Quote:
Originally Posted by Tal
Saving a megacorp and all of it's employees from collapse is generally good, that's easy. Well if the corp wasn't addressing the reasons for it's failure it might not be good, but regarding this specific bailout GM and the UAW have made serious progress in the last few years, I'm not sure they've turned the corner but they are close to doing so. Adding billions and billions to the national debt is a bad thing though, also easy. The government getting involved in who should have their job saved and who shouldn't is disturbing. I'm not looking to get into debate over the bailouts, simply pointing out that it isn't a straight forward good/bad debate.
|
According to this amazing new GM commercial, all dept with interest has been paid back in full five years in advance......
Simply amazing isn't it?
http://news.yahoo.com/s/afp/20100421...anygmpublicaid
The payments however do not include much higher loans made to the company under its former guise, being slowly wound down through the bankruptcy process. Oh wait, that wasn't in the commercial so it can't be true.. Why would the commercial leave that part out? Hmm..
Facts:
GM only paid $6.7 Billion of over $40 Billion of our money.
$6.7 Billion is what they owed in cash....the rest will come from GM stock proceeds. However, to get our money back GM's stock would have to go to $40 per share for US to break even. And selling the stock you have to pay more taxe's if there are earnings..hmm..
http://www.squidoo.com/buy-gm-stock
GM was once the blue chip of blue chips stocks, but don't try to buy GM stock purely on sentimental reasons. We're all familiar with the news concerning the bankruptcy proceedings for GM, and the deal that gave a majority of control to the US and Canadian governments. Many of the stipulations of this deal involve large amounts of debt that must be payed off before any amount will be reimbursed to shareholders.
Stock value today for GM is .75 cents.. Will it hit $40 a share anytime soon? My guess is you'd have a better shot at getting hit by lightning.
Lowering labor and operating costs overall and making profits will be the only way GM can ever even begin to break even which in turn all the profits from that point on will pay back those former stock holders who got the worst end of the deal. They are not holding their breath thinking they will ever see that money lost again. And most of those stockholders were the fat cats anyways, nobody cares about them since they still have enough money in the bank.
Well, there is a long way to go before any of these above situations occur. The only thing happening right now is a propaganda machine trying to make most people believe everything is going great with GM and all the bailout money with interest has been paid back in full. Do you still want to believe this great news after reading factual numbers and information that they did not include in the commercial? That is up to you...