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GM, we want our money back!

November 3, 2010

General Motors management (GM) noticed that the American people were buying Germans and Japanese cars more than they were buying GM cars. What did they do about it? They kept producing GM cars that Americans wouldn’t buy. GM went bankrupt. The US government bought GM with our money with the hope that may be Socialism in the US will help save Capitalism. The old GM company dies and the shares of millions of middle class investors became worthless. A new GM was chartered owned by the US government. It started making new GM cars with the hope that may be now the American people will buy them. Apparently it isn’t happening fast enough so the new GM management decided to advertise how great the new GM management is and how wonderful the new GM cars are. This week the new GM company is going IPO, meaning it is issuing new shares to the public. They think that hedge funds and other speculative financial organizations will buy enough of the new shares so GM can pay off its debt to the US government and be free to operate again – as it wishes! Chances are that GM will raise a few billion dollars and pay back the government. The tax payers will get the bulk of their money back, not you and I as investors, but the general public represented by the US government. Socialism has bailed out Capitalism. It works every time we bailout someone in this world who doesn’t do their homework. This is the new American way of shooting oneself in the foot.

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One Comment leave one →
  1. November 6, 2010 2:16 pm

    Sorry, your comment has to be in English for my readers to read it.

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