Obama refuses to sell GM stocks at great loss
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Obama refuses to sell GM stocks at great loss General Motors wants the Obama Administration to dump its shares in the car maker at an excellent loss to the taxpayers. It says the "government motors" stigma is damaging its popularity. The Administration, however, is holding firm. Have you been trying to sell or buy a used or new car? If this relates to you, check out Gus Johnson Ford!
Just a little bit of General Motors stock
General Motors hopes to pay off its auto loans in Michigan, so to speak, and it hopes to pay off its 26.5 percent share that the Obama administration has in the company presently. General Motors got a $50 billion bailout in 2009 to stay away from bankruptcy, but the bad stigma makes General Motors want to get rid of it.
If the deal were made at the current price, working class individuals would lose $15 billion since the price per share has decreased a ton. When the government bought the shares in November 2010, the stock was $33 per share. Now, it is $23.14 per share, which is a $9 share per stock. The U.S. Treasury Department does not want that sort of loss and is unlikely to sell at that price.
In order to break even, the Treasury Department would have to sell its leftover shares at $53 apiece. That is likely not to occur anytime soon in this economy. The Treasury Department states it will consider letting the stock go when the selling price rises into the $30s.
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Still selling a lot of cars
It is not a bad thing to be ranked number two in the world for best-selling car maker, and that is where GM is. It regained its title as the first one until it was taken from the company later by Toyota.
Political stigma
As soon as Mitt Romney takes officer, if he gets elected, he intends to sell off all remaining GM stock no matter what the loss is.
The Obama administration cannot afford a big blow that would come if it sold off all the stock. The election is only a couple of months away, and since the administration prides itself on saving the automotive industry successfully, it would all be broken to pieces with this type of loss.
Is not important with success
A General Motors spokesperson explained that General Motors is not too concerned, according to the Wall Street Journal. He said:
"The Treasury will make its own decisions about their stake in the company like any other owner. Our job is to produce great cars and solid profits."
If the automaker, poised to completely overhaul 70 percent of its lineup, continues to be aggressive and innovative in the marketplace, its success will grow and so will the price of its stock. Then the Treasury Department will be willing to sell control back to the car maker without shirking its promise to the American working class individuals.
Sources
Forbes
<a href="http://online.wsj.com/article/SB10000872396390443995604578000754035510658.html"> Wall Street Journal</a>
<a href="http://www.marketwatch.com/story/obamas-wistful-gm-exit-strategy-2012-09-17?link=MW_pulse">Market Watch</a>
Just a little bit of General Motors stock
General Motors hopes to pay off its auto loans in Michigan, so to speak, and it hopes to pay off its 26.5 percent share that the Obama administration has in the company presently. General Motors got a $50 billion bailout in 2009 to stay away from bankruptcy, but the bad stigma makes General Motors want to get rid of it.
If the deal were made at the current price, working class individuals would lose $15 billion since the price per share has decreased a ton. When the government bought the shares in November 2010, the stock was $33 per share. Now, it is $23.14 per share, which is a $9 share per stock. The U.S. Treasury Department does not want that sort of loss and is unlikely to sell at that price.
In order to break even, the Treasury Department would have to sell its leftover shares at $53 apiece. That is likely not to occur anytime soon in this economy. The Treasury Department states it will consider letting the stock go when the selling price rises into the $30s.
To Get The Greatest Deal On A Used Or New Car, Van, Truck or SUV Stop By Spokane Cars For Sales Here
Still selling a lot of cars
It is not a bad thing to be ranked number two in the world for best-selling car maker, and that is where GM is. It regained its title as the first one until it was taken from the company later by Toyota.
Political stigma
As soon as Mitt Romney takes officer, if he gets elected, he intends to sell off all remaining GM stock no matter what the loss is.
The Obama administration cannot afford a big blow that would come if it sold off all the stock. The election is only a couple of months away, and since the administration prides itself on saving the automotive industry successfully, it would all be broken to pieces with this type of loss.
Is not important with success
A General Motors spokesperson explained that General Motors is not too concerned, according to the Wall Street Journal. He said:
"The Treasury will make its own decisions about their stake in the company like any other owner. Our job is to produce great cars and solid profits."
If the automaker, poised to completely overhaul 70 percent of its lineup, continues to be aggressive and innovative in the marketplace, its success will grow and so will the price of its stock. Then the Treasury Department will be willing to sell control back to the car maker without shirking its promise to the American working class individuals.
Sources
Forbes
<a href="http://online.wsj.com/article/SB10000872396390443995604578000754035510658.html"> Wall Street Journal</a>
<a href="http://www.marketwatch.com/story/obamas-wistful-gm-exit-strategy-2012-09-17?link=MW_pulse">Market Watch</a>
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