The Universe Exists for My Amusement

It was bad enough when beancounters ran General Motors, now we’ve got socialists running the joint.

Return on investment in Government Motors is an oxymoron.

Uncertainty Clouds Recovery of Government’s Investment in GM.

“I don’t know how much we’re going to recover,” a senior Obama administration official said as the company headed into bankruptcy last month.

This uncertainty stems from the difficulty in valuing the 60 percent GM stake that the United States will receive in exchange for the public investment. The government also gets preferred shares and other compensation.

The stake will be worth enough to fully cover the government’s direct investment only if GM’s stock rises above $68 billion. Even at its recent 2000 peak, GM’s stock was worth only $56 billion.