Chevrolet Corvette Stingray C7 Forum - View Single Post

Craig · 04-26-2010, 07:15 PM

Pot, meet kettle. People certainly do believe whatever they want to believe, that's for sure. So there's ONE thing we agree on.

In spite of these loans being "repaid" GM still owes the taxpayers around $43.5 billion dollars. We're told this will be paid back when the government sells their 61% stake sometime after the IPO. To recoup the full $43.5B will require the new GM to have a market capitalization of around $71 billion.

GM's highest market cap in it's history? $52.5 billion, in 2000. So they only need to exceed that by 40% or so. This doesn't sound like too rosy an outlook for me.

The government shares GM's optimism. The DOT & Treasury have revised estimated taxpayer losses from the auto bailouts down to "only" around $8 billion which is still quite optimistic IMO. But hey, what's a few billion amongst friends. In 21st century Bailout Nation that's hardly more than a rounding error.

I stand by all the information I posted in this and the other thread. What I will do is apologize for the rude and confrontational way some of it was presented, with the caveat that some of the other contributors are guilty of this as well.

04-26-2010, 07:15 PM	#17
Craig Drives: 2023 SLE Join Date: Jan 2007 Location: Oregon Posts: 315	Pot, meet kettle. People certainly do believe whatever they want to believe, that's for sure. So there's ONE thing we agree on. In spite of these loans being "repaid" GM still owes the taxpayers around $43.5 billion dollars. We're told this will be paid back when the government sells their 61% stake sometime after the IPO. To recoup the full $43.5B will require the new GM to have a market capitalization of around $71 billion. GM's highest market cap in it's history? $52.5 billion, in 2000. So they only need to exceed that by 40% or so. This doesn't sound like too rosy an outlook for me. The government shares GM's optimism. The DOT & Treasury have revised estimated taxpayer losses from the auto bailouts down to "only" around $8 billion which is still quite optimistic IMO. But hey, what's a few billion amongst friends. In 21st century Bailout Nation that's hardly more than a rounding error. I stand by all the information I posted in this and the other thread. What I will do is apologize for the rude and confrontational way some of it was presented, with the caveat that some of the other contributors are guilty of this as well. Last edited by Craig; 04-26-2010 at 08:57 PM.