Omaha Classifieds

GasBuddy News Article

votes

Taxpayers are likely losers in first GM stock offering

USA Today -- American taxpayers are likely to be losers when it comes to the first public offering of General Motors stock, Reuters is reporting.

Reuters, quoting six unnamed people, says the initial round is likely to be priced below what would be needed to put the the federal government on track to make a full recovery of the $50 billiion it sunk into GM last year to try to save it. But in later years, subsequent offerings may be priced at levels that would allow taxpayers to be fully paid back for saving the world's largest automaker.

The Treasury could take three years to sell down its remaining shares in GM, well into the next presidential term, and it would be years as well before taxpayers are made whole, if they ever are, on their investment, the news agency says.

Read the Full Article

Submitted Sep 07, 2010 By: BurntOrange

Back To News

Category: Daily News Article Discussions > Topics	Add to favorite topics

Author	Topic: Taxpayers are likely losers in first GM stock offering	Post a Reply Back to Topics

REPLIES (newest first)

Sneakers55 Champion Author Houston Posts:43,327 Points:1,711,955 Joined:Nov 2005	Message Posted: Sep 8, 2010 11:29:21 PM Ignore Sneakers55 Report Abuse latruck wrote: >Some people just do not like American companys No problem here with American companies, just GM. >remember the old saying , what is good for GM, is good for America.. The old saying got munged in translation. Hangar queen cars are not good for America. We have better things to do than wait for Mr. Goodwrench. >Believe in America. Auto workers pay 40% taxes roughly,payroll,sales, gas, ss etc, Retire. Go into a lower income tax bracket. Have most if not all of your income be FICA exempt. >I'm happy to pay my taxes , a proud American No more bailouts, taxed enough already. Let Government Motors liquidate next time. [Edited by: Sneakers55 at 9/9/2010 12:34:24 AM EST]
latruck Rookie Author Indianapolis Posts:6 Points:158,345 Joined:Aug 2009	Message Posted: Sep 8, 2010 6:01:18 PM Ignore latruck Report Abuse Some people just do not like American companys, remember the old saying , what is good for GM, is good for America.. Believe in America. Auto workers pay 40% taxes roughly,payroll,sales, gas, ss etc, I'm happy to pay my taxes , a proud American
Sneakers55 Champion Author Houston Posts:43,327 Points:1,711,955 Joined:Nov 2005	Message Posted: Sep 8, 2010 5:42:43 PM Ignore Sneakers55 Report Abuse Night Owl wrote: >If it weren't for the taxpayers, GM would have gone bankrupt. You would >think that GM would be grateful to the U.S. and Canadian taxpayers that >saved them. GM should ensure that taxpayers are fully paid back. GM doesn't have to ensure that taxpayers are fully paid back. It's TARP money. Our Government took unregistered stock in return for cash. It'll be interesting what GM's top management has to say in the roadshow. The S-1 does have a HUGE number of reasons not to purchase GM stock.
Sneakers55 Champion Author Houston Posts:43,327 Points:1,711,955 Joined:Nov 2005	Message Posted: Sep 8, 2010 1:47:50 PM Ignore Sneakers55 Report Abuse Martinman wrote: >Second, virtually all major auto manufacturers are multi-national corporations. The difference is in where they >are headquartered. That is where the profits are funneled, and a majority of research, design, and testing are >done. The last I read on the subject, GM established three global design centers. Opel (GM Europe) got the FWD cars, Holden (GM Australia) got the RWD cars, and GM North America does trucks. >Third, to make the assertion that a majority of the parts in all GM vehicles are made in China is an extreme >stretch at best. Okay, how about an outright lie. There's legal language controlled by the Federal Trade Commission here. When all they can say is "globally sourced parts," it's a really good indication they came from elsewhere. Specifically, they can't qualify for "assembled in the United States from domestic and foreign parts" as that requires more domestic parts than GM is willing to do.
Sneakers55 Champion Author Houston Posts:43,327 Points:1,711,955 Joined:Nov 2005	Message Posted: Sep 8, 2010 12:13:40 PM Ignore Sneakers55 Report Abuse Martinman wrote: >General Motors has more vehicle assembly plants and parts manufacturing plants >in the U.S. than any other auto manufacturer. They should, they still hang onto a #1 market share (mostly through moving a lot of unprofitable fleet business through the plants to keep them running). And I thought most of the parts plants were spun off to Delphi. They have the advantage that every little Podunk has a GM dealer (usually Chevrolet). There are counties in Texas that don't have a county health department but they have a Chevy dealer. Maybe they can convince the Chevy dealer to let them give flu shots in the showroom... or will the Ford dealer be more civic-minded? If I get a compulsion to Buy American, it'll be a Ford. GM has done too much junk over too many years to trust them.
Lasing Champion Author Colorado Springs Posts:11,734 Points:1,844,400 Joined:Aug 2006	Message Posted: Sep 8, 2010 11:12:58 AM Ignore Lasing Report Abuse Martinman, Agreed. Good post!
Martinman Champion Author Mississippi Posts:11,756 Points:1,658,215 Joined:Sep 2005	Message Posted: Sep 7, 2010 8:04:08 PM Ignore Martinman Report Abuse First, it's General Motors. But unfortunately, some again show how you can't educate stupid. Second, virtually all major auto manufacturers are multi-national corporations. The difference is in where they are headquartered. That is where the profits are funneled, and a majority of research, design, and testing are done. Third, to make the assertion that a majority of the parts in all GM vehicles are made in China is an extreme stretch at best. Okay, how about an outright lie. General Motors has more vehicle assembly plants and parts manufacturing plants in the U.S. than any other auto manufacturer. Ford is a close second. Not Toyota. Not Nissan. Not BMW. Fourth, while a number of foreign-owned assembly plants have "sprung-up" in the U.S. over the past decade, they have come at a high-cost to American taxpayers. The majority of these assembly plants have received more than A QUARTER BILLION DOLLARS in tax-deferments, tax credits, and other sources of state-level subsidies - at hugh costs to local and county governments. In one case, the property improvements need before plant construction began, were done using NATIONAL GUARD troops. Ya gotta love that, using National Guard troops to benefit a foreign corporation. Thank you Senators Shelby and Sessions of the State of Alabama.
Sneakers55 Champion Author Houston Posts:43,327 Points:1,711,955 Joined:Nov 2005	Message Posted: Sep 7, 2010 4:20:01 PM Ignore Sneakers55 Report Abuse latruck wrote: >GM is American, some people just do not like american companys The only accurate statement you can make about Government Motors is the headquarters is in the city of Detroit. They've been a multinational for decades now. All they are allowed to say now about their vehicles are "assembled in the United States of globally sourced parts." Wake up, Government Motors fanboys! Most of your Chevrolet came from China! >or they do not want to help a family send the kids to college, or take a vacation , or buy a house Greenfield transplant plants have been ramping up faster than Detroit has been shutting down. The last I looked, Honda and Toyota paychecks spent just as well as the kind that Government Motors managed to barf up. >they want everybody on welfare or unemployment, About half of the job losses are in construction, a major consumer of those profitable heavy work trucks where Detroit owns 90% of the market. Housing construction got wrongsized, many more new household units than the market can consume. The Baby Boom market isn't going to continue forever. >American jobs that pay good wages , help pay the taxes , that the super rich avoid. Social Security only gets collected from earned income. Pensions, interest, dividends, and IRA withdrawals are not earned income. Retire, and you can escape a good bit of taxation! [Edited by: Sneakers55 at 9/7/2010 5:26:41 PM EST]
Nicoalbum Champion Author Ottawa Posts:3,576 Points:722,260 Joined:Jan 2010	Message Posted: Sep 7, 2010 4:11:30 PM Ignore Nicoalbum Report Abuse Disgusting.
BMW2014 Champion Author Toronto Posts:1,794 Points:364,300 Joined:Jun 2010	Message Posted: Sep 7, 2010 1:27:55 PM Ignore BMW2014 Report Abuse Nothing new. Taxpayers always are on frontline.
latruck Rookie Author Indianapolis Posts:6 Points:158,345 Joined:Aug 2009	Message Posted: Sep 7, 2010 1:21:51 PM Ignore latruck Report Abuse GM is American, some people just do not like american companys, or they do not want to help a family send the kids to college, or take a vacation , or buy a house, they want everybody on welfare or unemployment, American jobs that pay good wages , help pay the taxes , that the super rich avoid.
Night Owl Champion Author Toronto Posts:5,260 Points:1,332,750 Joined:Jul 2004	Message Posted: Sep 7, 2010 1:16:03 PM Ignore Night Owl Report Abuse If it weren't for the taxpayers, GM would have gone bankrupt. You would think that GM would be grateful to the U.S. and Canadian taxpayers that saved them. GM should ensure that taxpayers are fully paid back. [Edited by: Night Owl at 9/7/2010 2:16:24 PM EST]
Sneakers55 Champion Author Houston Posts:43,327 Points:1,711,955 Joined:Nov 2005	Message Posted: Sep 7, 2010 12:19:39 PM Ignore Sneakers55 Report Abuse ramammoth wrote: >So all the naysayers are against GM succeeding? Some patriots. Government Motors has been failing for decades, anyone who has looked at their market share could come to that conclusion. Things went downhill when they made the mistake of hiring a one-time P&G brand manager who assumed you could make cars like Cheer and Tide. (Hint: the fragrance and the color of the box.) I suspect the Viability Plans and the new squeaky-clean balance sheet may keep them alive a while longer.
uglytom Champion Author Florida Posts:5,673 Points:1,187,885 Joined:Jul 2007	Message Posted: Sep 7, 2010 11:54:36 AM Ignore uglytom Report Abuse What's new?
PathfinderSC Champion Author South Carolina Posts:7,165 Points:1,365,980 Joined:Mar 2008	Message Posted: Sep 7, 2010 11:19:49 AM Ignore PathfinderSC Report Abuse Most of the time, The Taxpayers are always the losers.
ramammoth Champion Author Modesto Posts:1,389 Points:278,565 Joined:Mar 2007	Message Posted: Sep 7, 2010 10:05:58 AM Ignore ramammoth Report Abuse So all the naysayers are against GM succeeding? Some patriots.
mikaye Champion Author Cleveland Posts:1,801 Points:456,570 Joined:Jun 2010	Message Posted: Sep 7, 2010 10:01:06 AM Ignore mikaye Report Abuse why would they make an effort when the government protects them from consequences?
realtorguzzler Champion Author Florida Posts:1,488 Points:259,210 Joined:Jun 2010	Message Posted: Sep 7, 2010 9:44:15 AM Ignore realtorguzzler Report Abuse Pie in the sky.
afghaned Champion Author Hamilton Posts:8,498 Points:820,950 Joined:May 2004	Message Posted: Sep 7, 2010 9:43:44 AM Ignore afghaned Report Abuse Close your eyes, click your heels togetehr three times & repeat over & over - Elections are on the horizon!!!
Hilsgal Sophomore Author Utah Posts:229 Points:235,615 Joined:Oct 2006	Message Posted: Sep 7, 2010 9:42:43 AM Ignore Hilsgal Report Abuse Did anybody actually expect to get the money back??
Bussman Champion Author Dallas Posts:3,862 Points:991,680 Joined:Nov 2008	Message Posted: Sep 7, 2010 9:18:36 AM Ignore Bussman Report Abuse Repost.
dacofa Champion Author Nevada Posts:3,211 Points:693,485 Joined:Jan 2010	Message Posted: Sep 7, 2010 9:16:17 AM Ignore dacofa Report Abuse Anytime Obama and his BS is involved we, the taxpayers, lose big time.
WyrelessMike All-Star Author Little Rock Posts:991 Points:426,570 Joined:Aug 2008	Message Posted: Sep 7, 2010 9:05:55 AM Ignore WyrelessMike Report Abuse Aren't taxpayer "losers" no matter what the government spends their money on? I mean, many will be too young to recall this, but it was once public knowledge that the government would regularly spend $30,000 on a hammer, and the president typically spend $50 on haircuts, etc. Now, based on predicted results of the initial round of stock sales, Reuters reports taxpayers are losers, even though the story admits that sales over later years may yield the kind of money that would allow, and this is my favorite part, "taxpayers to be fully paid back for saving the world's largest automaker." Now, I'd like hear to a reply from the taxpayers that really believe the government intends to "fully pay back" the money used to save GM to each taxpayer... cue crickets Nice try, Reuters, on your attempt to remove the government from the equation. [Edited by: WyrelessMike at 9/7/2010 10:07:05 AM EST]
derKraut Champion Author Ontario Posts:1,669 Points:848,795 Joined:Dec 2008	Message Posted: Sep 7, 2010 8:35:44 AM Ignore derKraut Report Abuse What a surprise! It is always the taxpayer that takes it up the yingyang.
ncomet1 Champion Author Michigan Posts:1,289 Points:408,780 Joined:Nov 2009	Message Posted: Sep 7, 2010 8:20:25 AM Ignore ncomet1 Report Abuse When you only sell 15-20 Billion dollars worth of stock, its hard to pay back $50 Billion.
bluehawk43 All-Star Author Arkansas Posts:679 Points:503,890 Joined:May 2009	Message Posted: Sep 7, 2010 7:49:55 AM Ignore bluehawk43 Report Abuse If they say it often enough maybe it won't happen.
GingoutMD Champion Author Maryland Posts:2,302 Points:473,680 Joined:Jan 2010	Message Posted: Sep 7, 2010 7:49:34 AM Ignore GingoutMD Report Abuse Anyone who thought that the taxpayer was going to make all their money back when GM went public simply does not understand much about the stock market and the current value of GM.
Martinman Champion Author Mississippi Posts:11,756 Points:1,658,215 Joined:Sep 2005	Message Posted: Sep 7, 2010 7:42:38 AM Ignore Martinman Report Abuse So why keep REPOSTing the same "nutty" old news?
bar1035 Champion Author Charlotte Posts:5,813 Points:831,995 Joined:Aug 2006	Message Posted: Sep 7, 2010 7:20:43 AM Ignore bar1035 Report Abuse This is just as useful as a lot of other nutty articles Martinman? The taxpayers are always the losers.
Martinman Champion Author Mississippi Posts:11,756 Points:1,658,215 Joined:Sep 2005	Message Posted: Sep 7, 2010 7:07:26 AM Ignore Martinman Report Abuse REPOST ! Taxpayers likely to face initial loss on GM IPO (Reuters; posted 04 Sep 10) Please use the "Not Newsworthy" link on the prior page (All Recent News), to notify the moderators of reposts and spamming such as this. [Edited by: Martinman at 9/7/2010 8:15:32 AM EST]