US In Rush To Sell Off GM Stake: Report

[Purveyor]

By Agence France-Presse
Tuesday, April 19th, 2011 -- 8:39 am

NEW YORK — The United States plans to sell off much of its remaining shares in General Motors this summer despite the lackluster performance of the company's stock, the Wall Street Journal has reported.

The newspaper said the sale within the next six months would "almost certainly" mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009.

The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM's stock is currently hovering around 30 dollars per share, the newspaper said.

At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources.

MORE...

http://www.rawstory.com/rs/2011/04/19/us-in-rush-to-sell-off-gm-stake-report/

[KurtNYC]

1. what kind of capitalism is THIS?

The government refuses to create jobs, no public works, no repair of infrastructure, no dams, highways, schools, etc. But they throw $50 billion at GM and lose $25 bil in one year!

That $25 billion could have employed 500,000 americans at $50K/yr. This Wall Street welfare stuff is obscene and insane.

[GliderGuider]

2. It's precisely the kind the corporations have bought and paid for.

Along with all the politicians, lawyers, judges, police and educators required to make sure that malcontents like us can't rock the boat.

Did you really think this was still a democracy?

[Purveyor]

4. Yet the $25 billion will buy about 5 months of war that is still be squandered in Afghanistan. eom

[orangeapple]

7. capitalism is a system of profit

and loss.

Our politicians decided the only losers should be the taxpayers.

[madrchsod]

3. if they dump 500 million shares they will bankrupt gm.

[golfguru]

6. That is where GM management belongs...in bankruptcy

The production facilities will be bought by smarter people
who will rehire many workers.

[golfguru]

5. Throw good money after bad and you lose more of it

I understand we the tax payers will lose Billions on the GM bailout deal.

Why do we bailout failing corporations? They are failing exactly because they are
inferior to other more successful corporations.