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Now that the President isn't running for reelection, he's showing his true colors. Making a grab for guns (more on that later) and divesting himself of the idiotic GM bailout. So, just how much is the US going to lose on the deal?
A lot. From Real Clear Markets:
Not only were Americans lied to about the costs, but the bailout underscores why replacing market forces with federal bailouts doesn't work.
The Obama administration says it will unload 200 million shares - or about 40% of its holdings - back to GM right away. The rest, 300 million shares, are to be sold by March 2014.
The break-even point on the government's total holdings was $53 a share. But now, with $20.9 billion in taxpayer funds left to pay off from 300 million shares, the break-even point has risen to $69.72 a share.
In other words, at current prices, taxpayers are sitting with a loss of 61%, or nearly $15 billion, on their investment.
The article goes on the debunk the myth that GM is coming out smelling like roses. The bailout was just a payback to the UAW and a way to keep the steady Democrat contributor from going under. Now that it's no longer politically useful, it's going off the books at a loss.
The White House proves that the government should not be involved in picking winners and losers in the private sector yet again. They're bad at it and are playing with house (our) money, so don't feel the consequences.
They'd know that if they ever bothered to propose a budget.