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Obama Administration Loses $9.7 Billion on GM shares
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Bones McCracker
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PostPosted: Wed Oct 30, 2013 1:09 am    Post subject: Obama Administration Loses $9.7 Billion on GM shares Reply with quote

I thought Obama said we stood to make money on the GM bailout. This loss of $9.7 Billion ignores the foregone interest (which will continue to build forever as part of interest on our National debt, since we used deficit spending to pay for this).
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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.

The taxpayers’ ownership stake in the Detroit-based automaker — swapped for more than $40 billion in loans, was initially 60.8 percent, but is now down to about 7 percent, the Treasury said. “Because the common stock sales have all taken place below Treasury’s break even price, Treasury has so far booked a loss of $9.7 billion on the sales,” the report said.

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.

http://www.detroitnews.com/article/20131029/AUTO0103/310290032/Feds-report-9-7B-loss-GM-shares
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PostPosted: Wed Oct 30, 2013 2:27 am    Post subject: Reply with quote

If a CEO gambled and lost that much money, the government would be investigating for liability. Lucky for Obama, he's Untouchable.
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richk449
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PostPosted: Wed Oct 30, 2013 2:35 am    Post subject: Reply with quote

pjp wrote:
If a CEO gambled and lost that much money, the government would be investigating for liability. Lucky for Obama, he's Untouchable.

Are you under the impression that Obama bailed out GM because he thought it was a good money-making opportunity?
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PostPosted: Wed Oct 30, 2013 2:50 am    Post subject: Reply with quote

Speaking of debt, I heard a dude ranting against teabaggers who want to shrink the government at any cost say that we should be increasing the national debt now because interest rates are so low! This was on fair and balanced NPR, of course.
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PostPosted: Wed Oct 30, 2013 3:20 am    Post subject: Reply with quote

richk449 wrote:
Are you under the impression that Obama bailed out GM because he thought it was a good money-making opportunity?
Are you under the impression it was ever a good idea?
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PostPosted: Wed Oct 30, 2013 3:22 am    Post subject: Reply with quote

richk449 wrote:
pjp wrote:
If a CEO gambled and lost that much money, the government would be investigating for liability. Lucky for Obama, he's Untouchable.

Are you under the impression that Obama bailed out GM because he thought it was a good money-making opportunity?

It would be an easy mistake to make considering how often they boasted about "making money" on the "investment."
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PostPosted: Wed Oct 30, 2013 3:23 am    Post subject: Reply with quote

bogamol wrote:
Speaking of debt, I heard a dude ranting against teabaggers who want to shrink the government at any cost say that we should be increasing the national debt now because interest rates are so low! This was on fair and balanced NPR, of course.
It's like justifying spending $1,500 on shoes and a purse because they were listed as 30% off. Or buying the 120" TV with no interest for 90 days (that you won't pay off for 30 months).
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PostPosted: Wed Oct 30, 2013 4:11 am    Post subject: Reply with quote

dmitchell wrote:
richk449 wrote:
pjp wrote:
If a CEO gambled and lost that much money, the government would be investigating for liability. Lucky for Obama, he's Untouchable.

Are you under the impression that Obama bailed out GM because he thought it was a good money-making opportunity?

It would be an easy mistake to make considering how often they boasted about "making money" on the "investment."

True, but you would have to be an absolute sucker to believe that. And I wouldn't dare accuse pjp of being a sucker.
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PostPosted: Wed Oct 30, 2013 6:34 am    Post subject: Reply with quote

richk449 wrote:
pjp wrote:
If a CEO gambled and lost that much money, the government would be investigating for liability. Lucky for Obama, he's Untouchable.

Are you under the impression that Obama bailed out GM because he thought it was a good money-making opportunity?

His real motives are not the question. It was indeed presented as something that would not add to the national debt or increase the taxpayer burden. In order to do so, it would have to achieve an ROI greater than the U.S. Government's WACC, which we can simplistically assume equal to the average rate if interest on its debt.

Why haven't I seen a story about this on NBC Nightly News? They fapped all over themselves about the bank bailouts being paid back.
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Butts McCokey
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PostPosted: Wed Oct 30, 2013 1:50 pm    Post subject: Reply with quote

I never understood why GM was bailed out. The world wouldn't have missed GM unlike the banks .
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PostPosted: Wed Oct 30, 2013 1:56 pm    Post subject: Reply with quote

cokehabit wrote:
I never understood why GM was bailed out. The world wouldn't have missed GM unlike the banks .
DEtroit is already a shithole... if they were not bailed out then Detroit would have accelerated towards Robocop.
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PostPosted: Wed Oct 30, 2013 3:26 pm    Post subject: Reply with quote

cokehabit wrote:
I never understood why GM was bailed out. The world wouldn't have missed GM unlike the banks .
Votes. More specifically the employees. Most are union members brainwashed and forced to support Democrat candidates through their union dues. The bailout demonstrated solidarity. Don't you recall the "jobs created or saved" mantra?
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