Will probably be good for all of the involuntary shareholders, the citizens of the United States.
GM announced they will have an IPO that will reduce the stake of the U.S. to less than half the value of the current company. The new shareholders will then stand in the place of the old shareholders, who saw their equity in the company evaporate in its forced restructuring.
It’s way too early to know what type of market reaction the IPO will create. What should be known right now is that the old GM and companies like it are now a relic of a bygone era. If this is merely an attempt to resurrect the old GM, then why would anyone believe the next 50 years will be kinder to them than the past 50 years have been?
Everyone knows someone who bought a stock believing that the company would always be there. Here in Washington you would be hard-pressed to find too many people who didn’t think Fannie Mae would be printing money forever.
If you are thinking about placing a bet on GM’s future, please ask yourself if you are really that much smarter (or luckier) than the millions of people who bet on it before you.
Half the population
Will probably be good for all of the involuntary shareholders, the citizens of the...