Last post on Dec 22, 2012 at 7:06 PM
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What is this discussion about?
Oct 17, 2012 (7:27 pm)
The arguments sound pretty familiar.
"The idea that a U.S. style bailout is in the cards doesn't impress Flanders Automotive Research's Heylen. He thinks the European authorities don't see the need for financial assistance to reform the car industry, unlike banks, which needed help to stop a contagious collapse which would undermine economies. A car manufacturer failure would be a plus, not a negative.
"Look at the financial straits that GM was in or Chrysler in particular. It looked like sending good money after bad at first, but look at them today. There seemed to be no chance that Chrysler could be saved with all the money in the world, but it has been turned around in the most remarkable way and is now bailing out Fiat. Any European politicians looking at this would be fools to not to follow the same example," Schmidt said.
Chaotic European market spurs Opel-Peugeot merger talk (Detroit News)
#4021 of 4024 Feds cutting their losses on GM
Dec 19, 2012 (8:22 pm)
We will officially start losing 50% of our investment in GM by the end of the year.
Uncle Sam Books 50% Loss As Government Motors Buys Back 200MM Shares From Tim Geithner
The Detroit automaker said it will purchase 200 million shares of GM stock held by Treasury for $5.5 billion — or $27.50 per share
Still, taxpayers will almost certainly lose billions of dollars in the $49.5 billion GM bailout - and the government would need to sell its remaining shares for about $70 each to break even.
Dec 21, 2012 (5:03 am)
"As told in "Overhaul," Rattner's book about the bailouts, it was Wilson who concluded that GM's obligation to the U.S. Treasury would have to be "equitized" -- in the form of stock rather than loans -- or else GM would sink under the burden of too much debt.
"I thought GM was dirt cheap a year ago and the stock is up 38% since then, and I still think it's attractive," he wrote."
Architect of GM bankruptcy says stock is undervalued (Detroit Free Press)
#4023 of 4024 Re: be like Buffett? [steve_]
Dec 21, 2012 (6:05 pm)
Since I think the gov doesn't directly loan, but rather guarantees the loan, it may have ridden on what interest rates the lenders would have required. Remember, a lot of banks were in a crisis back then too and liquidity dried up.
#4024 of 4024 Re: Feds cutting their losses on GM [gagrice]
Dec 22, 2012 (7:06 pm)