It Will Take a Miracle for GM to Pay U.S. Back

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It Will Take a Miracle for GM to Pay U.S. Back

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I was impressed by What I Learned Today about the “bill of goods” that is being sold to the American taxpayer in the form of the government rescue of General Motors:

• $30.1 billion = 60 percent stake in New GM’s equity;

• $20.6 billion = Amount federal government spent trying to keep GM out of bankruptcy;

• $50.7 billion = Total amount the U.S. Treasury has spent to keep GM alive;

• $83 billion = is what New GM would have to be worth in order for us to break even on our investment;

• $56 billion = GM’s value at its all-time peak in 2000; and

• $7.3 billion = GM’s value now.

All things considered, GM must realize an increase of 48 percent above its all-time peak value — achieved in 2000 –  in order for taxpayers to get their money back.  I, for one, will not be holding my breath in anticipation of such a performance.

-- Bob McCarty Writes