You Own 72% of GM `if U pay taxes : )
#1
05-29-2009 | 11:26 AM
You Own 72% of GM `if U pay taxes : )
Member's `if you are a taxpayer in the US
or Canada, then you are now owner of 72.5%
of GM or Government Motors.
Total $50 Billion in Tax Dollars to GM
Today’s News
In the driver’s seat
An administration plan to become the automaker’s major stakeholder would best if it is a short-lived ride in the driver’s seat.
May 29, 2009 in print edition A-26
Take heart, taxpayers. Your retirement savings may be a fraction of what they were, you’re defaulting on mortgages in ever-growing numbers and more of you are unemployed with each passing day. But look on the bright side. In addition to taking over the country’s largest insurance company and its two biggest sources of mortgage financing, not to mention holding a controlling interest in the world’s largest bank, you’re poised to acquire more than half of what used to be the world’s most popular automaker. Good times!
In a notice filed with the Securities and Exchange Commission on Thursday, General Motors laid out a plan, backed by the Treasury Department, to shrink the company’s crushing debt load by paying off bondholders with shares of newly issued stock. The largest of the company’s lenders is the U.S. government, which is expected to extend upward of $50 billion to GM – about twice as much as the private sector. Under the plan, which some bondholders are likely to contest in Bankruptcy Court, GM would give U.S. and Canadian taxpayers 72.5% of the reorganized company’s common shares and $2.5 billion in preferred stock while continuing to owe them $8 billion.
Assuming the plan goes through, taxpayers will add GM’s flailing business to a portfolio that also boasts sizable holdings in Chrysler (which is soon to emerge from bankruptcy), American International Group, Freddie Mac, Fannie Mae, Citibank, Bank of America and more than 500 other banks. Many of these investments will actually yield a return on the taxpayers’ investment, although the intent was simply to prevent the recession from getting even worse.
Administration officials say they’re reluctant investors in GM, just as they were with the financial institutions they deemed too big to fail. For the automaker to have any chance of succeeding in the long run, it has to prune its operations significantly and bring its costs per vehicle into line with its competition. It’s in the process of doing those things – shedding some brands, winning union concessions, eliminating scores of dealerships, reducing the cost of retirement benefits and converting debt to equity. But just as taxpayers are reluctant investors, GM would be far better off with no government ownership. There are just too many conflicts between what the country’s political leaders want to accomplish and GM’s need to make a profit. The feds’ support has been crucial to keeping GM running while it struggles to reorganize along the lines demanded by the Obama administration. But once it gets through this process, the best thing the administration can do for the company is to sell it to someone else.
or Canada, then you are now owner of 72.5%
of GM or Government Motors.
Total $50 Billion in Tax Dollars to GM
Today’s News
In the driver’s seat
An administration plan to become the automaker’s major stakeholder would best if it is a short-lived ride in the driver’s seat.
May 29, 2009 in print edition A-26
Take heart, taxpayers. Your retirement savings may be a fraction of what they were, you’re defaulting on mortgages in ever-growing numbers and more of you are unemployed with each passing day. But look on the bright side. In addition to taking over the country’s largest insurance company and its two biggest sources of mortgage financing, not to mention holding a controlling interest in the world’s largest bank, you’re poised to acquire more than half of what used to be the world’s most popular automaker. Good times!
In a notice filed with the Securities and Exchange Commission on Thursday, General Motors laid out a plan, backed by the Treasury Department, to shrink the company’s crushing debt load by paying off bondholders with shares of newly issued stock. The largest of the company’s lenders is the U.S. government, which is expected to extend upward of $50 billion to GM – about twice as much as the private sector. Under the plan, which some bondholders are likely to contest in Bankruptcy Court, GM would give U.S. and Canadian taxpayers 72.5% of the reorganized company’s common shares and $2.5 billion in preferred stock while continuing to owe them $8 billion.
Assuming the plan goes through, taxpayers will add GM’s flailing business to a portfolio that also boasts sizable holdings in Chrysler (which is soon to emerge from bankruptcy), American International Group, Freddie Mac, Fannie Mae, Citibank, Bank of America and more than 500 other banks. Many of these investments will actually yield a return on the taxpayers’ investment, although the intent was simply to prevent the recession from getting even worse.
Administration officials say they’re reluctant investors in GM, just as they were with the financial institutions they deemed too big to fail. For the automaker to have any chance of succeeding in the long run, it has to prune its operations significantly and bring its costs per vehicle into line with its competition. It’s in the process of doing those things – shedding some brands, winning union concessions, eliminating scores of dealerships, reducing the cost of retirement benefits and converting debt to equity. But just as taxpayers are reluctant investors, GM would be far better off with no government ownership. There are just too many conflicts between what the country’s political leaders want to accomplish and GM’s need to make a profit. The feds’ support has been crucial to keeping GM running while it struggles to reorganize along the lines demanded by the Obama administration. But once it gets through this process, the best thing the administration can do for the company is to sell it to someone else.
#3
05-29-2009 | 11:36 AM
...R.J., I believe that the warranty is covered under the Bankruptcy laws, or backed by security bonds. I would check with your dealer, that is `if they have not been closed : (Remember, you are now part owner in GM : )
It sure not a pretty story, but I hope after they re-organize that
GM will recovery....Let us pray 4 Sure. I can't imagine no GM
I will search more 2 C if I can find more information.
EnJoy your last day of vacation, and be thankful that you have
a good job. EnJoy your Weekend R.J. & Member's
#5
05-29-2009 | 11:52 AM
...LOL `Ted....those were funny 4 Sure. ...Thanks I needed a good `laugh...I just hope/pray that GM doesn't mess with the Camaro's or Vette's & stop making performace vehicles...That would really SUCK
#7
05-29-2009 | 12:20 PM
`Ted, say it isn't so....What's happening to our Country.
I think the poor management of companies should have to pay
for their greed, & all their worldly possesions taken away.
Greed Corrupts, and it has in our Banking/Insurance/auto companies
Makes me want to hit ZomeOne, and
Cry with the Eagle...I do, I will continue,
and work to make it a better World.
I will....I will
What R U do'in 2 make it better ?
#8
05-29-2009 | 10:34 PM
Joined: Sep 2007
Posts: 20
From:
Since I own 72%, does that mean I can order and bring back a COPO car? The big three went down because its all about the money and not the product. Think about it, after 1988 all they produced was cookie cutter junk. Its ashame, my 87ls can't hold a candle to a 70 monte with a big block. The passion just isn't there anymore. The new camaro,well, it looked good in the movie. The challanger, a glorified 300. The mustang, well not a ford fan. Just not impressed and I have had a few in my driveway. My list includes a 60 impala hardtop coupe, 67 impala ss ragtop, 68 impala coupe, 69 buick skylark (aka the vette killer)78 camaro berlinetta,80 camaro, and now the 87ls. Took them all apart and put them back together and the quality, design and power just isn't there anymore.
#9
05-29-2009 | 11:23 PM
Joined: Jul 2006
Posts: 6,482
From: Southwestern OH
REMEMBER.................
ANYTHING the government touches ends up worse then it started out as. This is a proven fact.
One thing I'd like to know. How can Obama as president make the CEO of GM step down when the president does not have this power?
ANYTHING the government touches ends up worse then it started out as. This is a proven fact.
One thing I'd like to know. How can Obama as president make the CEO of GM step down when the president does not have this power?