The Obama regime announces General Motors exit strategy, taxpayers could lose billions
The Obama regime has announced its exit strategy in regards to their takeover of General Motors, so here is the good news: The Obama regime will sell 40% of its ownership stake in the company shortly and by March of 2014 the regime will sell all of its stock in the company.
Now for the bad news:
Still, taxpayers will almost certainly lose billions of dollars in the $49.5 billion GM bailout – and the government would need to sell its remaining shares for about $70 each to break even. If the government sold the rest of its stock at current prices, taxpayers would lose more than $13 billion. But profits from the bank and AIG bailouts will largely offset the auto bailout losses.
The taxpayers stand to lose billions of dollars in this deal and this is what Barack Obama considers to be a success story as he continues to claim that he saved the auto industry with this bailout.
All this proves to me is that Mitt Romney was right all along: We all would have been better off if General Motors was allowed to file for bankruptcy. If General Motors was allowed to file for bankruptcy they probably would have emerged with a plan similar to the one imposed on them by the Obama regime with the only difference being that the taxpayer wouldn’t be on the hook for the loses.
Despite what Barack Obama claimed during the campaign Mitt Romney wasn’t for the liquidation of General Motors but rather for letting the company go through the long standing bankruptcy procedure so they could emerge from bankruptcy with a plan for the future that wouldn’t have included the American people picking up the tab for the failures of General Motors or their mismanagement.