James Pethokoukis

GM IPO gives little reason for celebration

November 18, 2010

Now you too can directly own a piece of Government Motors:

General Motors Co shares gained as much as 9 percent on Thursday as investors bet that the top U.S. automaker can make a lasting recovery after repaying a big chunk of last year’s government bailout with funds raised in a landmark initial public offering. The start of trading in GM shares represents one of the final steps in a blockbuster initial public offering negotiated by the Obama administration that raised $20.1 billion after pricing its common and preferred shares.

A ‘what if’ on GM, Hummer and China

June 3, 2009

Daniel Ikenson of the Cato Institute makes a great point on the Hummer deal:

The willingness of this Chinese company to purchase Hummer serves as a stark reminder of what could have been. Had George W. Bush not allocated TARP money to GM last December, in circumvention of Congress’s rejection of a bailout, then GM likely would have filed for bankruptcy on January 1. At that point, there would likely have been plenty of offers from foreign and domestic concerns for individual assets to spin off or for equity stakes in the New GM. There would have been plant closures, dealership terminations, and jobs losses, as there is under the nationalization plan anyway. But taxpayers wouldn’t be on the hook for $50+ billion, a sum that is much more likely to grow larger than it is to be repaid. It is also a sum that will serve as the rationalization for further government interventions on GM’s behalf.

A liberal dream plan for GM

June 1, 2009

MIchael Moore makes the following minor and humble suggestions to the White House about what it should do with its 60 percent stake in General Motors. Some excerpts:

Can Free Marketeers Embrace Obama’s GM?

June 1, 2009
Certainly most of the free market/conservative/libertarian types I chat with are in a tizzy about the General Motors bankruptcy — or, to put it more accurately, the 60 percent government ownership of GM once it emerges from its quickie bankruptcy. Government Motors. But is there a free market case for the Obama auto bailout? Here is what I was able to gin up:

Happy ending unlikely for GM

May 28, 2009

My pal Pete Davis over at Capital Gains and Games gives a  great 96-word GM sitrep: