GM Begins Buying Back Shares From the Government at Almost 50% Under Break Even for Taxpayers

Nice deal for GM.

In order for taxpayers to break even on the GM bailout, the share price needs to hit $53/share before sale. The government is exiting the company partially in January, selling 200 million taxpayer funded shares back to GM at $27.50/share.

In the attached article USA Today highlights that this would be a 7.9% premium from the current share price of  $25.49. That taxpayers are taking a nearly 50% bath on this deal is also mentioned.

The Treasury says that it will exit its complete position over the next year or so. For all the talk of the “success” of the auto bailout—it seems to me that losing half of our money does not constitute success.

There is always the chance that GM shares will rise and we’ll be able to cut our losses at least a bit as shares are sold back over the next year. But I’d say there’s at least an even chance that the taxpayer will lose even more.

Click here for the article.

Colin Ott
Colin Ott 5pts

Does GM stand for Government Money ?

Joe Reesman
Joe Reesman 5pts

iS HE THE PRES. of the hate America club?

Charles Massey
Charles Massey 5pts

so we lose money - GM wins and Obama has kept the union happy - impeach Obama now

Steven Underwood
Steven Underwood 5pts

As long as they bring all probuction back home. Who cares! let's get back to building our own shit!

WeXl Notapplicable
WeXl Notapplicable 5pts

nice timing.surely that wont b mentioned in the mainstream news.

Greg Call
Greg Call 5pts

There are two sad components here: 1) GM is demonstrably building its best vehicles in 50 years (NO thanks to the government) 2) Much of GM's target market is no longer interested in buying those vehicles because of the government takeover. And I don't blame them. The government has in effect pissed in the punchbowl. A straight Chapter 11 would have been far preferable.

Curtis Owens
Curtis Owens 5pts

Or make a product that people will buy at those prices.

Jeremy Capps
Jeremy Capps 5pts

in a social economics we learn that if you have a product and you can't sale it at what you asking you must in turn lower prices.

Clarke Brotherson
Clarke Brotherson 5pts

wow! now they can open even more plants in china! what's the name of that chinese union that pays workers the same as uaw contracts? U CAN SQUAT? ;) ...... for the FAT ASS UNION bully pushing the reporter around....try that in china.......they'll be pulling a bayonet out of your pooper! :O

Ruthann Eve Little
Ruthann Eve Little 5pts

We own that! Government Motors. Let the unions buy their cars. I wonder which auto manufacturer most GM employees buy?

Roger Handley
Roger Handley 5pts

Another abomination for the American citizens in the Obamanation.

Ryan Eggers
Ryan Eggers 5pts

Make them buy back what the tax payers shelled out plus 20 percent.