William Thien

Getting Some Traction On Selling GM “Government Motors” to The Highest Bidder

Posted on: December 23, 2012

It would seem that my lobbying of my Federal Congressman and Federal Senator regarding the divestiture of GM has had some effect. I have been blogging recently that if the country wants to solve the looming fiscal crisis that it should divest itself of General Motors (GM), that the US Government should sell one of its prized possessions, you know much like the America public has to do when it needs cash quickly, usually selling something precious at a loss. I have made those observations available to Congressman Sensenbrenner(R) WI, and Senator Kohl(D) WI, as well as a number of others.

The good news is that GM will be buying back a substantial portion of its stock (the government will still own quite a bit), and the government will have recovered close to $30 Billion of the $50 Billion in bailout funds GM received. For the government to recover the full bailout amount GM shares would have to be sold at just under $70.00 a share. If Treasury sold back its remaining shares at current market value, it would come up with a $12 Billion loss. To many of you that may sound familiar, selling something you cherish at a loss to make ends meet. I think it is good that the government ‘gets’ an idea what the American public has to endure. Washington is so out of touch.

For reasons other than the fact that Detroit is full of large iconic car companies, I lobbied for the bailout of GM and the auto industry. But it has been quite some time, now. I think the time has passed for any continued bailout of GM which has substantial amounts of cash on hand that can be used to buy back its shares. And I don’t think it is right to be paying in any way for that nice shiny new car in perpetuity that the guy in the lane next to me is driving when I have car payments of my own.

Clearly the time is now for the government to divest itself of GM. With the looming fiscal cliff and a national debt sure to bring EU type austerity measures across the Atlantic, it is time for the government to get its house in order. I’d say in fact, there isn’t that much more time before the people will do it for them.

Copyright © William Thien 2012

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