‘Geithner has long wanted to exit GM soon, wanting to get out of the business of owning a large stake in an automaker. Some GM officials worried that after Geithner leaves in January, reaching a deal could have taken months, but Treasury officials disagreed.
Before the November election, the Obama administration had showed no interest in disposing of its 26.5 percent stake in GM — or 500 million shares — it had acquired in 2009 as part of GM’s bankruptcy restructuring.’
Over four years ago, when GM stock was selling at $2 a share and the debt-holders had been wiped out, this blog put up the video below. Here’s a brief 2:00 min explanation by Bill Ackman of Pershing Square on why the GM bailout was likely a bad idea:
Certain people benefitted more than they would have otherwise, of course, like the UAW and it’s fair to say the Obama administration which needed the votes in Ohio to get reelected, but others, including investors who risked their own money, and the taxpayers, most of whom didn’t have a say beyond their votes, lost money. Obama, as politicians are wont to do, pretty clearly waited until after the election to quietly make the sale.
ZeroHedge has more here, and has been following the process for awhile.
My guess is Obama will try and maneuver away from the coming tax and regulatory fallout upon ordinary taxpayers, small businesses, and consumers from Dodd-Frank and Obamacare as it all begins to rain down.
The money has to come from somewhere, and it’s coming from you and me, through inflation, higher taxes, higher prices with costs passed down to the consumer, for starters.
My non-economist two cents.
Addition: David Harsanyi at Reason has more. Non-union employees pensions got raided and taxpayers foot the bill, so that Obama and the UAW can maintain power. Cronyism on the taxpayer dime at its finest.