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Posted at 5:16 PM ET, 11/18/2010

GM shares close 3.6 percent up; Obama says bailout worked

By Jia Lynn Yang and William Branigin

gm296.jpg

President Obama, declaring that the U.S. auto industry "is once again on the rise," hailed General Motors' public stock offering Thursday as a vindication of the bailout program and the "tough restructuring" that resulted from it.

In brief remarks at the White House, Obama said GM's relaunch as a public company cuts the government's stake in the largest U.S. automaker by nearly half.

"American taxpayers are now positioned to recover more than my administration invested in GM," he said. U.S. automakers "are in the midst of their strongest period of job growth in more than a decade," Obama said, adding that "for the first time in six years, Ford, GM and Chrysler are operating at a profit."

While there is still "a long road ahead," the president said, "we are finally beginning to see some of these tough decisions that we made in the midst of crisis pay off."

General Motors posted a 3.6 percent gain in its first day back on the stock market Thursday, closing out a smooth day of trading at $34.19 a share.

The stock, which was priced at $33 a share for the IPO, surged to nearly $36 a share minutes after chief executive Dan Akerson rang the opening bell at 9:30 a.m.

The price leveled off through the morning at around $35 a share with U.S. stocks up broadly. The Dow Jones Industrial Average was up 1.57 percent to 11181.40. The S&P rose 1.54 percent to 1196.69.

The lack of volatility indicates that GM priced the IPO well, according to analysts. "Seems like they were pretty much on the mark to me," said Bill Visnic, a senior editor at Edmunds.com.


The scene earlier this morning appeared frenzied on the typically staid floor of the New York Stock Exchange, with underwriters and GM board members and executives all gathered for the landmark moment. There was a short delay after the opening bell for GM shares to actually begin trading.

Here is some video of the scene on Wall Street:

The question is: After receiving a $50 billion infusion of taxpayer money and filing for bankruptcy last June, can a company that was left for dead a year ago roar back to life on a giant wave of Wall Street hype and anticipation?

The total offering size could be as large as $23.1 billion, according to GM in an announcement late Wednesday afternoon. At that amount, counting sales of preferred shares, the GM IPO would be the largest ever in the world.

The market is ripe for going up today. Futures on the Dow Jones industrial average rose 97 points to 11,092, and the S&P futures rose 13.4 points to 1190.90.

Some key issues to keep in mind:

- Will taxpayers be made whole?

The U.S. Treasury has chosen to sell half its stake at $33 a share, raising $23 billion. It's blocked from making any moves now for six months, and when it does decide to sell again, it must sell the rest of the government's ownership at roughly $53 a share in order to break even. So today's pricing movement alone won't tell us whether taxpayers will get their money back.

- Who's buying the shares?

There has been some concern that ordinary retail investors -- the ones whose tax dollars helped pay for GM's bailout -- are getting shut out of the IPO. Brokerage firms Charles Schwab and TD Ameritrade won't be offering shares to customers. But the underwriters are expected to reserve about 20 percent for retail investors, which is not less than a typical IPO.

Foreign investors were in the mix, as well. This morning GM's partner in China, SAIC Motor Corp., said it was buying 1 percent of GM's shares as part of the IPO.

- Will this be the biggest global IPO ever?

The record is held by Agricultural Bank of China, which raised $22.1 billion when it went public in July. GM's total offering is slated to be $20.1 billion, but that number could reach $23.1 billion if the banks underwriting the IPO see there's still more demand and exercise their option to expand the offering size. GM already increased the size of the IPO earlier this week when it became clear that demand was high.

(SEE GRAPHIC: Biggest global IPOs)

- Is GM back for good?

This morning GM's VP Mark Reuss said in an interview the company won't be unfurling any "mission accomplished" signs anytime soon. It's delivered a handful of solid quarterly earnings but it's still working on reducing the debt on its balance sheet and designing cars that consumers actually want.

"It's a milestone for sure, but it needs to be treated as a milestone, and the beginning of a new company," Reuss said. "And we have go to deliver."

A chart of the ticker on Bloomberg here.

For more background, check out my colleague Steve Mufson's story in today's paper.

Color of Money columnist Michelle Singletary also weighed in on GM's rise from the ashes.

Look back at photos of the automaker: GM's road to bankruptcy.

To hear chief executive Dan Akerson discuss the IPO, check out this video interview.

And tell us what you think: Is GM's IPO a victory for the goverment?

By Jia Lynn Yang and William Branigin  | November 18, 2010; 5:16 PM ET
Categories:  Auto industry, Corporations  
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Posted by: Anonymous | November 18, 2010 9:34 AM | Report abuse

investors have been warned off because of AUDIT irregularities. huh?

Posted by: 12thgenamerican | November 18, 2010 10:04 AM | Report abuse

Government Motors is nothing more than a UAW Welfare Organization that just happens to make a few cars as a hobby.

So why would anyone with even a single brain cell "invest" in such a joke of a company? Because no matter what happens to the car-making hobby portion (which might actually make some money thanks to $45+ BILLION in tax breaks the d-crat socialists have provided them -- and then there's the remaining portion of the $50 BILLION in bailout money, actually about $40 BILLION, that they still enjoy), the expectation is set that the lunatic-left d-crat socialists will use US taxpayer money to bailout the main part of Government Motors - the union goons and their gold-plated salaries, benefits and pensions. So, like a BIG BANK, investors in Government Motors can't lose - only taxpayers can.

Posted by: Anonymous | November 18, 2010 10:14 AM | Report abuse

I would walk for the rest of my life before I would ride in or buy a GM product

Statist democrats would fit into Fascist Italy or Nazi Germany just fine

Marxism morphed into socialism, nazism, liberalism, fascism and has yet to work....

...so Democrats are trying to force it on America

Posted by: georgedixon1 | November 18, 2010 10:19 AM | Report abuse

The bailout saved 1.4 million jobs and a big part of U.S. auto production. And the righties railed against the bailout. Vote Obama in 2012!

Posted by: Anonymous | November 18, 2010 10:20 AM | Report abuse

GM is like the Redskins, any little change is jumped on as a sign of a return to glory, only to evaporate into the same old mist.

Posted by: Anonymous | November 18, 2010 10:31 AM | Report abuse

A govt. bailout to save one of the most historically successful production companies in the world is about as far from socialism as you can get. Come on people. Learn before you talk.

But yeah, this is all a joke. Unless GM has changed anything, which I doubt they have, it will just sink again.

Posted by: Kapital | November 18, 2010 10:32 AM | Report abuse

From an AP story:

"the controversial jobs program that paid idled workers almost a full salary has been scaled back dramatically."

Have been wondering for a while what happened to that program. I recall it was a big issue for Congress when they were considering the bailout. At that time, the UAW President tut-tutted the whole thing claiming that there were "only" a "couple thousand" workers left who got to sit on their butts. I thought it had been killed as a condition for the BILLIONS of taxpayer dollars that we gave them. Apparently the program is alive and well and the Congress did nothing about these deadbeats. I don't believe for a moment that it has been scaled back dramatically. The UAW and Obama are still sticking it to the taxpayers at every opportunity. Lying sacks of you know what.

Posted by: magellan1 | November 18, 2010 10:40 AM | Report abuse

this is good news. the bitterness of the republican posts shows the success of Obama's decision to help out one of the last of our manufacturing industries to survive and keep our, not Chinese, workers employed and happy.
And not just those who work at the plants but, all the manufacturers of parts and supplies.
That, my republican friends, is what trickle down should be. Keeping manufacturing healthy and lending a helping hand when needed.
As a result, it spreads to other industries, keeping other employees at work and not on unemployment.
And it strengthens our damaged middle class.
You idea of trickle down, giving our wealth to the top 2 percent, welfare to multinationals who ship those jobs to the Communist Chinese, has been proven to be a complete failure for the country and 90 percent of the population.
That is not free market. That is not capitalism. That is a fat giveaway to billionaires and CEOs and the communist Chinese.
Helping out, lending a hand is humane, helps all involved and spreads to other areas. That is not government takeover. That is government giving a safety net and a helping hand to all involved.
You pretend that is socialism and rail about it.
But, say nothing when the CEOs and wealthy create jobs, not for us, but for the real communists in China.

Posted by: Anonymous | November 18, 2010 10:42 AM | Report abuse

I wouldn't touch that Obama and UAW tainted stock, with a 10 foot pole!

Posted by: theaz | November 18, 2010 10:50 AM | Report abuse

"I would walk for the rest of my life before I would ride in or buy a GM product

Statist democrats would fit into Fascist Italy or Nazi Germany just fine

Marxism morphed into socialism, nazism, liberalism, fascism and has yet to work....

...so Democrats are trying to force it on America

Posted by: georgedixon1 | November 18, 2010 10:19 AM"
==========================

The fact that you would use the words Marxism, Fascism, Liberalism, and Socialism in the same breath makes me weep for the sorry state of education in this country. You are the poster boy of why people who don't know what they're talking about shouldn't speak.

You are also a true partisan hack. You can't stand any good news coming out of the Obama administration, so you go on message boards wailing and screaming about liberals and socialists and Marxists.

Is this the sorry state of America? Who can scream the loudest? Do you not have any consideration or concern of what comes out of your mouth?

Posted by: ClandestineBlaze | November 18, 2010 10:51 AM | Report abuse

First of all I'd just like to say to anonymous, just below George Dixon1,that he should remember to, like Jeff, on the train with Mutt, was counting legs on the cattle as they drove-by,& when asked by Mutt why was he counting legs, to which Jeff replied, "Well I'll just divide by four". I'd suggest to Anonymous #1, do the same.

The business of the Govt. now becoming responsible for the 'Legacy Costs', from old G.M., & therefore no longer carried on the 'Books' by new G.M.,is certainly something they may not wish to make clear in their 'Prospectus' for this invitation to potential Shareholders, for this I.P.O.

This is a deal that would have made Old G.M. be declaring monster profits, & some really out-of-sight dividends for their Shareholders.

But the Obamanomics, was to literally strip the 'Old Stakeholders of everything', then relieve New G.M. of the very thing that precipitated the demise of 'Old G.M.'

If that ain't 'Tammany Hall' style Politics (on Steroids), & new & improved type Chicago 'Gangsterism', I don't know what is?????

Y'all think very,very, carefully about what I am saying here!!!!!

Posted by: Anonymous | November 18, 2010 10:59 AM | Report abuse

First of all I'd just like to say to anonymous, just below George Dixon1,that he should remember to, like Jeff, on the train with Mutt, was counting legs on the cattle as they drove-by,& when asked by Mutt why was he counting legs, to which Jeff replied, "Well I'll just divide by four". I'd suggest to Anonymous #1, do the same.

The business of the Govt. now becoming responsible for the 'Legacy Costs', from old G.M., & therefore no longer carried on the 'Books' by new G.M.,is certainly something they may not wish to make clear in their 'Prospectus' for this invitation to potential Shareholders, for this I.P.O.

This is a deal that would have made Old G.M. be declaring monster profits, & some really out-of-sight dividends for their Shareholders.

But the Obamanomics, was to literally strip the 'Old Stakeholders of everything', then relieve New G.M. of the very thing that precipitated the demise of 'Old G.M.'

If that ain't 'Tammany Hall' style Politics (on Steroids), & new & improved type Chicago 'Gangsterism', I don't know what is?????

Y'all think very,very, carefully about what I am saying here!!!!!

Posted by: buntyp | November 18, 2010 11:01 AM | Report abuse

The prudent investor needs to pause at the idea of purchasing stock in a company whose big decisionmakers include the US government, the United Auto Workers, and the Red Chinese government.

Posted by: Anonymous | November 18, 2010 11:02 AM | Report abuse

It's all about the trade profit insiders are going to wring from this pig before
taxpayers get a share. No long-term holding here...just getting the last ounce of energy from the horse before they butcher it.

Posted by: BluePelican | November 18, 2010 11:02 AM | Report abuse

So why would anyone with even a single brain cell "invest" in such a joke of a company?
__________________

I would in a heartbeat because I think the stock will surge due to a short term national pride thing, then it will sink after people realize that nothing's changed and the company is still a lumbering giant, only this time without its best asset, the Opal division which provided the designs for their more successful cars in recent years. Yes, I'd give it a week, tops before the stock plunged to below the IPO price. I predict the stock price will eventually return to the IPO price, but after the 2012 models are introduced, the stock will plunge into single digit territory. But the surge in the next couple of days will drive the price of the stock up pretty high. I'd let my money sit a couple of days, then pull out before the peak.

Posted by: ATrueChristian | November 18, 2010 11:03 AM | Report abuse

For the last 8 years we American's taxpayers have spent over 1 TRILLION DOLLARS to bring freedom and a better way of life to Muslims in Iraq and Afghanistan. We've built new roads, schools, bridges, hospitals for them. We've trained and equipped their entire army and police force. We've help pay for clean drinking water systems and to get their electrical grid up and running. We've paid to get their oil pipes flowing again.. 6000 Americans have actually died to protect them. And we never asked them to repay one cent...nor can we say we got anything in return. Not gratitude, not respect, not even support.
Yet when an American President decides to rescue a failing American company to keep a million American workers from losing their jobs...the same Americans who ageed to fork over 1 Trillion dollars to help some unknown Muslims half way around the globe, get so bitter, angry irate and upset because the rescue is costing us taxpayers 45 billion dollars that they say such unbelievable stuff like "I would never buy a GM car". They'd rather buy a car made in Communist China before they'd buy an American made car.

I guess it comes down to priorities.
Should we spend 1 trillion dollars helping some Muslim strangers half way around the world who do not appreciate our efforts and have no intentions of returning the favor.
Or
Should we spend 45 billion dollars to help Americans workers keep their jobs and feed their families here in the US...(and who might actually end up paying us back.)

As an American, I'm glad that for once our Tax dollars are going to help Americans!!

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Posted by: Anonymous | November 18, 2010 11:05 AM | Report abuse

In other words, New G.M.,is inviting potential 'Shareholders' to buy Shares in a heavily Govt. 'Subsidized' Industry.

That's just PLAINLY ILLEGAL.!!!!!

Posted by: buntyp | November 18, 2010 11:07 AM | Report abuse

GM hasn't paid back the taxpayers yet., and aren't promising they can. And all the GM stockholders were screwed over big time, too.
The unions, who are responsible for most of GM's problems... made out like bandits,
however.
GM should have been allowed to file bankruptcy-- like any other company that gets in trouble.
They would have still be able to operate under bankruptcy, too. The bankruptcy would have forced them to get their act together, and it would have been much cleaner that way.

Posted by: ohioan | November 18, 2010 11:12 AM | Report abuse

We'll be watching closely here all day on Political Economy.

The total offering size could be as large as $23.1 billion, according to GM in an announcement late Wednesday afternoon. At that amount, counting sales of preferred shares, the GM IPO would be the largest ever in the world.

The market is ripe for going up today. Futures on the Dow Jones industrial average rose 97 points to 11,092, and the S&P futures rose 13.4 points to 1190.90.

A couple things to keep in mind as you're following the news today:

- Will taxpayers be made whole?

The U.S. Treasury has chosen to sell half its stake at $33 a share, raising $23 billion. It's blocked from making any moves now for six months, and when it does decide to sell again, it must sell the rest of the government's ownership at roughly $53 a share in order to break even. So today's pricing movement alone won't tell us
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whether taxpayers will get their money back. However, if GM's stock shoots up today, there will be questions about whether Treasury decided to sell too soon.

- Who's buying the shares?

Posted by: Anonymous | November 18, 2010 11:17 AM | Report abuse

I love how people love to throw the word "socialism" around like it's a curse word.

The following things that we take for granted are, by definition, socialistic programs:

-Police and fire departments
-The military
-Social Security
-Medicare/Medicaid
-Public schools
-Public libraries
-Public works (roads, sidewalks, streetlights, public transportation, etc. -- infrastructure in general)
-Public hospitals and the EMS personnel that respond to take you to one (or to a private hospital, for that matter)
-Licensing standards for things like business, professional services, and driving privileges
-Fair labor rules and regulations, like safety standards and the minimum wage

There are others that I can't recall right now. The point is that our country would shut down if we didn't have some socialism. We've NEVER had a purely capitalistic society -- our country has always had socialist policies intertwined in our capitalist base. And we're better off this way.

Posted by: DontWannaMyPostID | November 18, 2010 11:22 AM | Report abuse

GM's product line is awful, but I'm sure that won't effect the stock price. Also, the economy is running out of gas so I'd be careful buying GM at such high levels.

Posted by: Anonymous | November 18, 2010 11:23 AM | Report abuse

Lots of sour grape cons on this thread that don't appreciate that Obama did well.

If they could twist it that the capital going into GM was a socialist plot they would but they can not.

Posted by: Emmetrope | November 18, 2010 11:26 AM | Report abuse

Sounds like I am betting against my own money.Invest my money into GM to pay back my bailout money to Gov.

Posted by: ms64111 | November 18, 2010 11:29 AM | Report abuse

If the government allowed me bankruptcy to write off my $200 billion in debts and then allowed me to sell $23 billion in equity shares...I would be one profitable SOB.

Moreover, let me dump trillions of pollutants in every sector of Flint and Detroit, abandon those yards due to harmful materials and then change the name of the company which did these things. That way, when the deaths, diseases and lawsuits begin, there will no one to stand for them.

America the beautiful...the most hypocritical and short-sighted nation on the globe...at least in these modern times.

Posted by: TheFreeMan | November 18, 2010 11:32 AM | Report abuse

Little Timmy spent some more treasury on new cars for the fattty Fed.... Woopee.
Staying in Gold is wiser.

Posted by: Anonymous | November 18, 2010 11:43 AM | Report abuse

Go ahead and buy GM stock...and then get screwed over just like the GM bondholders who were robbed by the government for the benefit of the UAW.

Not terribly different from doing business with the Mafia. And just as bad an idea.

Posted by: acoberst1 | November 18, 2010 11:45 AM | Report abuse


To all the Repugnant-

Teabagging 'nay-sayers' who opposed

the GM bail out, SHUT YOUR PIE-

HOLE !!!!!!!!!!!


Posted by: bsbuster | November 18, 2010 11:46 AM | Report abuse

Gee ...this didn't make me want to forget that Congress has a retirement I don't want to pay for, (especially when Obama screwed me out of it as a dictator taking over GM so I lost mine), and still no term limits yet.

Republicans better put the bill for Congressional term limits up next week, or Confidence will remain low.

Congress and Obama should only get a $1.00 salary 2011. They suck.

Posted by: Anonymous | November 18, 2010 11:48 AM | Report abuse

Trust Obongo and Moochelle?
Are you nuts?

Posted by: Anonymous | November 18, 2010 11:51 AM | Report abuse

Look at these fools in the video clapping like monkeys.

Posted by: jamalnasir_2000 | November 18, 2010 11:56 AM | Report abuse

Thank you Mr. President, House Speaker Nancy Pelosci, Senate Majority Leader Harry Reid, the Democratic House and the Democratic Senate. It was your foresight and strong belief in the American product and system that kept GM afloat through the financial down turn. All of you made the right decisions and push an American product when your fellow Republicans turned their backs.

For what it is worth I believed in you then and I believe in you now. Keep up the good work. Let the evidence speak for itself.

Posted by: Anonymous | November 18, 2010 12:01 PM | Report abuse

Every taxpayer should have had the ability to participate in this IPO, but GM did not ensure this could happen. Many taxpayers were left out of the IPO.

Instead, GM made sure that all the hedge funds that want a piece got in on the action.

GM's loyalty to unions and hedge funds OVER the American taxpayer is disgusting.

I will never buy a GM car again.

Posted by: Anonymous | November 18, 2010 12:04 PM | Report abuse

As long as I'm alive, my family will NEVER own a GM product - EVER! This embarrassing company deserved to FAIL!!! That union deserved to FAIL!!! LET THEM FAIL OBAMAA!!!!!!!! Government Motors? I SPIT on them!!! Real Americans buy Ford... we now own two Fords... Go to hell General Motors!!!

Posted by: egrib | November 18, 2010 12:12 PM | Report abuse

"(especially when Obama screwed me out of it as a dictator taking over GM so I lost mine), and still no term limits yet."

Lying revisionist. The auto bailouts started under Bush. And, the auto execs came to Washington begging for money. Just like when you buy a house or car, the bank owns the property till it's paid off.

Posted by: Anonymous | November 18, 2010 12:13 PM | Report abuse

This oughta shut the extremists on the Right Wing up. Ah, who are we kidding?

Posted by: SmallBusiness | November 18, 2010 12:20 PM | Report abuse

Good job President Bush and President Obama!

We need U.S. automakers with their headquarters in the U.S.

This creates a strong nation, a prosperous nation.

The actions taken by President Bush and Obama show that they care about our people, our communities, our families.

Now let's get out of Iraq!

Posted by: camasca | November 18, 2010 12:23 PM | Report abuse

In reality the taxpayers and unions are going to take a huge hit on this. I suggest that the WAPO reporter sit down with a professional trader and have them explain how this is all going to play out.

You want a real story, "Geithner Orchestrates Stock Scam of the Century!" will be your headline.

Posted by: Anonymous | November 18, 2010 12:29 PM | Report abuse

Thank you, President Obama!

Posted by: Anonymous | November 18, 2010 12:47 PM | Report abuse

This travesty is being touted as a success? The Feds sell nearly 60% of their investment for their take of about $17 billion. The rest goes to unions and Canada. Do the math. This represents a huge loss for the American taxpayer. And apparently GM success is highly dependent on additional welfare payments, i.e., the $7,500 tax credit for buying a Chevy Volt. Where is that money coming from? It only makes the unreported loss worse.

Posted by: doug7772 | November 18, 2010 12:52 PM | Report abuse

If some of the dozen or so small businesses around me had received federal bailouts, they wouldn't have failed either and could probably have paid back the loans. Any way you shake it GM's bailout was crony capitalism. Obama has been champion of the big corporations since his election.
Sterling Greenwood/AspenFreePress

Posted by: AspenFreePress | November 18, 2010 1:00 PM | Report abuse

Eisenhower's Defense Sec. once said "what's good for GM is good for the USA."

Now it seems - what's good for GM is TERRIBLE for the USA.

Posted by: Anonymous | November 18, 2010 1:02 PM | Report abuse

Only a fool would buy these crooks stock.
They didn't pay suppliers over $3.4 Billion owed under bankruptcy laws, have not been profitable in years - only GMAC was profitable and holding them up.
GM is not well run and never was.
How do I know this? Former GM employee and supplier. I could tell you stories that would make your blood boil.

Posted by: debmries | November 18, 2010 1:24 PM | Report abuse

How do you short this thing? Anxiously awaiting proper level as UAW biggies cart off Bamabucks to Vegas to cover markers, and to the nudie bar to cover those lapdances. Did I hear something like "New condos going up!"?

Posted by: phvr38 | November 18, 2010 1:30 PM | Report abuse

Interesting how the GM IPO all of a sudden became "bigger" after China expressed interest in buying into GM last week.

Posted by: wcmillionairre | November 18, 2010 2:04 PM | Report abuse

Only a fool would buy Government Motors stock.

Since His Highness seized GM and Chrysler, they have produced nothing but Obama Clunkers.

According to Edmund's and other auto experts, GM and Chrysler produced the seven worst cars in the world in the past two years.

Heck of a job, Barry.


Posted by: Jerzy | November 18, 2010 2:05 PM | Report abuse

GM >> EV1.ORG > pass on >> Google>taxes we pay<<CAREER politicians picking our pockets for decades..as well as PICKING Soc.Sec dry..POLITICIANS did that..and now we have (3) Healthcare systems...amasing..Look at your util/phone bills if you REALLY think Companies pay more taxes..Fees/taxes..DUMMY charges all passed down to CONSUMER...GET IT YET...pass it on..maybe a LIGHT will go off to someone..

Posted by: rw62827 | November 18, 2010 2:18 PM | Report abuse

GM >> EV1.ORG > pass on >> Google>taxes we pay<<CAREER politicians picking our pockets for decades..as well as PICKING Soc.Sec dry..POLITICIANS did that..and now we have (3) Healthcare systems...amasing..Look at your util/phone bills if you REALLY think Companies pay more taxes..Fees/taxes..DUMMY charges all passed down to CONSUMER...GET IT YET...pass it on..maybe a LIGHT will go off to someone..

Posted by: rw62827 | November 18, 2010 2:18 PM | Report abuse

This is NOT a "good deal" for individual investors, or the American taxpayer, contrary to what apologists of Mr. Obama will have you believe.
The Country will lose massive amounts of bailout money NEVER to be repaid, and GM will be right back in the "bailout-line" after a huge loss on the Volt.

Bottom line, same-old GM (talk to their people to confirm this) will yield same-old results; failure.

All I can say is THANK GOODNESS the Corvette survives!

Geesh...

Posted by: wcmillionairre | November 18, 2010 2:25 PM | Report abuse

Wait a minute. GM is MAKING MONEY after the vile socialist Kenyan fired the former CEO Waggoner who had turned the biggest automaker in the world into a basket case in just 10 years? Hang on. The Republic Party wanted GM to go down in flames because it's unionized and they could deal a heavy blow to their bitterly hated nemesis. Better luck next time Republic Party.

Posted by: mongolovesheriff | November 18, 2010 2:43 PM | Report abuse

In business, you strive for "win-win".
This deal, however, is anything But!
the bond holders got screwed, the shareholders got screwed, GM still owes billions to taxpayers and they're not promising we'll ever get back.
But Obama's greedy union buddies won!

Posted by: ohioan | November 18, 2010 2:52 PM | Report abuse

Republicans are in extreme pain.

The GM bailout was the right thing to do, and it is now a resounding success for the country.

Posted by: Anonymous | November 18, 2010 3:33 PM | Report abuse

It's really sad to see all these comments hoping GM will fail.

It just demonstrates how some people don't care about their country or the people in it, just their own ideology.

Clearly their hatred of Obama takes precedent over everything else.

Posted by: Anonymous | November 18, 2010 4:01 PM | Report abuse

Are we fools to invest in companies like GM. Just bankrupt few years ago and all investors losing all the money.

Posted by: Anonymous | November 18, 2010 4:02 PM | Report abuse

The incredible amount of Republican fear that a great US industrial company will make a recovery is really amazing. Talk about partisan!

Posted by: Anonymous | November 18, 2010 4:12 PM | Report abuse

If it is was up to the Republicans / Tea pots
All new cars bought in America would be foreign, not counting the millions of just that would be lost. That the car industry is
alive and well is through the efforts of President Obama and the Democrats. I give credit where credit is due.

Posted by: Anonymous | November 18, 2010 4:15 PM | Report abuse

Blame America First Republicans would rather see GM and a million jobs disappear than to give any credit to President Obama. What partisan morons!

Posted by: Anonymous | November 18, 2010 4:36 PM | Report abuse

I'm not surprised by the usual irrational reactions of the Obama-haters. Had a conservative saved the country's auto industry, the same people would be hailing him as a hero. Isn't it important for the country to make SOMETHING other than fast food?

Posted by: MidwaySailor76 | November 18, 2010 4:42 PM | Report abuse

It’s rather amusing that Tea Party parasites who were hoping GM would fail are on the blog trashing the highly successful IPO after one of the greatest turn around in corporate America.

It’s really pathetic that right wing parasites who typically referred to themselves as “patriots” would have preferred for the company to fail and with it the lost of hundreds of thousands of manufacturing jobs in the good ole USA.

Way to go GM – A job well done!

Great job Mr. President for your efforts in preserving American jobs and ignoring these hypocritical parasites!

Posted by: Citi__Street | November 18, 2010 4:48 PM | Report abuse

Here's a feather for your cap, Mr. President.

Posted by: johng1 | November 18, 2010 4:49 PM | Report abuse

Unions virtually built the middle class in this country. In fact, if you're lucky enough to work 40 hours a week at a job that offers you a decent wage, health benefits and work place safety, you can thank the union movement.

Posted by: MidwaySailor76 | November 18, 2010 4:51 PM | Report abuse

Yes, Midway, the detractors here are the same people praising Wal-Mart and pushing for Wal-Mart to move into DC?!?

Posted by: johng1 | November 18, 2010 4:58 PM | Report abuse

Let's see what Hopey Dopey has to say about GM stock six months from now. Buyer beware!

Posted by: Anonymous | November 18, 2010 4:59 PM | Report abuse

Republicans stood behind the Auto bailout and it succeeded oops it was Obama. Well at lease the GOP and Tea Party can take credit for the success and people will believe it.

Posted by: qqbDEyZW | November 18, 2010 5:02 PM | Report abuse

It's amazing how the crazy teabaggers want the U.S. auto companies to fail. Can you be any more unpatriotic than a 'bagger?

Posted by: Anonymous | November 18, 2010 5:08 PM | Report abuse

GM is like the Redskins, any little change is jumped on as a sign of a return to glory, only to evaporate into the same old mist.

Posted by: Anonymous

===========================================

Really, is there any evidence that GM addressed the fundamental issues that caused the rot in the first place? If not in a few years GM will face bankruptcy, beg the government to bail them out and those buying shares today will be just as screwed as those who owned stock before.

Posted by: bbface21 | November 18, 2010 5:08 PM | Report abuse

It’s really pathetic that right wing hypocrites who typically referred to themselves as “patriots” would have preferred for the company to fail and with it the lost of hundreds of thousands of manufacturing jobs in the good ole USA.

Way to go GM – A job well done!

Great job Mr. President for your efforts in preserving American jobs and ignoring these parasites!

Posted by: Citi__Street | November 18, 2010 5:23 PM | Report abuse

What about the John Q. Public stockholders? Do they get their money back??

Posted by: pjcafe | November 18, 2010 5:29 PM | Report abuse

an almost no-lose situation for the investor... at least for 6 months.

US govt cannot sell it's share for 6 months.... thus they will support GM for at least that long.

We will never know what the balance sheet for GM actually looks like.... because the feds will just take more stimulus money to demonstrate a "profit"....

after 6 months.... then maybe we will have some idea of what is going on.

Posted by: docwhocuts | November 18, 2010 5:36 PM | Report abuse

The economy will bounce back. Government spending created many jobs in the Great Depression, Hoover Dam for example. Some view that as socialism, others as a wise public investment.

- new; Balkingpoints / www

Posted by: RField7 | November 18, 2010 5:37 PM | Report abuse

Government Motors is nothing more than a UAW Welfare Organization that just happens to make a few cars as a hobby.

So why would anyone with even a single brain cell "invest" in such a joke of a company? Because no matter what happens to the car-making hobby portion (which might actually make some money thanks to $45+ BILLION in tax breaks the d-crat socialists have provided them -- and then there's the remaining portion of the $50 BILLION in bailout money that they still enjoy), the expectation is set that the lunatic-left d-crat socialists will use US taxpayer money to bailout the main part of Government Motors - the union goons and their gold-plated salaries, benefits and pensions. So, like a BIG BANK, investors in Government Motors can't lose - only taxpayers can.

Posted by: Anonymous | November 18, 2010 5:40 PM | Report abuse

To call this a success at this time is similar to revamping a school system at one school and then calling it a success after a single semester.

Posted by: CalP | November 18, 2010 5:43 PM | Report abuse

The price on this IPO make absolutely no sense. GM is a mess, car sales overall are down by almost 50%, and nothing GM has announced would give any indication that GM stock was worth this price. I see "sucker" stamped on some foreheads. This stock has no place to go but down.

Posted by: Desertdiva1 | November 18, 2010 5:50 PM | Report abuse

Obama and the authors of this column curiously failed to mention how much the government pumped into GM and then the unfettered access GM has to TARP funds to pay back on the loan to the government. Hell, with an endless supply of government (taxpayers) funds to borrow and steal, who wouldn't bet on GM as a sure win.

Give me an everlasting break!


Posted by: jpfann | November 18, 2010 6:37 PM | Report abuse

I did not vote for him, but here's to President Obama for doing the right thing and saving GM. As with the use of selective import quotas during the Reagan administration, we again see that smart industrial policy and planning can save good quality U.S. jobs.

This country could stand more industrial policy and managed trade to save and grow even more jobs.

Posted by: Anonymous | November 18, 2010 6:37 PM | Report abuse

They are profitable because the tax-payer owns their debt! Enron would be a profitable business if Uncle Sam had purchased all of their debt.

Posted by: SSTK34 | November 18, 2010 6:39 PM | Report abuse

Will it work on California? Their economy is a fraud and draging down the nations economy.On the low side they are unfunded to the tune of 375billion to 500 billion.Thats unfunded debt owed union employees.Not including the 100billion here and a 100 billion financed there.Every county,city is broke or soon to be broke.1 million people are out of work,60thousand this last month.Not including the immigrant population that has escaped across the border to the fiscally responsible Mexico.So Pres when are we bailing calif out,Nancy might be banging on your back door soon..many here are losing their back door.

Posted by: jmounday | November 18, 2010 6:48 PM | Report abuse

wow, spend 70 billion and get back 20 billion
and its a big success ?? By all means , lets do this a dozen more times. Lets see what this word "success" means ...it had an original meaning but now leftists and dems seemed to have changed it. Winning by losing 50 billion...wowzers. def #2 seems to alude to wealth, but I thought we lost $50 billion...perplexing


suc·cess
   /səkˈsɛs/ Show Spelled[suhk-ses] Show
–noun
1.
the favorable or prosperous termination of attempts or endeavors.
2.the attainment of wealth, position, honors, or the like.

Posted by: Anonymous | November 18, 2010 6:53 PM | Report abuse

Uhhh. They PAID BACK THE MONEY THEY BORROWED WITH MORE MONEY ***THEY BORROWED***.

Don't ANY of you get this?

Posted by: Anonymous | November 18, 2010 7:15 PM | Report abuse

The stock will be in the low teens by next week.

Posted by: Anonymous | November 18, 2010 7:37 PM | Report abuse

The UAW thanks all taxpayers for saving their jobs, pensions and cadilac medical plans, and to show their gratitude all taxpayers will be permitted to purchase low quality overpriced union made autos for years to come until we have squeezed the last and final drop of life out of GM and the final UAW member has expired. Thank you.

Posted by: droberts57 | November 18, 2010 7:49 PM | Report abuse

Anyone with half a brain will immediately short GM stock and make a tidy profit.

Posted by: Desertdiva1 | November 18, 2010 7:50 PM | Report abuse

One day, not only the media but the right wing of this country will have to acknowledge that Obama probably saved the country from sliding into a depression. Until then, brace yourself for more whining and finger-pointing from the party that has offered no solutions other than "more tax breaks for the top 1%".

Posted by: Anonymous | November 18, 2010 7:57 PM | Report abuse

The stock offering should not cause investors any concern and my prove to be a good investment. But investors should and probably will be very reluctant to invest in any GM corporate bonds. Recall it was the bond holders who paid for the GM bankruptcy. They wanted liquidation, as is normally their right, and were instead completely wiped out due to the exceptional deal the administration worked in the bankruptcy court. That deal is certainly adn example of the old Chicago gangster style implemented on the national stage. I would think memories of swindle should make any future GM bond investors very skittish indeed.

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Posted by: Anonymous | November 18, 2010 8:04 PM | Report abuse

" Vote Obama in 2012!"

That's one.

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Posted by: Anonymous | November 18, 2010 8:23 PM | Report abuse

It worked. We -- our federal government -- saved GM and tens of thousands of jobs. Now we'll hear from hoping-we-fail haters about how bad this is. They're mad as hell at Obama for doing what was right by the American worker.
Tough bush for them.

Posted by: jimsteinberg1 | November 18, 2010 8:28 PM | Report abuse

Obamaland's version of reality. When HE bailed out GM/Chrysler, the shareholders and bondholders were shafted and in fact _itchslapped as nothing more than "speculators who deserved their losses". Today, basking in all HIS glory with the GM IPO, the investors suddenly were not scum speculators but "wise" and well reasoned for seeing the Greatness of what TheOne and his policies and were in fact rewarding HIM.

Posted by: bobcatbuzz | November 18, 2010 8:38 PM | Report abuse

The price on this IPO make absolutely no sense. GM is a mess, car sales overall are down by almost 50%, and nothing GM has Uhhh. They PAID BACK THE MONEY THEY BORROWED WITH MORE MONEY ***THEY BORROWED***.

Don't ANY of you get this?

Posted by: Anonymous
-------------------------------------------
You don't seem to get the main idea behind capitalism.

Posted by: Emmetrope | November 18, 2010 8:43 PM | Report abuse

I'll bet when the sun shines in Washington, D.C. or anywhere else in the known universe, Obama probably claims credit.

Posted by: Anonymous | November 18, 2010 8:53 PM | Report abuse

Bail out only worked for the unions, no one else and Obama even without blinking tells the public it worked. Let us see how GM is going to do in next 10years and I am sure the union benefit is going to swallow GM again. Instead of fixing the legacy problem we have stuck our head in the sand and gave the union billions of dollars while wiping out the asset of the investors and we call this a democracy. Wait until 2012 and Obama will be shamed in front of the whole world with his tail between his two legs and be kicked out of white house.

Posted by: chaemoondriver | November 18, 2010 9:10 PM | Report abuse

Maybe when GM starts paying back the money it was loaned without using TARP money, we can talk success.

Posted by: moebius22 | November 18, 2010 9:20 PM | Report abuse

Congratulations Obama Administration & GM!

You proved the cynics, obstructionist, and Evil naysayer's wrong!

You did what the GOP could not do.

Keep up the good work GM, because you still owe us the balance of our Treasury.

Posted by: lcarter0311 | November 18, 2010 9:40 PM | Report abuse

Only the government would consider it a success to buy stock at $43.84 a share and sell it at $33. -- But President Obama and those who supported his bailout of General Motors and Chrysler are claiming just that today.

Posted by: Anonymous | November 18, 2010 10:23 PM | Report abuse

I fail to see anythijng to crow about.
GM was so poorly run that they ought just to have dissapeared. They ought to be showing a little humility rather than hubris. That would indicate that the "New GM" was actually viable going forward.

I see a Chapter "22" and then "33" as their future at some point.

Posted by: JohnRCarroll | November 18, 2010 10:37 PM | Report abuse

General Motors looks good. But what is this Motors Liquidation Co that I am part of as a General Motors bond holder.

My brother sold his bonds at 8 cents on the dollar while I held on to bonds and found mayself in this liquidation co after Obama saved the autos. Oddly, the government seems to have created it own law for all this. And I begin to wonder if our government is the law with Obama the law maker.

Obama also saved the banks by changing the accounting rules. I have no idea as an investor about how to value a corporation. Is all this like the movie Blazzing Saddles where you see the front of a town which has no back. The movie had a good ending but I get the feeling that the story of United States will not.

Posted by: Anonymous | November 19, 2010 7:30 AM | Report abuse

Uhhh. They PAID BACK THE MONEY THEY BORROWED WITH MORE MONEY ***THEY BORROWED***.

Don't ANY of you get this?
================
Sure I do. GM received 50 billion in funds plus other "incentives". For full payment of the Treasury’s investment, the share price must rise from its current level in the mid-30s to more than $50. So I'm not sure how taking a loss is such a resounding success. Oh that's right it's the Obama administration doing the math. Where upside down is right side up. Lucky for Obama people don't bother to check facts before declaring him the messiah.

The smart money is in shorting GM stock today.

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