How many reports have you seen about how well the stock market is doing? Seeing as it has been propped up by the Feds for several years why wouldn’t it be doing great, and it is. And yes, that bubble too must burst, with little effect on the Governing class and a whole lot of hurt for the rest of us. But the Democrat plan all along was to pretend they were pro-economy while making sure they did not appear to be in charge when it falls apart as it must. This means that they could have the White House and a majority control of congress and still insist that when it failed, whatever it is, it is not their fault.
Having had majority control of the Government for the past seven years has not stopped them from blaming everyone else for things they passed proudly that have since failed or will. Any future debacle will be similarly spun.
So to hear a report that the Treasury is selling off GM stock it never should have bought, at a loss of almost $10 billion (so far) is not at all surprising, and proof once again that the folks who prefer limited government might just have a better idea than the progressive Democrats who hailed the bailout of Unions and cronies GM at the expense of taxpayers; an expense that is destined to grow.
Washington— The U.S. Treasury has booked a $9.7 billion loss on its $49.5 billion bailout of General Motors Co. on the sale of nearly all of its shares it received as part of its $49.5 billion bailout.
In a quarterly report to Congress Tuesday, the Special Inspector General overseeing the $700 billion Troubled Asset Relief Program bailout fund disclosed that the Treasury had realized a significant loss on its sale of most of its 60.8 percent stake in GM. Through Sept. 30, Treasury sold 811 million shares of the 912 million shares it received in the automaker as part of its 2009 bankruptcy restructuring.
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Treasury would need to get $147.95 on its remaining shares to break even. That’s not going to happen: GM’s stock closed Wednesday at $35.80, up $0.21, or 1 percent. At current trading prices, the government’s remaining stake is worth about $3.6 billion. At current stock prices, taxpayers would lose about $10 billion on the bailout when all the stock is unloaded.
I’d like to know when we will stop financing the products at GM and incentivizing their purchase with additional tax-payer dollars, a practie that has cost us another boat-load of cash, all for but one puspore; to keep the Democrat voting auto-workers at GM on the payroll for as long as possible.
