General Motors headed for bankruptcy . . . again

President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.

Right now, the government’s GM stock is worth about 39% less than it was on November 17, 2010, when the company went public at $33.00/share. However, during the intervening time, the Dow Jones Industrial Average has risen by almost 20%, so GM shares have lost 49% of their value relative to the Dow.

It’s doubtful that the Obama administration would attempt to sell off the government’s massive position in GM while the stock price is falling. It would be too embarrassing politically. Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.

GM is unlikely to hit the wall before the election, but, given current trends, the company could easily do so again before the end of a second Obama term.

Read more from this story HERE.

  • clark32

    ANYTHING that the Feds. run goes bankrupt, most of the people in the congress and senate could run a kool aid stand. The only thing they are good at is spending OUR money.

    • You left out not, as in could not run a kool aid stand.

    • reggiec

      “If you put the federal government in charge of the Sahara Desert,” economist Milton Friedman famously said, “in five years there’d be a shortage of sand.”

  • What a “surprise!”

  • James


    • keepersleeper

      That’s the bottom line…everything else is moot at this point and time. November 6 will be our crossing the Rubicon to save our country.

  • Aimee

    Any company that has more expenses than income will fail period! The tax payers unfortuntely bailed out a company that should not have been bailed out, it was to save the unions and it is not the tax payer’s responsibility to do the same thing over again expecting a differant result!

    • reggiec

      You can apply the same standard to the US government. It now borrows 43 cents of every dollar it spends.
      The brutally honest truth is that government has grown to the point that the productive, private sector, wealth creating portion of society can no longer support it.

      • Aimee

        I agree 150% with you reggiec!

  • Anita

    Why won’t China bail them out? That’s where they are in the process of moving. They stole our money now they are moving to China.

  • daveveselenak

    Hey, the Muslim-Marxist is achieving his goal of taking down America – that is why the illegal implant was selected. He need’s to be impeached for treason, for God’s sake, he will steal this upcomming election as he had the last one and will therefor be dictator for life – bet on it!

  • nenadine

    please put a “print” button on your page so I can print it without all pictures and advertisements so I can share with people who don’t have printers or pc.

  • And BO is running around shooting of his mouth about wanting ALL businesses to be set up like GM…
    I’ll buy Ford in the near future… which I’ve not done before….

  • Samurai_Sam

    OOH OOH! Mr. Obama do you have any stock tips for me? I’ve been thinking of setting up a buggy whip plant and could use some seed money!

    We can kiss our money goodbye and you can kiss your job goodbye. You won’t be getting any bailouts from the fools that voted for you last time. Well far fewer anyway, some people never learn.

    • Kent2012

      only if your buggy whip is solar or wind powered and you contribute 50% back to the

  • Wayne deJel

    What do you expect when those running the company are those that caused the problem in the first place… Thank you Mr. Pres for turning GM over to the Unions (who’s only real concern is getting Union dues from workers)

  • toomuchsense

    Liberals, you got to love them. They can hardly fend for themself.

  • gvhparkridge

    A message to Seniors from a Senior..we are suppose to be afraid of Ryan about showing support by sending Romney a donation based on your age. I you are 65..send a check for as little as $6.50 or as much as $650.00..I’m 77 and my check will be $777.77..mark your check SENIOR…we don’t want them to get weak kneed.

  • marineh2ominer

    Thats because the bailout wasn’t for the automaker , it was for the crooked thieving unions , and until the company declares bankruptcy to get out of their union contracts they will NEVER survive . Want more tax paid scams ? Vote Obamass !



  • Barry_Suxx

    Everyone: Remember when our Lier&Chief shot-off his mouth from inside a Shuvit-Volt? But the S-S wouldn’t let him drive it because it was too much of a risk.. (LOL). Then he continued his farcical of lies by stating that after he finishes he presidency, he’ll buy&drive his own Volt. Let’s see him honor this lie. (hopefully Gvmnt-Motors will be dust by then)