- Oct 7, 2011
- 38,401
- 4,162
- 1,130
Despite spending several $Millions on propaganda campaigns telling us how well GM is doing, this is the sad reality. It's time to close the book on Corporate Welfare once and for all.
General Motors(GM) shares fell to a fresh 2012 closing low of 19.57 on Monday. The stock hit 19 in mid-December, the lowest since the auto giant came public at $33 in November 2010 following its June 2009 bankruptcy.
Normally you might say, tough luck investors. But this is Government Motors. The Treasury still owns 26.5% of GM, or 500 million shares. Taxpayers are still out $26.4 billion in direct aid. Shares would have to hit $53 for the government to break even. Those shares were worth about $9.8 billion as of Monday. That would leave taxpayers with a loss of $16.6 billion.
But that's not the full tally. Obama let GM keep $45 billion in past losses to offset future profits. Those are usually wiped out or slashed, along with debts, in bankruptcy. But the administration essentially gifted $45 billion in write-offs (book value $18 billion) to GM. So when GM earned a $7.6 billion profit in 2011 (more on that below), it paid no taxes.
Include that $18 billion gift, and taxpayers' true loss climbs to nearly $35 billion.
Of course, there's no chance that the Obama administration will sell off its GM stake before Election Day. That would force Obama to recognize actual losses, which would remind voters that the bailout was a massive transfer from taxpayers to unions...
Read More:
General Motors Stock At 2012 Low, Lifting Loss Taxpayer Losses To Nearly $35 Billion by Andrew Malcolm - Investors.com
DRUDGE REPORT 2012®
General Motors(GM) shares fell to a fresh 2012 closing low of 19.57 on Monday. The stock hit 19 in mid-December, the lowest since the auto giant came public at $33 in November 2010 following its June 2009 bankruptcy.
Normally you might say, tough luck investors. But this is Government Motors. The Treasury still owns 26.5% of GM, or 500 million shares. Taxpayers are still out $26.4 billion in direct aid. Shares would have to hit $53 for the government to break even. Those shares were worth about $9.8 billion as of Monday. That would leave taxpayers with a loss of $16.6 billion.
But that's not the full tally. Obama let GM keep $45 billion in past losses to offset future profits. Those are usually wiped out or slashed, along with debts, in bankruptcy. But the administration essentially gifted $45 billion in write-offs (book value $18 billion) to GM. So when GM earned a $7.6 billion profit in 2011 (more on that below), it paid no taxes.
Include that $18 billion gift, and taxpayers' true loss climbs to nearly $35 billion.
Of course, there's no chance that the Obama administration will sell off its GM stake before Election Day. That would force Obama to recognize actual losses, which would remind voters that the bailout was a massive transfer from taxpayers to unions...
Read More:
General Motors Stock At 2012 Low, Lifting Loss Taxpayer Losses To Nearly $35 Billion by Andrew Malcolm - Investors.com
DRUDGE REPORT 2012®
OK I have a change of heart I'm going to get a $47,000 puddle jumper that goes 27.2 miles on overnight charge. Lmbo that'll sell (if gas is $9.99) was that the plan? As my favorite lady says "You betcha" lol @ greentards in DC and at GM .....
