Not Logged In Log In   Sign Up   Points Leaders
Follow Us    6:38 AM

GasBuddy News Article

54
votes
GM hasn't offered plan for government sell-off

Tennessean / Detroit Free Press -- The U.S. government eventually will liquidate its ownership stake in General Motors, but the automaker has not proposed an official plan for the Treasury Department to sell off its shares, a source familiar with the discussions said.

The Wall Street Journal reported Monday that the Treasury Department rejected GM’s request earlier this year to offload its remaining stake with a combination of a public offering and a GM share buyback plan. The government still owns about 32% of GM’s common stock, but its stake would fall to 26% if all outstanding warrants were exercised.

If the government sold its remaining shares at Monday’s price of about $24, taxpayers would lose more than $15 billion on the $49.5 billion GM bailout. The Treasury Department wants the stock price to creep higher to redu


Read the Full Article

Submitted Sep 19, 2012 By: DellDude2
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: GM hasn't offered plan for government sell-off Back to Topics
REPLIES (newest first) Post a Reply
Profile Pic
shstew
Champion Author British Columbia

Posts:1,012
Points:702,340
Joined:Nov 2011
Message Posted: Sep 20, 2012 8:18:19 AM

ok
Profile Pic
alex395
Champion Author Louisville

Posts:2,450
Points:302,260
Joined:Jan 2007
Message Posted: Sep 20, 2012 7:41:50 AM

Bankrupt companies should go bankrupt not be bailed out by the Illinois mafia.
Profile Pic
jrs4125
Champion Author Indiana

Posts:4,765
Points:1,092,430
Joined:Sep 2011
Message Posted: Sep 20, 2012 6:43:23 AM

And whats new if you are part of the 1% ?
Profile Pic
tomok
Champion Author Portland

Posts:42,706
Points:2,856,760
Joined:Aug 2006
Message Posted: Sep 20, 2012 5:13:32 AM

Repay ALL the taxpayer money GM, it's Not yours to keep! If GM can't sell enough cars and trucks with a decent profit, copy what other successful car manufacturers are doing! This isn't rocket science GM!
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money.
The price of fuel at the pump is too high!
12/22/2012!
Profile Pic
geminijax
Champion Author Jacksonville

Posts:18,828
Points:3,183,455
Joined:Aug 2005
Message Posted: Sep 20, 2012 12:42:37 AM


BennoBlue: "You don't have to be a financial genius to know that you don't sell when the stock is going up."
LOL! I've been an investor for over 20 years now & haven't done too badly. When the stock price is rising without strong fundamental catalysts, there's a real strong probability of what's known as a blow-off top. The stock takes a dive after that. Professionals will take profits along the way as the stock price is rising or hedge using options, to mitigate their risk. The amateur will participate in the ride up AND the ride down!

"But I guess it's more important to him to take a loss than to do what he can for the economy."
Really? If there aren't strong fundamental catalysts to propel the stock price higher, then selling is for cutting one's losses, not merely taking a loss for the sake of taking a loss.

"Since much of his income has come from stock, it can't be because such a basic principle is unknown to him..."
Quite right! You may want to think about that a few more times!
Profile Pic
tedjm1
Champion Author New York

Posts:5,609
Points:801,050
Joined:Dec 2006
Message Posted: Sep 19, 2012 11:28:47 PM

If they sold, as per Romney, only taxpayers would be hurt. Wealth would feel nothing.
Profile Pic
boatmen
Champion Author New York

Posts:4,966
Points:1,049,770
Joined:Jan 2011
Message Posted: Sep 19, 2012 11:27:27 PM

Hello it's Thursday
Profile Pic
BennoBlue
Champion Author Virginia

Posts:45,442
Points:1,974,130
Joined:May 2008
Message Posted: Sep 19, 2012 11:26:50 PM

As it says in the article, GM's stock has increased value by 25% since July, so why would it make sense to sell now? You don't have to be a financial genius to know that you don't sell when the stock is going up.

Romney's talked about dumping the stock, and that's exactly what it'd be to sell while the price is increasing -- deliberately taking a loss, or more of a loss than necessary. But I guess it's more important to him to take a loss than to do what he can for the economy. Since much of his income has come from stock, it can't be because such a basic principle is unknown to him...
Profile Pic
crreed1
Champion Author West Virginia

Posts:4,157
Points:2,993,865
Joined:May 2005
Message Posted: Sep 19, 2012 11:23:06 PM

ok
Profile Pic
rollercoaster
All-Star Author Hartford

Posts:502
Points:572,185
Joined:Jul 2008
Message Posted: Sep 19, 2012 11:22:28 PM

that ain't right !!!
Profile Pic
12766
Champion Author New York

Posts:4,714
Points:1,973,715
Joined:Oct 2008
Message Posted: Sep 19, 2012 11:21:11 PM

OK
Profile Pic
OGW
Champion Author London

Posts:6,863
Points:1,970,615
Joined:Sep 2005
Message Posted: Sep 19, 2012 11:19:11 PM

GM can't afford to buy back the stock even at the low price because of their mismanagement.
Profile Pic
RENEGADEGAS
Champion Author Missouri

Posts:17,318
Points:2,072,215
Joined:Jul 2008
Message Posted: Sep 19, 2012 11:18:14 PM

The bailouts were a bad idea from the start and continue to be a pain in the sides of American taxpayers.
Profile Pic
boatmen
Champion Author New York

Posts:4,966
Points:1,049,770
Joined:Jan 2011
Message Posted: Sep 19, 2012 11:18:07 PM

Real slow news day
Profile Pic
Gassed01
Champion Author Toronto

Posts:8,561
Points:2,294,850
Joined:Jan 2006
Message Posted: Sep 19, 2012 11:18:00 PM

They need to sell more Volts to the army.
Profile Pic
cheapertvs
Champion Author Richmond

Posts:12,708
Points:3,252,970
Joined:Jan 2004
Message Posted: Sep 19, 2012 11:17:59 PM

Sounds like the government is looking out for the tax payer....
Profile Pic
mfeldstein
Champion Author Ottawa

Posts:10,383
Points:2,414,035
Joined:Feb 2007
Message Posted: Sep 19, 2012 11:17:07 PM

Days old news.
Profile Pic
joel27nc
Champion Author Raleigh

Posts:12,876
Points:2,364,945
Joined:Mar 2008
Message Posted: Sep 19, 2012 11:16:50 PM

Time may tell.
Profile Pic
granitestater
Champion Author New Hampshire

Posts:11,593
Points:1,930,155
Joined:Oct 2008
Message Posted: Sep 19, 2012 11:16:29 PM

This is Obama's idea of a success story. I don't wanna know what he thinks a failure would look like...
Profile Pic
Bigwaynef
Champion Author South Carolina

Posts:14,478
Points:2,589,220
Joined:Dec 2006
Message Posted: Sep 19, 2012 11:16:21 PM

I wanna know whats going on in China with GM there...
Profile Pic
LanguageMan1
Champion Author Tampa

Posts:15,558
Points:2,171,815
Joined:Apr 2008
Message Posted: Sep 19, 2012 11:16:00 PM

Why would there be any selling while prices for the stock are low. It makes sense. You sell at a profit.
Profile Pic
bridgerunner
Champion Author Virginia

Posts:8,980
Points:1,516,135
Joined:Jul 2009
Message Posted: Sep 19, 2012 11:15:43 PM

The taxpayer is the big loser.
Profile Pic
arb0526
Champion Author Greensboro

Posts:2,781
Points:582,685
Joined:Mar 2011
Message Posted: Sep 19, 2012 11:14:25 PM

as long as money is flowing freely would you be eager to stop it?
Profile Pic
Martinman
Champion Author Mississippi

Posts:17,051
Points:2,594,465
Joined:Sep 2005
Message Posted: Sep 19, 2012 11:14:09 PM

The above figure is nothing more than a 'paper loss'.

Second, the potential lost to the federal government was initially forecast to be more than $40 Billion.

Third, the loss to the fdederal government alone, of a failure by either Chrysler or General Motors would have dwarfed the above paper loss.

What do you think the impact would have been as a result of the loss of up to 2.9 million jobs?

What do you think the impact would have been as a result of the loss of income tax revenue not just the federal government, but to state, county, and local municipalities?

What would the loss have been to the federal government's Pension Benefit Guaranty Corporation, that the taxpayers would have been on the hook for?

What would have been the cost to state governments in terms of unemployment and food stamps?

What would have been the cost to the federal government for Medicare and Medicaid?

What would have been the costs the thousands of businesses, from the bankurptcy failures of hundreds of auto parts suppliers?

Even at $50 BILLION, the cost was significantly less, compared to the alternative.

.
Profile Pic
Hi1
Champion Author Ontario

Posts:6,931
Points:2,190,275
Joined:Jun 2007
Message Posted: Sep 19, 2012 11:13:41 PM

Old news.
Profile Pic
CDMAuto
Champion Author Connecticut

Posts:6,079
Points:1,260,815
Joined:Apr 2011
Message Posted: Sep 19, 2012 11:12:54 PM

yep!
Profile Pic
yakstar
Champion Author Montreal

Posts:4,545
Points:971,530
Joined:Jan 2012
Message Posted: Sep 19, 2012 11:12:01 PM

whatever...
Profile Pic
Redcarn
Rookie Author Indianapolis

Posts:25
Points:371,995
Joined:Apr 2006
Message Posted: Sep 19, 2012 11:11:22 PM

GM will not post a profit as long as the government owns a part of the company.
Profile Pic
rahcat
Champion Author Grand Rapids

Posts:5,040
Points:1,173,200
Joined:Jan 2010
Message Posted: Sep 19, 2012 11:09:49 PM

Should have never gotten involved with this in the first place.
Profile Pic
starfighter08
Champion Author Illinois

Posts:1,878
Points:763,935
Joined:Sep 2008
Message Posted: Sep 19, 2012 11:06:59 PM

I would never want buy a GM vehicle.

GM = Gov't Motors

Defination of an elephant, a mouse built to Gov't specifications.
Profile Pic
ManOfLeisureII
Champion Author Philadelphia

Posts:4,174
Points:961,965
Joined:Jan 2012
Message Posted: Sep 19, 2012 11:06:26 PM

We'd need the price to be over $50 per share to recover all the bailout money GM got. At the current price of $21, we are a long way off.
Profile Pic
1fulltank
Champion Author Buffalo

Posts:10,024
Points:2,019,415
Joined:Nov 2008
Message Posted: Sep 19, 2012 11:06:23 PM

Old article.
Profile Pic
NoGas714
All-Star Author Indiana

Posts:796
Points:1,104,370
Joined:May 2005
Message Posted: Sep 19, 2012 11:06:07 PM

Problem is, since everyone in this country is so broke. If they were to sell, it would likely have a foreign buyer.
Profile Pic
OGW
Champion Author London

Posts:6,863
Points:1,970,615
Joined:Sep 2005
Message Posted: Sep 19, 2012 11:06:06 PM

Hopefully the government will hold onto the stock until China buys it and the price goes up then the government can recover taxpayers money because as long as the present GM execs are running GM, the people will never get back all their money and if Romney gets in, the people will never recover any of the taxpayers bailout money.
Profile Pic
bvrbill
Champion Author Eugene

Posts:6,802
Points:1,028,100
Joined:Jul 2011
Message Posted: Sep 19, 2012 11:04:41 PM

I wont buy another GM vehicle.

[Edited by: bvrbill at 9/20/2012 12:06:35 AM EST]
Profile Pic
pepinoNC
Champion Author Raleigh

Posts:4,517
Points:1,163,320
Joined:May 2011
Message Posted: Sep 19, 2012 11:04:30 PM

Romney said he would sell at a loss, why isn't anyone supporting that?
Profile Pic
cheapchickKY
Champion Author Lexington

Posts:6,605
Points:1,305,945
Joined:Jan 2011
Message Posted: Sep 19, 2012 11:03:41 PM

What's the hurry?
Profile Pic
Ray_10589
Champion Author New York

Posts:7,131
Points:1,676,360
Joined:May 2009
Message Posted: Sep 19, 2012 11:03:21 PM

was not a good idea
Profile Pic
Cellsite
Champion Author Appleton

Posts:3,095
Points:707,045
Joined:Jun 2012
Message Posted: Sep 19, 2012 11:03:18 PM

Yuk
Profile Pic
jimpricehunter
Champion Author Dallas

Posts:1,270
Points:466,730
Joined:Aug 2012
Message Posted: Sep 19, 2012 11:02:56 PM

The founding articles of this nation make it pretty clear that the government was never supposed to become involved in running or purchasing and trading private businesses. Well Barack Obama is certainly not the first president to violate that founding premise but no one has done so in such a grand blatant fashion as him!
Profile Pic
radiorumor
Champion Author Texas

Posts:5,060
Points:1,260,275
Joined:Feb 2011
Message Posted: Sep 19, 2012 11:02:44 PM

See, this was a bad idea
Profile Pic
BAMBAM197105
All-Star Author Pennsylvania

Posts:592
Points:104,835
Joined:Sep 2012
Message Posted: Sep 19, 2012 11:02:31 PM

OK
Profile Pic
shores4now
Champion Author Kentucky

Posts:4,799
Points:1,033,775
Joined:Jul 2009
Message Posted: Sep 19, 2012 11:00:48 PM

Ok
Profile Pic
joeschmo12
Champion Author New York

Posts:1,387
Points:382,380
Joined:Mar 2012
Message Posted: Sep 19, 2012 10:55:48 PM

Ha
Profile Pic
ExplorerWA
Champion Author Washington

Posts:5,998
Points:1,232,580
Joined:Feb 2011
Message Posted: Sep 19, 2012 10:54:46 PM

They have no need need to sell so why bother.
Profile Pic
southrob
Champion Author Tucson

Posts:5,853
Points:1,169,150
Joined:Mar 2011
Message Posted: Sep 19, 2012 10:51:08 PM

and gas still goes up
Profile Pic
papa56NC
All-Star Author North Carolina

Posts:725
Points:142,760
Joined:Apr 2012
Message Posted: Sep 19, 2012 10:48:15 PM

Git-ur-dun
Profile Pic
JohnLM
Champion Author Orlando

Posts:1,114
Points:622,040
Joined:May 2010
Message Posted: Sep 19, 2012 10:47:08 PM

How did thy get into this ess?
Profile Pic
gerreg
Champion Author Nebraska

Posts:1,133
Points:2,089,815
Joined:Jun 2007
Message Posted: Sep 19, 2012 10:44:27 PM

OK
Profile Pic
WIPACKERFAN
Champion Author Chicago

Posts:11,134
Points:2,351,930
Joined:Aug 2005
Message Posted: Sep 19, 2012 10:42:19 PM

Get to it GM
Post a reply Back to Topics