NEW YORK/DETROIT, Sept 3 (Reuters) - The U.S. government is likely to take a loss on General Motors Co [GM.UL] in the first offering of the automaker's stock, six people familiar with preparations for the landmark IPO said.
Subsequent offerings of the government's holdings may be profitable depending on how investors trade the newly listed stock, the sources said.
But the question of whether taxpayers are ultimately made whole on GM's $50 billion bailout could be left open for years, the people said.
UPDATE 2-Taxpayers likely to face initial loss on GM IPO-sources | Reuters
It's fairly common for IPO's to have a discounted first run, to garner interest. On this one... it's just, well knew it was coming.Oh yes liberals, keep touting how well GM is doing thanks to Obama....a loss on opening IPO....Bailout open for years....Yeah, very good.....:roll:
j-mac
It's fairly common for IPO's to have a discounted first run, to garner interest. On this one... it's just, well knew it was coming.
You would think conservatives would be happy to see the federal government beginning the process of selling off its stake in a revived and renewed and profitable General Motors. But, hey, its another chance to tear down the Obama administration that they just can't pass up even if at the same time they're tearing down a great American corporation, a cornerstone of the American capitalist system.
You would think conservatives would be happy to see the federal government beginning the process of selling off its stake in a revived and renewed and profitable General Motors. But, hey, its another chance to tear down the Obama administration that they just can't pass up even if at the same time they're tearing down a great American corporation, a cornerstone of the American capitalist system.
Six months ago, if the pundits were any indication, something like this would have been impossible to begin with. They were all convinced the President's sole purpose through all of this was to nationalize the auto industry.
Now that he's working on getting the government out of GM, it's time to find something else to bitch about.
“A journey of a thousand miles began with a single step.” — Lao-tzu
Maybe I just don't understand this thing, but how is offering GM as a public company going to get the government out of ownership, when the article clearly states that we could be on the hook for years to come?
j-mac
Because the government is beginning to sell what it bought when it bailed GM out.
In other words, the government is doing the opposite of what the pundits swore up and down it would do.
Ok, makes sense. But how much of the controlling shares is the government selling?
j-mac
Because the government is beginning to sell what it bought when it bailed GM out.
In other words, the government is doing the opposite of what the pundits swore up and down it would do.
Not only would unloading the stock give Obama a windfall to tout to voters vis-a-vis repaying the bailout money, but it’d reassure the public that he meant it when he famously said long ago, “I don’t want to run auto companies.” (It’d also get him free and clear of a certain electric lemon that shall remain nameless.) If you want to rebut the talking point that you’re a socialist, there are worse ways to do it than by putting ownership of America’s largest auto manufacturer back into public circulation. And yet … no commitment yet by the Treasury Department to sell any of its shares. Why not?
Hot Air » G.M. CEO to feds: We’re tired of being “Government Motors” so how about selling your shares?
It looks like the government will be trying to sell about 1/3 of its holding in GM
It looks like the government will be trying to sell about 1/3 of its holding in GM
Government Motors' all-electric car isn't all-electric and doesn't get near the touted hundreds of miles per gallon. Advertised as an all-electric car that could drive 50 miles on its lithium battery, GM addressed concerns about where you plug the thing in by adding a small gasoline engine to help maintain the charge on the battery as it starts to run down. It was still an electric car, we were told, and not a hybrid on steroids.
That's not quite true. The gasoline engine has been found to be more than a range-extender for the battery. Volt engineers are now admitting that at speeds near or above 70 mph, the Volt's gasoline engine will directly drive the front wheels along with the electric motors. So it's not an all-electric car, but rather a pricey $41,000 hybrid that requires a taxpayer-funded $7,500 subsidy to get car shoppers to look at it.
We heard GM's CEO Fritz Henderson claim the Volt would get 230 miles per gallon in city conditions. Popular Mechanics found the Volt to get about 37.5 mpg in city driving, and Motor Trend reports: "Without any plugging in, the Volt should return fuel economy in the high 30s to low 40s." Car and Driver reported that "getting on the nearest highway and commuting with the 80-mph flow of traffic yielded 26 miles; a fairly spirited backroad loop netted 31; and a carefully modulated cruise below 60 mph pushed the figure into the upper 30s."
Oh yes liberals, keep touting how well GM is doing thanks to Obama....a loss on opening IPO....Bailout open for years....Yeah, very good.....:roll:
j-mac
I didn't approve of the circumstances of the initial bailout, but I am glad that GM is moving back to the private sector. IPO's normally are discounted because of the risk involved, and this case is riskier than most. I will accept reasonable losses as the necessary cost of getting the government out of the automobile business.
It kind of reminds me of the $180 billion taxpayers lost on The 80s Savings and Loan collapse created by Reagan. Or the billions lost on the bank bailouts and FDIC costs. Not to mention the trillion spent on Iraq that taxpayers will pay.
Liberals-conservatives, they all cost taxpayers a huge chunk of change.
You would think conservatives would be happy to see the federal government beginning the process of selling off its stake in a revived and renewed and profitable General Motors. But, hey, its another chance to tear down the Obama administration that they just can't pass up even if at the same time they're tearing down a great American corporation, a cornerstone of the American capitalist system.
Don't equate one poster as representing all Conservative's views, it's a serious error.
Obama has moved to take over a lparge part of the auto industry, all of the medical care industry, and may now take over the internet and by then will control over 30% of our economy, and his Czars are talking about forcing Conservative Radio to either sell out or pay fines to support failed Leftist Radio.
What Obama has done and is doing while he goes around lying his ass of about he and his minions are doing and planning.
I for one will be happy as all get out the minute Obama gets out of private business and stops the spending of money we don't have for projects that don't work.
Here is one rundown on the GM bailout that belies the rather sunny outlook some are painting:
GM's Phony Bailout Payback - Reason Magazine
If it's on a blog it must be true.
Reason is the monthly print magazine of "free minds and free markets." It covers politics, culture, and ideas through a provocative mix of news, analysis, commentary, and reviews. Reason provides a refreshing alternative to right-wing and left-wing opinion magazines by making a principled case for liberty and individual choice in all areas of human activity.
About Reason - Reason Magazine
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?