A Good Deal

The government did a good job with GM. Had the stock gone up 20% today it would have appeared like the taxpayers were stiffed. The modest rise allowed the buyers to make a small profit and the seller to exit at a fair price.

3 comments:

Anonymous said...

I don't think the American people buy into any of this 8% up or 20% IPO day. People are sick of this and they aren't as dumb as the gov't and bankers believe. There was a similar period in the late 1800's where the robber barons and bankers were massacred. What the robber barons did not forsee was that the people knew exactly what they were doing.

Anonymous said...

You are suggesting that GM could have added $5B in market cap during trade today??? NFW.

Tsachy Mishal said...

They were going to price it in the $27-$29 range. Had they done the deal there it would be up 20% now. They decided to raise the price at the last minute.