From The Detroit News
GM Stock Dive Not Good News for US Taxpayers!
While most people associate General Motors with its bailout by the U.S. government, the company remains what it has always been – a global manufacturing giant that is as exposed to the vagaries of the business cycle overseas as it is in North America.
Troubles in the Eurozone have hit GM’s business hard, driving its stock down to the $19 level, the lowest it has been since its post-bankruptcy IPO in November 2010.
GM’s stock price is a matter of some interest to American taxpayers, as the federal government still owns 32% of the carmaker, and needs a price of $53 per share to break even. The feds would lose about $17 billion if they tried to dispose of their holdings at current prices.
As the late and revered Senator Dirksen might observe, “a billion here and a billion there, and it adds up to real money!”