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Old 08-02-2010, 10:24 PM   #23
fielderLS3


 
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Drives: 2016 Mazda6, 2011 Mustang 5.0
Join Date: Mar 2010
Location: Portage, Wisconsin
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Quote:
Originally Posted by DGthe3 View Post
Why do they matter, GM already is profitable.
Quote:
Originally Posted by a_Username View Post
GM has turned profitability, but I do not have much faith in the larger, more important companies such as Fannie Mae and Freddie Mac to do the same.
I recognize they are profitable now, partly as a result of a product lineup that was planned and engineered years before the bailout. Stock is a forward looking investment, and looking into the future, I have concerns. I have no faith in a future product lineup planned and executed under government ownership. I know of no government owned entities that have ever been successful in the long run.

As a potential investor, I would also be greatly concerned by the UAW, which is already agitating to roll back their concessions and start getting "their share" again after just a single profitable quarter. It's not hard to foresee where all this will end, because we already saw it last year.
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