Nathan Sass

G(overnment) Motors IPO – Investments for Progressives Only

In Backroom Deals, Barack Obama, Economics, George Soros, GM, Politics on November 17, 2010 at 5:00 AM

Congratulations America.  You have given GM almost $50 BILLION to save the “too big to fail” automaker (not even including the money given to GMAC/Ally Bank).  Now they are ready to issue an IPO (Initial Public Offering) to raise more capital and continue on the road to ‘profitability’.

There’s just one little, tiny, almost microscopic, catch.  You aren’t allowed to take part in the IPO unless you are one of those few loaded people the Democrats usually accuse the Republicans of favoring.  You know, people like super right wing George Soros and ultra righties Bill Gates and Steve Jobs.

I guess the “public” part of IPO was impacted by that “change” thing we were all promised in 2008.  Apparently unless you are a rich leftist with some serious ties to the current administration, you aren’t part of the public anymore.  I think they are referring to us as “the masses” now and there is no such thing as an Initial The Masses Offering.

Just to make this perfectly clear, the masses ‘loaned’ GM (actually the UAW, but who’s counting?) $50 Billion to keep the doors open.  They have paid the masses back about $7 Billion.  And don’t forget that the US Government (supposedly you but really King Barack I) owns 61% of the (not so) private company.

So when it comes time to potentially make a little bit of profit as a result of your loans to GM, well, you can just forget it.  See, those profits are reserved for people like George Soros.  After all, he has spent billions of his own money supporting Progressives like Obama, and his checking account is getting a little bit low. 

Now it’s time for Obama to help Soros replenish his coffers a bit as a thank you for all the help Soros et. al. have given Obama and his compatriots.

Many Americans had serious problems with the bailout of the UAW, um – I mean General Motors, and took their business elsewhere as a result.  Anecdotal evidence in my own life indicates that there were more than a few life long GM customers who made the switch to Ford specifically because Ford took no tax payer money or bailouts.  Interestingly, they are the healthiest American automaker today, but I’m sure that’s just a coincidence.

Which leads me to an intriguing thought.  Will this action by the Obama Administration, oops – I mean GM management, result in a similar backlash in the investment community?  The article linked above indicates that there are already more than a few investors who are vowing publicly to never ever own GM stock again.

Should this become a more wide spread phenomenon, those who buy the IPO may just see their shares go straight into the toilet and lose a ton of money.

I don’t usually root for an American company to fail, not even Apple, but in this case I will make an exception.  I hope that the shares of GM that hit The Street and make there way into the portfolios of the already über wealthy Progressives rapidly drop to a value just south of $0.01 per share.

Imagine seeing people like Soros feel the sting of massive losses.  I know it won’t come close to bankrupting them, but it would sure feel good to know that they finally get a small taste of the pain 99% of the investing public felt in 2008.

I know it’s a juvenile fantasy, but I am giving myself permission to indulge it just this once.

Rick Santelli started the Tea Party movement in earnest with one pronouncement on CNBC.  Maybe we can call on him, or another prominent investor/analyst, to do the same and declare an investor boycott of GM and Ally Bank shares.

Wouldn’t that be just ducky?

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