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