Tuesday, November 23, 2010
"GM selling at a loss should tell you something"
U.S. Government - "Have I got a deal for you!".
Usually, you have a choice to protect your money, but not here...
Usually, you have a choice to protect your money, but not here...
Iain Murray explains the General Motors fiasco at DailyCaller.com:
"When a government sells stock in a company, it is usually trying to maximize short-term revenue. Therefore, the share price is normally pegged at what the market will bear. If the valuation of the total stock offering is less than the value of the company (or a portion thereof) being sold, something is amiss. That is certainly the case with the initial public offering of GM stock sold to investors on November 17. The stock price is telling us something the federal government doesn’t want to admit, all the rhetoric about the supposed success of the GM bailout notwithstanding."
