U.S. Taxpayers Recover Billions in Sale of G.M. Stock

[fencesitter]

Source: NY Times

American taxpayers’ ownership of General Motors was halved on Wednesday, and billions of dollars in bailout money was returned to the federal government, as a result of the nation’s largest initial stock offering ever.

The offering, which raised $23.1 billion, is bigger and more ambitious than had once seemed possible. But the recently bankrupt automaker will have to build on its revival for the government to recoup its entire $50 billion investment and validate the Obama administration’s decision to keep G.M. from collapsing.

The new shares start trading on Thursday at $33 each. To break even, the Treasury Department will need to sell its remaining 500 million shares at an average price of $53 each in the months and years to come. And while the administration may retain great influence over the company, it may not be able to keep stoking the enthusiasm investors have shown for G.M. stock in recent days.

Still, now that General Motors has shown that it can be profitable, a complete exit by the government could happen even within the next two years. With the offering, G.M. is shedding its ties to the government faster than expected, cutting the Treasury Department’s ownership stake to 26 percent, from nearly 61 percent.

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Read more: http://www.nytimes.com/2010/11/18/business/18auto.html?_r=1&hpw

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Time for some serious shouting and "told you so".

[madmax]

1. This isn't being shouted and touted out in the MSM

as a BFD. It has been on JS, Rachel, L O'D. Then again, maybe I've missed it since I don't watch much of so so called 'big broadcast' stations.

Crickets if something Obama does works out. He twitches wrong and it's 24/7 disaster - world implodes.

[harun]

2. Gov't should just keep their remaining share and use the influence that

ownership brings to push them to create pure electrics at affordable prices.

I'd rather the gov't have a stake in GM, than in Iraq and Afghanistan.

[bossy22]

4. not necessarily a good idea

if the market is there for electric cars than do it...if it isnt- then don't. Building something people don't want to buy is what got GM into this mess in the first place

Plus i would also add that the value of an electric car is overstated. Many people may say "yeah i would own an electric car" but after really thinking about it would probably just settle for the ease of a Gasoline driving vehicle. Remember, unlike a gas vehicle you can't just "fill up" an electric car- you may need a few hours to recharge. Also service issues and all that stuff will way in.

Personally i will never buy an electric car unless they find some way to recharge its battery in under 10 minutes and have a AAA style "road recharge service".

[jaksavage]

9. Gm has been convincing

customers to buy cars they don't need for decades. They create desire.
Electrics are not for everyone, but need to be in the mix.
Support them at least as much as we support oil based vehicles with our war machine.

[jmowreader]

16. There's a difference between 'don't need' and 'don't want'

No one who's not a farmer, oil driller or road builder needs a Hummer. They WANT Hummers, or at least they did, so many of them were sold.

Electric cars are a different story. A car that goes 150 miles before it needs an 8-hour charge, only goes 50mph because people with electric cars like to go slow, is ugly because electric cars don't have to look good, and costs $45,000 because electric cars are supposed to be expensive in acknowledgment of their impact on the environment is a car no one will want.

[saigon68]

14. There is no stake in those cesspools

Only death, murder and bankruptcy

[louis-t]

3. If repugs had any brains....

they would have said "Here's something Bush got right, it worked." Instead, they scream "IT DIDN'T WORK AND IT WAS OBAMA'S
IDEA!1!1!1"

[muntrv]

5. TX gov. Rick Perry was on MSNBC, saying that the bailout was

still a bad idea. Said that there would not have been that many jobs lost and it "woulda worked itself out." TOOL!

[fencesitter]

6. Translation...

we were'nt able to destroy or at least, weaken the UAW like we hoped.

[Populist_Prole]

7. Bingo fencesitter! n/t

[jkappy]

8. To Break Even, Guv wd have to sell rest of shares at 54.00

Which is not very likely since these well promoted shares sold for 33.00.

[TheWatcher]

12. Perception is Reality with most around here JK

You're probably wasting your time even pointing that out.

later on today, Cramer will just scream how good everything is, push some buttons and make some wacky noises, and that will be enough for the doe-eyed hypnotized public to get back to their DVR's of Dancing With The Stars, none the wiser.

As for me, I'm off to the Airport for my daily dose of Love-Pats.

[TheWatcher]

10. You can serenade us with "I Told You So" if you wish, but you Should probably look a little closer.

To break even, the Treasury Department will need to sell its remaining 500 million shares at an average price of $53 each in the months and years to come. And while the administration may retain great influence over the company, it may not be able to keep stoking the enthusiasm investors have shown for G.M. stock in recent days.

They always hide the truth in the Propaganda somewhere, and then put you back to sleep in the very next paragraph, with soothing speculation that is just that, speculation.

Kind of what the whole Market is based on at the moment.

Speculation, Manipulation, and fraud.

The Big Money is happy though, as is the Treasury and TPTB.

They cashed out at $35, and now the air is slowly coming out of the Bubble, leaving everyone else holding the bag.

here is a better perspective of Yesterday's 3 Card Monte, though those who wish to continue to live in Neverland will simply giggle, snicker, and Numb out to CNBC's version of reality and continue to cheer on the Fantasy Island Economy.

http://www.zerohedge.com/article/getco-chruns-nearly-entire-gm-float-stock-closes-lows-day-and-1-below-break-price#comment-738968

The Bagholders (The Public) got a big Broadway Style Propganda fest yesterday, and today, like the aftermath of any drunken binge, is rather quiet, and the Market is now flat after being down most of the morning.

And the GM IPO?

Now a slow leaking Balloon:

http://finance.yahoo.com/q?s=gm

Dove straight down toward the offer price this morning, but somehow the "Miraculous Public Enthusiasm" :rofl: showed up en masse at 10 AM, though things are still down for the day.

Maybe Big Money isn't finished bailing from the Ship yet.

But in the end, all of this is just laughable conspiracy kookery, I should be on meds, I worship Glenn Beck, I'm a Tea Bagger, I hate Obama and America, and CNBC's spin is more credible than the word of God or Jesus Christ themselves.

Perception is Reality, so there was really no point to posting any of this anyway.

Party On Dudes!

[TheWatcher]

11. GM shares lose momentum in post-IPO return

http://www.reuters.com/article/idUSTRE6AB43H20101118

Snip:

At $33 a share, the partial sale represents a loss of about $9-billion on taxpayers' original investment, assuming the extra shares go at the same price.

Hmmmm, that information is kind of missing from the similar NY Times article. Interesting.

To break even on the bail-out, the Treasury would have to average near $52 per share on its remaining stock sales, more than 50% above GM stock's closing price on Thursday. GM shares gained 3,6% to close at $34,19, trimming gains from an earlier high at $35,99.

Again, the reality does not match the hype.

It will be quite sometime before The Taxpayer sees a win here, if at all.

Now that Big Money and treasury have flipped most of their stake to the sheep, we'll have to see if The Bag Holders (the rest of us) get any of the crumbs from the table.

But I know, I know. Everything is wonderful, I Told You So, etc.

Carry on.

[golfguru]

13. Reuters article disputes the OP

http://www.reuters.com/article/idUSTRE6AH5F320101118

[Thor_MN]

15. Corporate media quietly weeping over loss of "Government Takeover" meme

Tea parties must be devastated that can't decry the takeover of business...

[sarcasmo]

17. Still making crap cars no matter how much their stock climbs.