General Motors -- I mean --- Government Motors announced that it intends to buy back 200 million shares GM common stock held by the U.S. Department of the Treasury for $5.5 billion, or $27.50 per share. Back in the day Uncle Sam was hoping on a break-even price of $54 per share.
The good news is that the Government will divest itself of all stocks in a little bit more than a year. Hopefully the stock price for those remaining 300 million shares will fetch a better price, since GM is on the road to "recovery."
The always-readable Zero Hedge chimes in this morning.
Assuming a price in the $27.50 range, this implies a nearly 50% loss on the government's breakeven price of $54. So much for the "profit" spin. One hopes all those Union votes were well worth the now booked $40+ billion cost to all taxpayers.
Yes those union members made out well, after all. And that now affordable stock price saved the most important job of one man, Barack Obama. Thank you Michigan and Ohio. That thank you came in the form of a shout out by the President against right-to-work laws recently. He's the gift to labor that won't stop giving.