certain that the attempted bailout was doomed to fail, that the administration’s effort to save an estimated million jobs could not work and would only end up costing the taxpayers tens of billions of dollars.

It should certainly not come as a surprise that foreign entities will have a substantial stake in GM. Just as before the bankruptcy, the most profitable part of the business is foreign sales. China just announced a .97% ownership in GM stock. China has a vested interest in GM's success so one might expect that they would acquire some interest in the company.

Taxpayers will never get all their bailout money back, dumbfuck.

Those jobs would have been saved in reorganization.

Get a clue, dickweed.

 

[Revere]

The American workers will always remember that when it came time to save their jobs or send them overseas...the Republican response was.........FUCK YOU

good lord...with idiots like you voting....we're fucked

Yeah, most of the stimulus money for "green jobs" went overseas.

 

[Revere]

Really, why the fuck should taxpayers care that Obama saved the UAW, and only the UAW?

 

[Ragnar]

Government Motors Now 50% Less Governmenty Hot Air

President Obama described this as, “our disciplined commitment to exit this investment while protecting the American taxpayer,” which sounds great on the surface. But even under the most optimistic of circumstances, former head of the U.S. Automotive Task Force Steve Rattner said the government,”may lose $5 billion to $7 billion on its rescue of t he auto industry.”

And what will be required to achieve these modest losses? First of all, the government is contractually barred from selling any more stock for the next six months. And when they do, they’d better hope that G.M’s fortunes have shown an astounding turnaround.



That may prove to be quite a feat, particularly given the performance of their cousins at Ford, whose stock has struggled to get back to $16 per share without being burdened with the Government Motors moniker. And, of course, all of this fails to take into account the fact that people without jobs don’t tend to rush out and buy new cars.

It’s good to see the government slowly extricating itself from this situation, but the pie in the sky projections being rattled off by the Obama administration this week will likely strike many as a lot more vapor and a lot less Viper.

All of the above ignoring the question of weather jumping in to save the highest paid unskilled workers in the world was even legal in the first place... for Bush (or Obama).

Illegal Lending Practices - Reason Magazine

Not to mention that GM could have been on it's slow journey into two or three smaller companies building good cars that people actually want to buy rather than fixing the giant monster that we will just have to bail out again in a decade or two... or sooner.

What a waste!

And not for nothing but Obama did not create the mess in any way shape or form. (he just poured our future into making sure we have the same mess for a long long time to come)

A resurgent market for trucks saved GM's bacon, not Obama. All Obama gave them is an electric car nobody wants to buy and debt they can never pay back to American taxpayers.

Not to mention that if Obama had his way and cap and tax went through, those trucks would be even more hard to sell with seven dollar gas at the pump.

 

[The T]

Those contracts should have been re-opened in bankruptcy court under reorganization.

The concessions were pissing in an ocean.

Yep. And their pensions should have also been re-negotiated. The taxpayer is now on the hook for those...with an eye by government to commandeer others to shore them up. All payack to the unions.

As the right wing revision of history begins!

A bankruptcy proceeding in Feb 2009 would have led to a destruction of the US Auto Industry. Nobody......Nobody was willing to buy into the US Auto industry. It was offered to Fiat, Toyota, VW...nobody wanted to put up the money

Except the US Govt who saved the US Auto Industry

Uh huh...at a LOSS to the Taxpayer...and the taxpayer is on the hook still and it won't go away. They... GM and chrysler should have failed like any other business for their practices...particularally with the deals they did with UNIONS that were unsustainable...and the Staff of GM should have been called to account for the failure for that unsustainability.

They got greedy as did the Unions.

Go play boy. You're out of your league.

 

[Sallow]

Oh goody.

One of the biggest car companies in America should be allowed to fail. With it..it would have probably taken Ford..when it went under.

Perhaps..the Brits could have picked up GM..much like they picked up Lehman brothers. Or the Chinese.

What the heck. Our military vehicles..built by the Chinese.

Sounds good..right?

 

[Flopper]

why are you not saying it is a win for bush as well....?

Before Bush left office, $13 billion from the financial bailout was used to keep GM and Chrysler afloat until the issue could be resolved. The actually bailout that kept GM going was done by the Obama administration.

They were both wrong to interfere with a market solution, that is reorganization under Chapter 11.

I think it very unlikely that any sitting president would actually allowed GM to fail. To leave the entire issue in the hands of lawyers and the courts would have been a huge gamble. Maybe GM would have survived, maybe not. The possible consequences to the Midwest would have been unimaginable.

 

[Revere]

Before Bush left office, $13 billion from the financial bailout was used to keep GM and Chrysler afloat until the issue could be resolved. The actually bailout that kept GM going was done by the Obama administration.

They were both wrong to interfere with a market solution, that is reorganization under Chapter 11.

I think it very unlikely that any sitting president would actually allowed GM to fail. To leave the entire issue in the hands of lawyers and the courts would have been a huge gamble. Maybe GM would have survived, maybe not. The possible consequences to the Midwest would have been unimaginable.

Hey, stupidfuck, what are bankruptcy courts for?

Nobody cares about GM but the UAW, ass breath.

 

[rightwinger]

Yep. And their pensions should have also been re-negotiated. The taxpayer is now on the hook for those...with an eye by government to commandeer others to shore them up. All payack to the unions.

As the right wing revision of history begins!

A bankruptcy proceeding in Feb 2009 would have led to a destruction of the US Auto Industry. Nobody......Nobody was willing to buy into the US Auto industry. It was offered to Fiat, Toyota, VW...nobody wanted to put up the money

Except the US Govt who saved the US Auto Industry

Uh huh...at a LOSS to the Taxpayer...and the taxpayer is on the hook still and it won't go away. They... GM and chrysler should have failed like any other business for their practices...particularally with the deals they did with UNIONS that were unsustainable...and the Staff of GM should have been called to account for the failure for that unsustainability.

They got greedy as did the Unions.

Go play boy. You're out of your league.

Yes...Darwinism at its worst

Let the US Auto Industry fail
Let millions of Americans lose their jobs
Let the industrial infrastructure collapse

It will only make them stronger...BULL SHIT

Once it is gone it will never return

Obama saved the Auto Industry...The Republicans said...FUCK YOU

 

[The T]

Oh goody.

One of the biggest car companies in America should be allowed to fail. With it..it would have probably taken Ford..when it went under.

Perhaps..the Brits could have picked up GM..much like they picked up Lehman brothers. Or the Chinese.

What the heck. Our military vehicles..built by the Chinese.

Sounds good..right?

But yet there are those of you that sling your arrows at other Corporations and applaud their demise.

Nevermind their employees...right?

Go buy a clue. Get your priorities straight. ANY company that goes down due to practices happens because people lose faith in them and don't patronize them...and they fail.

There is nothing new here except that Obama paid back the UNIONS.

 

[Sallow]

Oh goody.

One of the biggest car companies in America should be allowed to fail. With it..it would have probably taken Ford..when it went under.

Perhaps..the Brits could have picked up GM..much like they picked up Lehman brothers. Or the Chinese.

What the heck. Our military vehicles..built by the Chinese.

Sounds good..right?

But yet there are those of you that sling your arrows at other Corporations and applaud their demise.

Nevermind their employees...right?

Go buy a clue. Get your priorities straight. ANY company that goes down due to practices happens because people lose faith in them and don't patronize them...and they fail.

There is nothing new here except that Obama paid back the UNIONS.

I, for one, DO NOT applaud the demise of any American industry..and I am pretty sure most Liberals feel the same way. Some of it needs to evolve..yes..but go completely away..no.

And bad business practices which are the result of some pretty dicey collusion with the energy industry and lax..or no regulation..isn't a reason to let a needful part of our economy go kaput.

 

[Revere]

Oh goody.

One of the biggest car companies in America should be allowed to fail. With it..it would have probably taken Ford..when it went under.

Perhaps..the Brits could have picked up GM..much like they picked up Lehman brothers. Or the Chinese.

What the heck. Our military vehicles..built by the Chinese.

Sounds good..right?

But yet there are those of you that sling your arrows at other Corporations and applaud their demise.

Nevermind their employees...right?

Go buy a clue. Get your priorities straight. ANY company that goes down due to practices happens because people lose faith in them and don't patronize them...and they fail.

There is nothing new here except that Obama paid back the UNIONS.

I, for one, DO NOT applaud the demise of any American industry..and I am pretty sure most Liberals feel the same way. Some of it needs to evolve..yes..but go completely away..no.

And bad business practices which are the result of some pretty dicey collusion with the energy industry and lax..or no regulation..isn't a reason to let a needful part of our economy go kaput.

Like the buggy whip industry? Or the USPS?

 

[Sallow]

But yet there are those of you that sling your arrows at other Corporations and applaud their demise.

Nevermind their employees...right?

Go buy a clue. Get your priorities straight. ANY company that goes down due to practices happens because people lose faith in them and don't patronize them...and they fail.

There is nothing new here except that Obama paid back the UNIONS.

I, for one, DO NOT applaud the demise of any American industry..and I am pretty sure most Liberals feel the same way. Some of it needs to evolve..yes..but go completely away..no.

And bad business practices which are the result of some pretty dicey collusion with the energy industry and lax..or no regulation..isn't a reason to let a needful part of our economy go kaput.

Like the buggy whip industry? Or the USPS?

Buggy whip?

And the USPS is Constitutionally mandated.

 

[rightwinger]

Oh goody.

One of the biggest car companies in America should be allowed to fail. With it..it would have probably taken Ford..when it went under.

Perhaps..the Brits could have picked up GM..much like they picked up Lehman brothers. Or the Chinese.

What the heck. Our military vehicles..built by the Chinese.

Sounds good..right?

But yet there are those of you that sling your arrows at other Corporations and applaud their demise.

Nevermind their employees...right?

Go buy a clue. Get your priorities straight. ANY company that goes down due to practices happens because people lose faith in them and don't patronize them...and they fail.

There is nothing new here except that Obama paid back the UNIONS.

I, for one, DO NOT applaud the demise of any American industry..and I am pretty sure most Liberals feel the same way. Some of it needs to evolve..yes..but go completely away..no.

And bad business practices which are the result of some pretty dicey collusion with the energy industry and lax..or no regulation..isn't a reason to let a needful part of our economy go kaput.

There was a time when our industrial complex was considered a national security priority. Now the Republicans are willing to concede it to the Chinese

 

[The T]

But yet there are those of you that sling your arrows at other Corporations and applaud their demise.

Nevermind their employees...right?

Go buy a clue. Get your priorities straight. ANY company that goes down due to practices happens because people lose faith in them and don't patronize them...and they fail.

There is nothing new here except that Obama paid back the UNIONS.

I, for one, DO NOT applaud the demise of any American industry..and I am pretty sure most Liberals feel the same way. Some of it needs to evolve..yes..but go completely away..no.

And bad business practices which are the result of some pretty dicey collusion with the energy industry and lax..or no regulation..isn't a reason to let a needful part of our economy go kaput.

Like the buggy whip industry? Or the USPS?

Or any others? Sometimes you gotta let go. Nature abhores a vacuum...and things right themselves. WHY prolong failure? Especially at Taxpayer expense?

It was payback...pure and simple. Nothing will convince me otherwise. So you Statists just cease with the crap...

Dead on Revere.

 

[CrusaderFrank]

Let's ask the Senior Secured Creditors what they think about Obama's Big Win.

 

[Sallow]

I, for one, DO NOT applaud the demise of any American industry..and I am pretty sure most Liberals feel the same way. Some of it needs to evolve..yes..but go completely away..no.

And bad business practices which are the result of some pretty dicey collusion with the energy industry and lax..or no regulation..isn't a reason to let a needful part of our economy go kaput.

Like the buggy whip industry? Or the USPS?

Or any others? Sometimes you gotta let go. Nature abhores a vacuum...and things right themselves. WHY prolong failure? Especially at Taxpayer expense?

It was payback...pure and simple. Nothing will convince me otherwise. So you Statists just cease with the crap...

Dead on Revere.

Since we don't have the Jetcar yet..and most of the world still gets in autos to get from point a to point b..it would have been a really lousy idea to let this company fail.

And Statist? Please..Ayn Rand was a lousy writer.

 

[Flopper]

Yes, "supported" means they wanted GM and Chrysler comatose, as they are now.

Thats strange..

The people buying their stock today don't seem to think so


What ever happened to the GOP that used to scream "Buy American" ??

Now they just tell the workers to drop dead

The IPO was only available to the Chinese and handpicked institutional investors. More corporate cronyism.

Let the workers renegotiate their contract with the bankruptcy trusteee in reorganization.

Not so. Most of the shares will end up going to mutual funds, exchange traded funds, and underwriters. Shares go first to the underwriters, in this case Lynch, Citygroup, J.P. Morgan, etc. Shares are then allocated to a large network of participating brokers. Orders for the shares are taken by the broker from their customers. Shares go to their best customers and from there find their way to the open market. I think you will find that the shares will be widely distributed and not as you say placed with just Chinese and handpicked institutional investors. The SEC would not allow this as this would be a private placement.

 

[CrusaderFrank]

If we survive that long, GM will be back in bankruptcy court within 3 years