General Motors Is Headed For Bankruptcy -- Again

How many taxpayers funded businesses must fail before the public realizes something is wrong?  Bankruptcy and public funds cannot restore competitiveness, innovation, and creativity needed for international success.  These qualities exhibited by the likes of Willem Usselincx (Dutch West India Company), Bill Gates, Henry Ford, Steve Jobs, and Thomas Edison arise from the desire of great, private-sector entrepreneurs.

Headline:  General Motors Is Headed For Bankruptcy -- Again

President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.

Source:  forbes.com

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