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Government Motors Headed for Bankruptcy Again!

Started by Gaspar, August 17, 2012, 09:11:34 AM

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nathanm

#15
August 17, 2012, 04:41:31 PM
Quote from: Gaspar on August 17, 2012, 04:14:30 PM
It's an excellent example of the government acting as a really really stupid private equity firm!

If the government were acting as a private equity firm, GM would be bankrupt already. They would have been unable to service the debt load used to buy up all the stock and they would have been busy spewing out special dividends to "repay" the new owners for the cost of their equity stake.
"Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration" --Abraham Lincoln

erfalf

#16
August 17, 2012, 04:51:34 PM
Quote from: nathanm on August 17, 2012, 04:41:31 PM
If the government were acting as a private equity firm, GM would be bankrupt already. They would have been unable to service the debt load used to buy up all the stock and they would have been busy spewing out special dividends to "repay" the new owners for the cost of their equity stake.

Like this...

http://www.huffingtonpost.com/2009/05/15/gm-dealer-closing-list-se_n_203860.html

and this...

http://www.nytimes.com/2009/06/02/business/02union.html

and this...

http://www.csmonitor.com/Business/2010/1119/With-big-GM-stock-offering-vindication-for-the-government-bailout
"Trust but Verify." - The Gipper
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