Another Obama Success Story: GM Headed For Bankruptcy Again

Posted by on Aug 16, 2012 at 9:25 am

The stooge loves to run around touting how he “saved” General Motors.


President Obama is proud of his bailout of General Motors.  That’s good, because, if he wins a second term, he is probably going to have to bail GM out again.  The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company.  It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday.  This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.

He’s really got that magic touch, doesn’t he?

Right now, the government’s GM stock is worth about 39% less than it was on November 17, 2010, when the company went public at $33.00/share.  However, during the intervening time, the Dow Jones Industrial Average has risen by almost 20%, so GM shares have lost 49% of their value relative to the Dow.

It’s doubtful that the Obama administration would attempt to sell off the government’s massive position in GM while the stock price is falling.  It would be too embarrassing politically.  Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.

Leaving it worthless, just like his failed presidency, which right about now is at junk status.


Tags: , ,

4 Responses to “Another Obama Success Story: GM Headed For Bankruptcy Again”

  1. Blue Hen on 16/16/12 at 1:05 pm

    Good news: Obama has a plan for dealing with the tumbling stock performance.

    Bad news: It involves Jon Corzine.

  2. Lightwave on 16/16/12 at 1:50 pm

    At this point anyone who tells you they plan to vote for Obamee is should no longer be considered reliable. I know all of us have friends or relatives who voted for the guy four years ago, but the economy has gotten so bad now with Bernanke printing trillions and quietly exporting the resulting double digit inflation to the rest of the world for the last four years, that when the septic tank does blow, our economy is done.

    The only way out now is to cut spending and taxes and grow our way out of this mess, and make the tough decisions to say “We can no longer afford these programs to help you. You will have to find help elsewhere.” Anyone who says that “We’re all in this together” is planning on taking your share.

    It’s going to be ugly when it happens. There will be massive urban riots when the welfare state gets cut off. National Guard will have to be mobilized in all 50 states, I would assume.

    But it’s time to cut away the dead weight in the body politic.

  3. Senator Blutarsky on 16/16/12 at 4:41 pm

    GM is doomed for an array of reasons; not merely a substandard product line (weighing on market share already well below their bankruptcy exit plan), but their understanted retirement obligations (nearly equal to the firm’s total common equity in a fair accounting), the liabilities they are likely to accumulate in their renewed foray into subprime lending, and ultimately, the unrestrained rapacity of the UAW. In a word, GM is screwed: