Should The Treasury Cut Their Losses And Rid Of GM Stock?

Part of the GM bailout included the US Government (on behalf of the tax-payers) purchasing a ton of GM shares WAAAAAY above market value (okay, GM was bankrupt at the time, so when I say "market value" I mean well above the last trading price before bankruptcy, and the first trading price of the New GM's IPO).

Knowing that, it doesn't take a rocket scientist to understand that GM is unlikely to reach a share price within our lifetime in which the Government (AKA tax-payers) can make their money back by selling these over-priced shares at market value. And there isn't anybody stupid enough, not even GM, who will buy those shares at the price the Government (AKA tax-payers) paid for them.

So sadly, GM's massive losses have in effect been transferred to the share-holders of those stocks that have a book value that by far exceeds their current market value, or their expected market value in the foreseeable future, miracles excepted. Investors don't buy, sell, or hold, based on miracles, so it makes sense to dump the stock before GM goes bankrupt again, at which time they'll be worthless, or close to it.

I would keep them until we break even or atleast until the election is over. No need to give HATERS an I told you so commie!

Don't worry. If the feds sell the stocks at a loss, then those who opposed the sale can wait until GM stock reaches a market price when the Government *could* have broken even, and then dish out you "I told you so's." According to analysts, this is unlikely to happen in our lifetime. Think penny stocks becoming Apple, and you get a better idea of what The Feds got us into.