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November 3, 2010
No More Government Motors?
The federal government plans to cuts its stake in General Motors from 61% to 35 %. Apparently this cutting the size of government thing really took hold after yesterday's election.
According to the New York Times,
In a regulatory filing, G.M. disclosed that the Treasury Department planned to cut its ownership stake to about 35 percent, down from almost 61 percent. That has long been an important marker for the company, which has sought to shed a “Government Motors” stigma that it believes has weighed down car sales.
The filing with securities regulators on Wednesday suggests that G.M. has a market value of about $41 billion, short of the valuation needed for taxpayers to make money on the government bailout. But government officials have emphasized that Treasury will sell its stake over time, and a rising stock price after the initial sale will help its return.
Okay, so I guess it won't happen immediately.
--JPF
November 3, 2010 in Government and Business | Permalink
Comments
If the Fed continues to flood the economy with newly printed money (now called "quantitative easing") then sooner or later the stock market has to go up, and it's even possible that GM may share in this artificial growth. Who knows, Bernanke may be able to get GM's stock price up to what our government paid for it. Even with an enormous market overhang of stock we can hardly wait to dump. I think that I'll let someone else have this investment opportunity.
Posted by: Arthur O. Armstrong | Nov 4, 2010 7:49:58 AM
