10 thoughts on “General Motors work under bad conditions

  1. Taxpayers likely to face initial loss on GM IPO-sources

    http://uk.reuters.com/article/idUKN0315109920100903

    A decision to price the initial GM shares below the cost to taxpayers would follow the usual Wall Street practice of giving the first investors in a new stock a discount, but it could also help allay investor concern in the face of the slow recovery of the U.S. economy and flat auto sales.

    The U.S. government pumped $49.5 billion worth of taxpayer money into the automaker and took nearly 61 percent of its common stock.

    But IPOs typically price at a discount of 10 percent to 15 percent to theoretical fair value to reward investors for taking a risk on a new issue and pave the way for future stock floats. In tough market conditions, that discount can be even larger.

    Another of the sources said the discount could be as much as 20 percent on the GM IPO compared with the U.S. Treasury’s break-even point.

    This is meant to sound reasonably innocuous, how ever this is a pretty big deal.

    We own 61% of GM which would mean that once again, we the US taxpayer have the most to lose in this equation. But lets get a full perspective here first…

    In mid-August, GM began hyping the idea that they would be issuing more public shares in an attempt to pay back some of the $49.5 Billion that we let them barrow. Of course this sounds good until one realizes that the vast majority of people that are expected to invest are the very same taxpayers that already gave them money in the first place (i.e. TARP)

    Now, we are being told that our company (remember we presently own 61% of GM), is going to release discounted shares to preferred investment firms ONLY, which in turn will offer the pre-IPO to their best clients, i.e. wealthiest investors.

    This process is called consolidation of wealth, and one of the symptoms is the artificial devaluation of assets which creates a “buyers’ market” for the wealthiest. Sadly this has happened many times before and was articulated clearly in a letter written to James Monroe on January 1, 1815 by Thomas Jefferson:

    “If the American People ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers occupied. The issuing power of money should be taken from the bankers and restored to Congress and the people to whom it belongs.

    I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies. We are completely saddled and bridled, and the bank is so firmly mounted on us that we must go where they ill guide.

    The dominion which the banking institutions have obtained over the minds of our citizens…must be broken, or it will break us.”

    What was does not have to dictate what will be

  2. Bus driver crashed after ‘little sleep’

    UNITED STATES: A bus crash that left 15 people dead last year was probably caused by a driver suffering from sleep deprivation and insufficient bus company safety oversight, the National Transportation Safety Board declared on Tuesday.

    The board said driver Ophadell Williams had almost no sleep — except for naps on the bus — in the three days leading up to the March 12 2011 accident on the way back to New York from a Connecticut gambling trip.

    Mr Williams, who worked mostly overnight shifts, has pleaded not guilty in New York to charges of manslaughter and criminally negligent homicide.

    http://www.morningstaronline.co.uk/news/content/view/full/119876

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