How GM IPO Proves the Tea Party Wrong

Maybe the IPO should also include the bondholders and stock owners who were screwed with the original deal? Not even pennies on the dollar did they get.

JMC wrote:

JusSayin wrote:

LadyJazzer wrote: If not for the bailout, their company would not exist today... Period....

And you base this statement on what direct personal knowledge, experience and expertise?

Common sense?

Sense...and reason and intelligence...are anything but common...especially here.

GW Bush was responsible for $19-billion of the GM bailout; Obama threw in an additional $30-billion. Both sold out to their Wall Street cronies; and in Obama's case, the unions who pull some of his strings. GM had plenty of other options and could have pared back significantly in wasteful costs and unused assets. Excellent and relevant product was on the way. Instead, the big winners will be Morgan Stanley, JPMorgan, Bank of America Merrill Lynch and Citigroup Inc...the GM IPO underwriters.

SS109 wrote: Maybe the IPO should also include the bondholders and stock owners who were screwed with the original deal? Not even pennies on the dollar did they get.

Why? They made a bad investment and that is always a risk. No risk, no return. In this case GM was an important part of the national infrastructure so the President made the decision to extend a loan that would preserve the hard capital of GM. The executives and the shareholders were let go as there decisions were what had destroyed this company. It's quick recovery shows clearly the wisdom of this action. I make my investments knowing well that I could lose every penny. If you don't know that then I hope to hell you're not in any way in the market.

ckm8 wrote: The executives and the shareholders were let go as there decisions were what had destroyed this company. It's quick recovery shows clearly the wisdom of this action.

Unbelievably--though understandably--naïve.

Really? In what way? Please elucidate me.

ckm8 wrote: Really? In what way? Please elucidate me.

Not sure why I’m wasting my time, but here’s the short version…

No one can seriously question former GM CEO Rick Wagoner’s incompetence…in a long string of incompetent company executives. But from there, your argument falls apart. The GM shareholders were not calling the shots, making product development decisions, or directing investment decisions. Shareholders did not destroy the company. However many shareholders, including tens of thousands retirees, were hung out to dry by the bailout decision and methodology. They were not ‘let go’ as you put it. And GM’s ‘quick recovery’ could have been achieved without bailout money. It would have been uglier and painful, but could have been pulled off without screwing the loyal people who backed the company; while rewarding Wall Street in yet another example of pure political cronyism.

There...you're elucidated.

The Shareholders vote do they not? I'm sorry for the retirees as I found myself in the same position when Qwest stock dropped to almost nothing. It sucks, but putting all the workers out of a job wouldn't have helped them either.

It appears that the Righties are even ticked-off because the money is probably going to be paid back to the Government...with interest! Boy, you just can't make some people happy...

They're ticked because the rich guys that caused the problem paid instead of the regular working joes. That upsets their universe.

sure ckm8, the liberals had nothing to do with anything. Free handouts, free this and free that! Thanks for the laugh tonight!