Taxpayers take it in the garage - big shock

Mr. Deez

Mr. Deez

Beer Prophet
Looks like the government has sold most of its interest in GM at a $9.7B loss.

This deal just further reinforces why bailouts are f'ed up and why the government shouldn't get tangled up in the business world. It is clear to me that nobody in this deal was truly representing the taxpayers' interest.

A few questions. First, if the government is taking a loss on the sale, then why is it selling? GM has emerged from bankruptcy a fairly profitable company. Why not hold onto the stock longer?

Second, if the government thinks the stock price isn't likely to go up, then who's getting shitcanned for negotiating such a crappy deal in the first place? In this deal, GM and its shareholders owned part of a company that was headed for catastrophe. They had no cards at all. The government was holding the money. It should have had almost absolute power to dictate the terms. This ****'s not rocket science. Get as many shares for the money as possible so that when you sell, it's easier to make a profit.

Ugh.
 
Ok BI
let's say the taxpayer getting hosed is worth it because people got to keep their jobs.
Why then would we let ANY company go bankrupt if those companies employ anyone?

Why are the employees at GM more worthy of being saved than the employees at ACME which employed 50 or 25 or10?
and who now don't have jobs and are getting unemployment benefits?
 
Everybody keeps forgetting all the debt that was written off as well. All the so called parts suppliers got screwed beyond belief as they were never and will never be paid for services rendered.

Letting those people go on the welfare rolls would have been better for this country in the long run. Another car company from around the world would have won the Stalking horse bid and those people would have been put back to work at realistic wages and benefits, lowering the costs of the cars across the country.
 
Why BI?
maybe we got confused which can happen.

so you posted
"Shouldn't that 9.7B be weighed against the costs/ramifications of all of those people on unemployment, followed by welfare?"

BI when YOU weigh it do you think it was worth it to keep " all of those people" employed?
 
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