Monday, August 20, 2012

General Motors Heading For Bankruptcy Again.

Forward!

[T]he 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.

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.
So it could be said that GM stock has lost over half their value since the government took over. 

Related:  "Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry." [emphasis mine]




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