From Zero Hedge:
Nobody could have expected this. Certainly not the 112 hedge funds which hold GM stock on expectations the government, the Fed and GETCO would never let “that company” plunge this far. Next up: a congressional hearing for GETCO regarding charges of ponzi maintenance dereliction. As for the much touted “breakeven” on GM by the US government, the WSJ summarizes it best: “To break even, the U.S. Treasury would need to sell its remaining stake—about 500 million shares—at $53 apiece. GM closed off 27 cents a share at $29.97 in 4 p.m. trading Monday on the New York Stock Exchange, hitting a new low since its $33-a-share November initial public offering.”…
And you just gotta know that Obama will be touting GM as a success. He’ll make speech after speech in 2012 telling us that if it weren’t for him, GM would be gone. But unless we, the people who bailed them out, get our money back, it is a complete failure. We’re a bit more than $23 a share away from break-even. Anyone want to bet how long, if ever, it will take GM stock to climb that much? And what happens to GM auto sales if gasoline does go to $5 a gallon?
The government cannot fix the economy – ever liberal out there should be forced to write it 10,000 times. It is not possible for any government official to know what needs to be done – it just isn’t the thing government is for. To put in old-fashioned terms, government has not the competence; and no law or regulation or academic theory can change that.
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