I’m sorry, but I just can’t help saying this: Congress has lost it’s mind. Exhibit 1: the automakers.
Ok, so GM needs a bailout of $18 billion. Should we loan them the money? Last time I checked the market price, GM was at $4.54. That puts it’s market cap at $2.76 billion. Why in the world is the government (taxpayer) going to lend them $18 billion, when we can just buy them for $2.76 billion?
Better yet, why doesn’t the government just loan a consortium of PE firms and banks the $2.76 billion to buy GM, thus saving the taxpayer over $15 billion? (Maybe GM won’t have any bidders at that $2.76 billion pricetag. If not, at what price? Aye, there’s the rub).
This bailout stuff makes no sense a’tall.If you enjoy the content at iBankCoin, please follow us on Twitter