Daily Archives: November 18, 2010

Me with Rick Santorum

Here I am with Senator Rick Santorum

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Filed under 2012, Administrative Bulletin, Politics, The Media

The Revitalization of GM

Today, GM began to trade as a publicly-held company on the New York Stock Exchange.  This is a big deal for a number of reasons.  First, it means that taxpayers are being (partially) repaid for the auto bailout.  Prior to GM’s initial public offering (IPO), $9.5 billion of the GM bailout funds were repaid, according The Wall Street Journal.  This stock offering raises an additional $20 billion, much of which goes to the U.S. Treasury to pay back the bailout.  That means that, at best, GM has repaid around $30 billion of the $49.5 billion bailout.

Secondly, GM going public again means that the auto bailout, no matter who distasteful you may find it, was a success (somewhat).  GM, which prior to bankruptcy and bailout was an uncompetitive company with a butt load of debt, labor costs, and inefficiencies, has emerged as a competitive player in the global marketplace.  The goal of the bailout, as I see it, was to take a company that was shedding jobs, prevent it from going under, and transform it into a job creator.  GM is doing just that by hiring workers for new manufacturing plants and adding more shifts at existing plants.

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Filed under The Economy, The Truth