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1 Achilles Tang  Fri, Nov 18, 2011 7:53:15pm

“Thanks to stock price”.

I suppose we can blame the gummint for all stock price declines, or maybe the EU, or maybe congress which is bringing us to another confidence brink shortly.

What I would like to know is what the “taxpayer” cost in all its real forms would have been had GM dissolved.

2 Dark_Falcon  Fri, Nov 18, 2011 8:01:39pm

re: #1 Naso Tang

“Thanks to stock price”.

I suppose we can blame the gummint for all stock price declines, or maybe the EU, or maybe congress which is bringing us to another confidence brink shortly.

What I would like to know is what the “taxpayer” cost in all its real forms would have been had GM dissolved.

That implies a false choice. A normal bankruptcy would not have meant the dissolution of GM. But it would have mean the Obama-supporting UAW, and not GM’s boldholders, would have taken a hard hit.

3 Achilles Tang  Sat, Nov 19, 2011 5:53:52am

re: #2 Dark_Falcon

That sounds like political jargon. A normal bankruptcy would have meant a fire sale for China (more than there was) and failure for many hundreds if not thousands of smaller subcontractors. Bondholders have taken hits and they were not the “job creators”.

I seem to remember saving Detroit as being more of a bipartisan consensus than we have seen since.

4 Gus  Sat, Nov 19, 2011 6:18:06am

There are long term goal here and even though the cost of the bailout of GM has increased it’s position to survive in the long term has been more than ten-fold. And despite what this sophomorically written — Ostrich-in-Chief Barack Obama?* — opinion piece at Reason has to say, had there not been a bailout the ripple effect of GM’s collapse would have reached beyond the auto industry (vendors and supplies) itself including adding 100,000s of Americans to the unemployment lines.

A couple of other points. This opinion piece also did not make a cost benefit analysis comparing the total costs to tax payers had GM not been bailed-out versus being bailed out. As I stated about the ripple effect would have been enormous and effect almost every business associated with GM either directly or indirectly. As it stands now GM is facing lowering stock prices but that is largely due, in large part, to the yet unresolved Eurozone crisis. Finally, it is important to point out, for the partisans in the house, that the GM bailout began in earnest under the watchful eye of the Bush White House.

*Apparently Reason has also been using the Michelle Malking Book of Style:

These companies concentrate on the small car market and don’t offer a full product line so GM and Ford’s most profitable vehicles—those evil, gas-guzzling, greenhouse-gas emitting SUV’s and pickup trucks—are somewhat insulated from the downward price pressure. But the greens and Obama administration want GM to reorient its product mix away from big cars and toward money-losing hybrids and electrics, something that could well put GM back in a hole.

All of this shows why forcing taxpayers to wager their hard-earned dollars on a risky venture was exactly the wrong thing to do. But the Ostrich-in-Chief Barack Obama, who had assured taxpayers that their GM “investment” would cost them “not a dime,” is drawing the opposite lesson, obviously. He has been trumpeting the success of the bailout—repeatedly.


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