The Treasury Department issued a new estimate last week, indicating losses on the bailout will be $23.6 billion, more than 65% higher than the previous estimate of $14.3 billion. Including payments made to auto industry suppliers, the total cost of the General Motors/Chrysler bailout is roughly $85 billion.*** GM's worth continues to fall. On Jan. 7, GM stock closed at $38.98 a share. By October, it had fallen below $20. It closed Friday below $22.
For taxpayers to break even on the GM portion of the bailout — about $50 billion of the $85 billion — General Motors stock [onwed by the US} needed to be sold at somewhere between $45 and $55 a share when the "new" GM went public in November 2010. But that price has never been reached. In fact, the stock has never found the $40 mark.
Correcting misconceptions about markets, economics, asset prices, derivatives, equities, debt and finance
Friday, November 18, 2011
Estimated Losses From Auto Bailout Raised 65 Percent
Posted By Milton Recht
From "Taxpayers Get Bigger Bill From GM, Chrysler Bailout" on Investor.com:
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