To: Wharf Rat who wrote (24120 ) 8/20/2012 12:19:44 AM From: gamesmistress 2 Recommendations Respond to ... according to Forbes Magazine , GM is likely headed for bankruptcy all over again. The numbers are stark. The 500,000 shares of GM stock, comprising 26 percent of the company owned by the government–or more accurately the American taxpayer–sold for $20.21 on Tuesday. This left the government holding $10.1 billion worth of stock representing an unrealized loss of $16.4 billion. Even worse, in order to reach the break-even point, the stock would have to sell for around $53 per share.Investors Business Daily reveals, the Treasury Department continues “to revise upward the staggering losses inflicted on U.S. taxpayers.” They further note that the same day GM announced it was recalling 38,000 Impalas used by police in both America and Canada, due to a possible crash risk, a new Treasury report forecast that losses for GM were expected to reach $25 billion, which is $3.3 billion more than predicted earlier. Furthermore, since that report was based on GM’s stock price at the time of the report–15 percent higher than it is currently–those losses are likely understated.In June, while the media was busy touting GM’s “success,” government purchases of GM vehicles rose a staggering 79 percent. And no doubt by sheer coincidence the purchase occurred only weeks before GM was to announce its 2nd Quarter earnings. GM also got an additional $2.7 billion from the Department of Energy (DOE) to reduce energy consumption in its door-making process. Still more? In a move reminiscent of that which precipitated the housing meltdown, GM has ramped up its uses of risky sub-prime loans to drive vehicle purchases. “The subprime market grew as a result of the recession,” said GM spokesman Jim Cain. “Our experience, however, is that with proper management they are very good risks.” That’s what Democrats like Barney Frank (D-MA) said about the housing market–just before it tanked and took the rest of the economy with it.frontpagemag.com
