Quote:
Originally Posted by The_Blur
Several of you have posted this same response multiple times in multiple threads.
I will, therefore, respond again. The US and Canadian governments have opted to, instead of receiving cash for their support, take a stake in the company. They believe that GM will be profitable and successful—so successful in fact that this stock will be more valuable than the interest rate on the loan that would have been offered. When sold, the government expects to get this money back.
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Utter nonsense. You conveniently omit the enormous unfunded liabilities from UAW retiree pension and health-care plans. You also ignore the market cap problem, investors will not blindly believe the press releases and purchase enough stock, at high enough prices to repay (us) the treasury.