GM IPO seen as victory for Obama on auto bailout

[OntarioVanMan]

one to put chef to work...*LOL*

GM IPO seen as victory for Obama on auto bailout | Wheels.ca

WASHINGTON — General Motors Co. standing on its own again in the capital markets would be a victory for President Barack Obama as he begins to trumpet auto bailouts as a policy success ahead of the November elections.

The U.S. Treasury is heavily involved in the mechanics of selling its 60 per cent federal stake in GM and shedding the "Government Motors" label. But the White House says it has no role in the share offering expected to be unveiled next week and floated on Wall Street this fall.

 

[chefdennis]

There is nothing to keep busy with...they paid back the 1st bailout with another loan from the fed so they didn't really pay back a thing....the Fed gov will still own 49% of GM stock that they will not let go of and the IPO is what 11% plus whatever the uaw decides to let go of...

Then take a look at their sales...even with their FLEET sales to their own companies and the rental car market, the sales to dealers and to the public are down...

Nope nothing to brag about here...but that won't stop barry from the BS that all is good...he still telling whoever will listen that the economy is fixed and we are over the worse...right...

 

[muttly]

Since Government Motors is standing on it's feet again can we have our 40 billion back? Just asking....

 

[chefdennis]

big or small, it is all taxpayer dollars that they should have never gotten to begin with....then to bs everyone that they paid it back, when all they did was get another loan from barry in this hand and then hand it back as payment for the 1st bailout....I still hope they go belly up....

 

[Turtle]

The problem with them, and the rest of the auto industry going belly up is, there's nothing to take its place, and it would likely ruin the country. Too much history of shipping manufacturing jobs overseas ensured that. It might make a point, and it might make you feel good in they were to go belly up, but we'd all be paying dearly for it in the end, and for a really long time. Like it or not, bailing them out was the lesser of two evils.

 

[layoutshooter]

This is just short term. The REAL cost will be seen down the road as the government takes more control of the economy and private industry. The end result will be the same OR WORSE than if they had failed and it will cost us even more in the long run. I DO NOT trust the government to do ANYTHING right!! The proof is in the pudding. They have failed at just about everything they have tried so far, no reason for this to go any better.

 

[chefdennis]

them going belly up would hurt short term. They would then beable to dump the union contracts and the joke management. Then cut wages and benefits and come back as a better company. They wouldn't be gone forever....

 

[greg334]

How do you figure that my shelled freind?

IF they, GM or Chrysler went under, Toyota, Honda, Ford and others would have stepped in and bought the assets which also means they would have kept the product lines with many of the workforce.

People still need cars, Toyota seems to be having no problem selling cars, even after the issue of the runaway Toyota were made a big deal of.

It has yet to be determined if the bail out of these two poorly managed companies helped or hurt the country.

People close to GM think it really hurt the country by forcing through a bankruptcy without the reorg/cleaning of the house, but more importantly the lack of trust built into the new company by screwing all the investors of the old company. The new company isn't really "selling" cars, it is still losing market share, selling the idea that they lead in electric car technology (I think Nissan may lead) but more importantly focused on foreign markets (China and GM without Opel in the EU market) while ignoring the home market.

If they went through a normal process of bankruptcy, it would have faired better without the issues or scam like quality that these "loans" have.

An IPO will not pay back the $58 billion plus interest. The tax payer will get screwed again, there is serious talk about forgiving the entire balance on the loan to help push the post IPO price up, and if this happens, the only ones who will make money will be the insiders and the union.

 

[layoutshooter]

How do you figure that my shelled freind?

IF they, GM or Chrysler went under, Toyota, Honda, Ford and others would have stepped in and bought the assets which also means they would have kept the product lines with many of the workforce.

People still need cars, Toyota seems to be having no problem selling cars, even after the issue of the runaway Toyota were made a big deal of.

It has yet to be determined if the bail out of these two poorly managed companies helped or hurt the country.

People close to GM think it really hurt the country by forcing through a bankruptcy without the reorg/cleaning of the house, but more importantly the lack of trust built into the new company by screwing all the investors of the old company. The new company isn't really "selling" cars, it is still losing market share, selling the idea that they lead in electric car technology (I think Nissan may lead) but more importantly focused on foreign markets (China and GM without Opel in the EU market) while ignoring the home market.

If they went through a normal process of bankruptcy, it would have faired better without the issues or scam like quality that these "loans" have.

An IPO will not pay back the $58 billion plus interest. The tax payer will get screwed again, there is serious talk about forgiving the entire balance on the loan to help push the post IPO price up, and if this happens, the only ones who will make money will be the insiders and the union.

Obama was involved was he not? He has NO regard for us "working stiffs" unless we were in a union and he will "stick it" to them too if someone offers him a bigger bribe, er, campaign contribution.

 

[greg334]

Actually this morning I was told that the GM bailout was started by Bush adminstration officials - not Obama.

 

[layoutshooter]

Actually this morning I was told that the GM bailout was started by Bush adminstration officials - not Obama.

I said involved, not started. Did not like Bush either. It was Obama who appointed the unconstitutional "auto czar".

 

[aristotle]

Panther Expedited Services is announcing their own IPO. You can read about it at PES homepage, click on "news." Wonder what prompted this decision?

 

[muttly]

Actually this morning I was told that the GM bailout was started by Bush adminstration officials - not Obama.

Yes Bush started it,but wasn't it meant to be a LOAN and not a BAILOUT? There is a difference.

 

[muttly]

yep...the bailouts were coming either the GOP or the Dems...so that tells ya something...that kicking out the Dems will do no good...same ole, same ole...

Not even close to be correct. I don't buy that bogus argument that there isn't a dimes worth of difference. The Dem party is so far gone to socialist side. The Repubs are at least trying to to get more conservatives into the party like Rand Paul,Sharon Angle,Marco Rubio etc. I don't see Dems doing that .