It’s Official: The Government Isn’t Getting Its Money Back Out of GM

Well, they’ve priced the GM IPO, and it looks like they’ve valued the firm at just about what we lent it: $50 billion. Since the government only took a 60% stake, that’s well below what would be needed for the government to recover its investment. Even with the billions they’ve already “paid back”–by not using all the money–Uncle Sam needed the company to be worth more like $70 billion to break even on the bailout.

via The Atlantic.

So with all of its assets, big plants and such, Government Motors (GM) is only worth the cash that the taxpayers were forced to give it? Wow. Just. Wow.

That sure is a bunch of smarties we have in Washington D.C. No wonder us rubes in the flyover states can’t understand how smart they are. If we “loaned” a company money we would expect the company to be worth more after the loan than before it.

I can’t believe there will be a huge market for their “IPO” stock. Who would buy it other than those forced to do so? Virtually every legal agreement between stock and bond holders and the old GM was abrogated during the so-called bankruptcy. Of course I don’t have to worry about that. My 401k will not contain the stock of companies who make products I wouldn’t own.

I will never, ever, ever, buy a Government Motors (GM) product, ever. I hope they fail again and go out of business and their union workers get laid off. Then real Americans can buy those assets and make products Americans want without the need for government ownership. That’s right. I called GM un-American. Do something.

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