Posted: November 19th, 2010 by Militant Libertarian
Well, Government Motors (GM) has gone public, opening their sorry company up for public purchase through an initial public offering (IPO). This means that private investors can now buy into the government-owned company (owned by the U.S. government to the tune of 60%). This was a big deal in the automotive media and was supposedly proof that GM had now become, once again, a giant carmaking conglomerate of some consequence in the business world.
Meanwhile, with the IPO came the government selling off some of its shares in Government Motors. They, of course, sold it before it boomed, getting the initial offering price of $33/share for their shares. They sold about half of them and are now only 33% stakeholders in the company.
Of course, that means they’re still the largest shareholder in the company. How much of a stake they have is a little hokey, depending on who you ask. It could be as little as 26%.
Obama, who is effectively CEO of the U.S., says that the government has “recovered more than my administration has invested in GM.” Once again, of course, the remaining boondoggle ownership is blamed on G.W. This is a sort of recurring theme in the Obama Administration. The shares the government sold, obviously could not have been Bush’s instead of Obama’s because, well, Bush wasn’t the guy making the announcement. Was he? Don’t be surprised if the second edition of the former Pres’ book doesn’t counter Obama’s assertion of exactly which President’s shares were sold.
Another theme coming from the White House has been “jobs,” which are on a lot of Americans’ minds (at least about 9% of us by last unemployment numbers). Never failing to take advantage of a microphone to tout his excellency’s hard work in restoring American jobs – even as his wife (she of many manservants) spends our tax dollars like they’re an unlimited, renewable resource – Obama quickly pointed out the (supposed) “million” jobs saved by the GM bailout.
That’s a number that, like most numbers given by government to “prove” something, can’t be verified by anyone since he basically made it up. Al Gore style.
To sum it all up, Government Motors is now available for purchase, in limited shares, on Wall Street so that you too can own shares in a company that, technically, you already own 33% of via your tax dollars. Remember, though, that purchase saved a million American jobs and was thanks to President Bush, since Obama has sold off his shares in GM, which apparently weren’t worth keeping.
Or something like that.