IT’S OFFICIAL: GOVERNMENT INVESTMENT IN G.M. IS A STINKER
Let me get this straight: the government forces the big banks to take TARP infusions they neither want nor need, makes money on the deal, and the banking industry gets vilified in the media for having to get bailed out. Yet when the government bails out General Motors, screws bondholders in the process to help the UAW, and then loses 50% or so on its investment, the outrage meter barely budges. Got it. . . . P.S. This is not to say the government shouldn’t have provided G.M. with special assistance during its bankruptcy. It should have. But the end result should have been a company that’s fully cost competitive with foreign transplants. That didn’t happen. G.M. is still a basket case and will likely need more help from the feds down the road. . .
2 Responses to “IT’S OFFICIAL: GOVERNMENT INVESTMENT IN G.M. IS A STINKER”
The point of forcing relatively safe banks to take Tarp money was to help finance the losses that were going to result from poorly run banks and other bailed out companies. All part of crony capitalism. (obviously not real capitalism)
Many REITs price are too expensive, do you think it’s a good time?So far only Far East Hospitality Trust still ok to buy, ohetrs are at the high peak now.
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