Item #1 (H/Ts – Kevin and Fausta) – The same Chevrolet Volt involved in a garage fire last week burst into flames a second time Monday.
Item #2 – The Wall Street Journal reports that the US Treasury is looking to dump the remainder of its holdings in Government Motors (500,065,254 shares) over the summer. At the current trading price of $29.51, that would mean we the taxpayers lost over $14 billion on just the auto-manufacturing part of the GM bailout while (assuming GM makes it to the end of 2014 and the UAW fully cashes out), the entity that was most-responsible for the collapse of Old GM, the UAW, would make $12.55 billion on the deal.
That led Warner Todd Huston to unveil the last car from the current version of GM – the Government Motors WeeKan.
I’m actually totally ok with them dumping the stocks for a loss. Just imagine if the Gov had made money on the deal. They’d have a bragging point anytime any industry got in a scrape. “Hey, the gov saved GM and made money on it!” No need for the bailout error to be viewed as a success.
They should never have done it in the first place. A normal Chapter 11 is precisely what GM and Chrysler needed, and honestly, it’s what they both will get no later than the end of 2015.
[…] in the government seizures of GM and Chrysler in favor of the profiting UAW (at last check, the UAW will end up getting over $1.50 on every dollar GM owed it), we should have seen this […]