Government Motors On

After GM's  IPO, stockholders looked with great anxiety at the 32 percent the U.S. government still holds in General Motors. Allegedly, the U.S. government wanted to shed that share as quickly as possible, and someone dumping the stock does not make for rising stock prices. Now, GM is sending out smoke signals that a sale is far from imminent. GM's chief spokesman Selim Bingol wrote in a blog  that "the day will eventually come when the Treasury sells its GM stake. When is anybody's guess (we have no say in the matter)." In a perverse way, the GM stock had tanked before the U.S. government could dump it. The low stock price holds the government hostage. "At current stock prices," writes the Detroit News, "the Treasury would incur a loss of nearly $16 billion on its bailout of GM." The stock currently is 24 percent below its $33 IPO price. Says the DetN: "Given that a sale before the November presidential election would highlight the cost of the government's rescue of GM, officials say it is unlikely the government will sell any shares before then." from The Truth About Cars http://www.thetruthaboutcars.com

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