GM will be no longer as Government

[nmbluesky]

Teabagger,

Do you have any comment?
GM is very successful since Obama take over GM. Now GM become public

[MrTriumph]

1. THE US GOV'T STILL HAS A HUGE STAKE IN GM

To be ckear, GM is a long ways from making the US government whole.

[ChimpersMcSmirkers]

2. True, but this is an excellent start to the unwinding.

I use to have doubts that GM could pull this off, but it seems they have. I believe that taxpayers break even at $52 a share or so. I think that it's pretty likely that we'll see that price within a year or two.

[SlimJimmy]

3. The "tax payers" have no real stake in this IPO. It is open for large investment groups and

certain banks like, Goldman Sachs and Wells Fargo. If you want stock, you'll have to purchase through them (at a markup of course). So don't track down your e-trade broker any time soon thinking you will be able to buy shares. The public, that would be us, get screwed again. When will we ever learn that this administration is just as in bed with the bankers as every other one before them?

[MrTriumph]

4. Yes, the taxpayers are on the hook for GM and Chrysler.

And TARP was a lousy deal for taxpayers.

[Phx_Dem]

6. 26 percent is not huge. They just went down from 62 to 26 percent ownership.

And we're making money on our "investment."

[MrTriumph]

7. Um, it is BILLIONS of our dollars.

x

[Phx_Dem]

8. It's still 26 percent which is about 1/4 ownership - not a najority and not huge.

And we've just made a bunch of money yesterday and will continue to make more. Most experts expect us to get a profit from our investment. All around, it's a great thing Obama did with GM.

[moparlunatic]

11. Yeah and China

bought 15 million shares of GM. I'm sure that can't be good.

[Milo_Bloom]

5. It's called a SCAM.

Gm is no more successful than they were before... they are using an accounting trick to make themselves LOOK better.

GM was able to take a huge write down once the government money came in.. use it to pay off past debts and for future expenses. They were then able to basically fake their "earnings" against covered expenditures to show profit. The profits aren't real, but it enabled them to show it on the books... which drove up the stock price.. which then allows them to sell additional shares with a phony value.

It is the EXACT same scam that went down with TARP. If you actually DUG INTO the earnings reports for the major banks (Citibank, BoA, etc..) you found they DRAMATICALLY reduced bad assets during the months (and year) following receiving the TARP funds. They were then able to show (on paper) record profits because they weren't accounting for losses. They then used this false profit data to sell more shares of stock and raise money.

Say it costs you $6,000 per month to pay all your bills, but you only make $5,000 per month

I LEND you $36,000 so you could PRE PAY all of your bills for the next 6 months.

For the next 6 months you earn $5,000 per month and then, when it is time to pay me back, you only have $30,000... so you go to a bank to get the rest and say, "Look at the last 6 months... I've had $5,000 in disposable income each month after I paid all my expenses" The bank looks at your account and confirms you have earned $5,000 more each month than you have spent and gives you the $6,000 to pay me back.

That's what just happened with GM and previously with the Banking industry.

Welcome to the biggest scam running.

[SlimJimmy]

9. Bravo. Someone who "gets" it. (nt)

[Milo_Bloom]

10. What is sad, is that no one wants to actually know it.

People are freaking out over a pat down at an airport, but turn a blind eye to the entire country being completely scammed!

[SlimJimmy]

12. Exactly . I guess we're just easily amused, so it's easy to scam us. (nt)