Happy ending unlikely for GM
My pal Pete Davis over at Capital Gains and Games gives a great 96-word GM sitrep:
This is not going to come to a happy end for taxpayers for several reasons. First, the taxpayers will not get back all of $19.4 b. they’ve already “invested” in GM, nor all of $30 b. in loans they’re about to be saddled with. Second, auto parts firms will soon need additional funds as well. Third, the collateral damage to Ford and other companies making cars in the U.S. will not be small. Finally, despite Administration assurances that they will be “reluctant owners,” eager to sell, it will take a long time to extricate ourselves from this mess.