Word came late yesterday that the Barack Obama Administration had dramatically upped the estimated loss on the automobile industry bailout – from $14.3 billion to $23.6 billion.
“The big increase is a reflection of the sharp decline in the value of (General Motors’) share price.”
We the Taxpayers own 500+ million shares of General Motors (GM) stock. For us to break even, we must sell at $53 per. It is currently trading at around $23.
GM’s foundering stock price – and our huge holdings thereof – is an alarm bell we at Less Government have long been ringing. And why we built www.BailoutCost.com. The site chronicles the looming GM stock price catastrophe – and proffers the real solution for the Obama Administration and GM to get us out without this titanic loss.
Less Government President Seton Motley:
“The Obama Administration yesterday acknowledged the reality we have long been pointing out – that General Motors stock is hopelessly below our break-even price. And that We the People will not – as the President once asserted – make money on the auto bailout.
“We the People knew the auto bailout was a fiscal disaster waiting to happen. Which is why We the People opposed it at its inception – and why we opposed the Obama Administration’s $30 billion increase therein.
“We were right – as we now we face a GM stock price train wreck-loss of about $15 billion.
“But we can be made whole – at least on the GM stock with which we are currently stuck. GM has $36.5 billion in cash on hand – the break-even buy-out price of our shares is $26.5 billion. GM should take their coin and purchase our stock – and get We the People once and for all out of the car business.”