Obama's GM 'Success Story' Headed for Bankruptcy

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Obama's GM 'Success Story' Headed for Bankruptcy

 

Automaker CEO suggests hiking gas prices to "encourage" buyers to off-set his company's financial woes.

 

By Arnold Ahlert · August 18, 2012

 

On the campaign trail, Barack Obama's signature definition of "success" is the government bailout of General Motors. "I said I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back," he told an audience in Pueblo, CO last week. "Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry." That pronouncement should send a shiver up the spine of every American, due to an inconvenient reality: according to Forbes Magazine, GM is likely headed for bankruptcy all over again.

The numbers are stark. The 500,000 shares of GM stock, comprising 26 percent of the company owned by the government -- or more accurately the American taxpayer -- sold for $20.21 on Tuesday. This left the government holding $10.1 billion worth of stock representing an unrealized loss of $16.4 billion. Even worse, in order to reach the break-even point, the stock would have to sell for around $53 per share.

The numbers remain in flux. As Investors Business Daily reveals, the read more

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