Weren't we told that we would get our money back from the "investment" of public funds in GM?
If a new General Motors emerges from bankruptcy as planned, U.S. financial aid for the company will expand to nearly $50 billion, but neither the government nor the company is forecasting how much of the public money will be repaid.It's sure to be a stretch. For the United States to fully recover its investment, the value of General Motors stock will have to reach levels it has never before attained.
The problem? For the government stake in the company to reach a value of $50 billion, stock prices will have to go higher than they reached in the best of times for the ailing auto maker. So not only has the government overpaid for the assets they acquired, but it paid a price that would have been excessive at the company's height.
In the business world, there is a requirement that a company uphold its fiduciary duty to the stockholders and not squander their money on bad investments. Failure to meet that duty cn result in firing, personal financial liability, and even jail time. What consequences will Obama and his team face for their failure to fulfill their fiduciary duty to the American taxpayer?
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