Yeah, bailing out the auto industry was a really bad idea.

[WilliamPitt]

Or something.

G.M. Shares Surge on Market Debut
BY MICHAEL J. DE LA MERCED AND BILL VLASIC

Shares of General Motors opened for trading on Thursday at $35 and surged nearly 8 percent in the first few minutes on the New York Stock Exchange.

The shares were priced at $33 each on Wednesday evening in the largest initial public offering in United States history.

The offering, which raised $23.1 billion, is bigger and more ambitious than had once seemed possible. But the recently bankrupt automaker will have to build on its revival for the government to recoup its entire $50 billion investment and validate the Obama administration’s decision to keep G.M. from collapsing.

To break even, the Treasury Department will need to sell its remaining 500 million shares at an average price of $53 each in the months and years to come. And while the administration may retain great influence over the company, it may not be able to keep stoking the enthusiasm investors have shown for G.M. stock in recent days.

Still, now that General Motors has shown that it can be profitable, a complete exit by the government could happen even within the next two years. With the offering, G.M. is shedding its ties to the government faster than expected, cutting the Treasury Department’s ownership stake to 26 percent, from nearly 61 percent.

The rest: http://dealbook.nytimes.com/2010/11/17/g-m-prices-its-shares-at-33-in-return-to-stock-market/?hp

[Romulox]

1. If this was such an economic home run, why were the conditions put on Detroit so much harsher

than those put on Wall Street?

Why the bankruptcy, broken union contracts, etc. etc. etc. at the same time that Wall Street was being "made whole" to the tune of hundreds of billions (if not trillions) of taxpayer dollars? That's what leaves a bad taste in my mouth about this. :hi:

[msongs]

2. we bail out the welfare military with half the US budget EVERY year nt

[jaxx]

3. It's been a real success.

Kind of amazing after the pissing and moaning that has gone on since the take over. It was a wise decision. One of many.

[Historic NY]

4. People still blame the gov't for stock & bond losses.........

I just they wanted Obama to save them when it was up to the bankruptcy court. The stock was worthless in the end and the pieces sold off or shutters also became worthless. It was a good move. I expect to see them settling in full in the future.

[bluedeminredstate]

5. Where were the teabaggers

when the U.S. government bailed out the airline industry after 9/11/01? They never paid the government back a dime! The taxpayer assumed all the liability for the airlines' incompetence in keeping terrorists from getting on their planes. Congress immunized them! Yet not a word from these "patriots" who are sooooo worried about the virulent socialism infecting our country from the bailout of Detroit. A bailout which happened to save about one million jobs and which, BTW, was structured to be paid back!

[deaniac21]

6. Great for GM but not so great for taxpayers

http://fund-money-market.com/money/will-us-lose-money-on-gmipo.html

[Historic NY]

10. GM IPO stock opened at $32 not the twenties & its up 7%.........

I'm pulling for my (US) car company.

http://www.crainsdetroit.com/article/20101118/FREE/101119838/gm-ipo-a-boon-for-auto-suppliers-economy-in-southeast-michigan

[spanone]

7. Obama has received no credit whatsoever for saving gm

[leftstreet]

8. GM workers protest low-wage small-car plant

GM workers protest low-wage small-car plant

DETROIT | Sat Oct 16, 2010 5:57pm EDT

(Reuters) - About 100 General Motors Co workers and retirees picketed outside the United Auto Workers union's headquarters on Saturday to protest plans to build a new small car with low-wage workers.

The protest came just days after some veteran UAW workers at the Orion plant near Detroit were told they would have to accept wages that are about half what they had been making and as GM rushes to complete preparations for a stock offering.

GM plans to employ just over 1,300 workers to build a new subcompact car for its Chevrolet brand and the Buick Verano compact at the now-shuttered Orion Township assembly plant when production begins in August.

Rick Milkie, a nine-year Orion plant veteran, said the UAW's concession allowing GM to hire an increasing number of workers at wages of about $14 per hour was an unacceptable concession by a union credited with helping to create an industrial middle class in the years after World War Two.
http://www.reuters.com/article/idUSTRE69F1EU20101016

oops

[Sen. Walter Sobchak]

9. If they aren't back to exactly where they started from in five years...

I will accept it was a good idea, other than driving down wages everything else appears to be status quo.

Hiring Daniel Akerson, a walking stereotype of the aloof transient executive seems inexcusable.

Steadfastly refusing to bring their competitive small cars to the US market, the Aveo is a piece of shit no matter where it is made.

The Volt seems like it is being setup to fail, a ruse to say that there is no demand for electric cars when few people buy a ridiculously niche and costly compact.