Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/5/2012 (3 years ago)

Catholic Online (

Unlikely the Obama administration will sell off GM stake before Election Day

General Motors shares fell to a new 2012 closing low of 19.57 this week. The stock hit 19 last December, the lowest since the car maker came public at $33 in November 2010 following its June 2009 bankruptcy.

The Volt hybrid was supposed to provide a green veneer to GM's entire lineup, much in the manner of what the Prius did for Toyota.

The Volt hybrid was supposed to provide a green veneer to GM's entire lineup, much in the manner of what the Prius did for Toyota.


By Catholic Online (NEWS CONSORTIUM)

Catholic Online (

7/5/2012 (3 years ago)

Published in Business & Economics

Keywords: GeneralMotors, Government Motors, tax breaks, stockmarket, Volt

LOS ANGELES, CA (Catholic Online) - Dubbed "Government Motors" by some, this would be bad news for those who invest in GM - but it's a much larger issue here. The Treasury still owns 26.5 percent of GM, or 500 million shares. Taxpayers are out $26.4 billion in direct aid. In essence, shares would have to hit $53 for the government to break even. GM stock is worth about $9.8 billion as of the beginning of this week, leaving taxpayers with a loss of $16.6 billion.

U.S. President Barack Obama let GM keep $45 billion in past losses to offset future profits, which are usually wiped out or slashed, along with debts, in bankruptcy. The White House essentially gifted $45 billion in write-offs to GM. So when GM earned a $7.6 billion profit in 2011, no taxes were paid. Including the $18 billion gift, the taxpayers' true loss climbs to nearly $35 billion.

It is highly unlikely that the Obama administration will sell off its GM stake before Election Day, forcing Obama to recognize actual losses, which would remind voters that the bailout was a massive transfer from taxpayers to unions.

Union workers made sacrifices in bankruptcy, but not nearly enough, as GM only narrowed the labor cost gap vs. what Japanese automakers pay their workers. Given that Toyota still enjoys a price advantage over similar GM vehicles, the U.S. auto giant needs a labor cost advantage, not near-parity.

The Volt hybrid was supposed to provide a green veneer to GM's entire lineup, much in the manner of what the Prius did for Toyota. The Volt instead has become a public relations disaster following fires and anemic sales that led to a temporary production halt earlier this year.

GM's market share and profits got an artificial boost in 2011 as Japan's earthquake and Thailand's massive floods wrecked havoc with supply chains for Toyota and other Japanese automakers. Toyota is now happily back on track and VW and Hyundai are both expanding in America.

Overall U.S. auto sales were strong to start the year, but that momentum has faded along with slowing economic growth and hiring. Falling gas prices also may reduce the incentive to replace aging cars and trucks with higher-mileage vehicles.



Pope Francis: end world hunger through 'Prayer and Action'

Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2015
That human trafficking, the modern form of slavery, may be eradicated.
Evangelization: That with a missionary spirit the Christian communities of Asia may announce the Gospel to those who are still awaiting it.


More Business & Economics

Three BILLION barrels of excess oil available now - but is this a good thing? Watch

Image of Inflated inventories and oil wealth has spread globally, from the United States to the developed economies of Europe, and now China, according to the agency.


With the price of gas comfortably lower than $3 a gallon at many gas pumps across the land, consumers are enjoying a price break. The reason behind this windfall is largely because there are now more than three billion barrels of excess oil in the world. This ... continue reading

HARD NEWS HEADED FOR EXTINCTION! Filters turning off certain information imperil journalism Watch

Image of Daily newspapers have gone from nearly 1,800 in 1945 to about 400.


Newspapers, along with print media in general is in rapid decline - while Internet news, groomed and curried for special interest groups is on the rise. The fallout is that hard news, presented objectively is in dire threat of virtual extinction. "Opinion ... continue reading

The 'WAR ON CHRISTMAS' continues as Starbucks' new seasonal cups spark public outrage Watch

Image of Starbucks is the center of a mass controversy when it decided to release plain red cups this holiday season instead of its traditional Christmas and general holiday-themed cups (Rozzieland blogs).


When coffee giant Starbucks released red cups in place of their traditionally holiday-themed cups this winter, Arizona-based evangelist Joshua Feuerstein cried bigotry. LOS ANGELES, CA (Catholic Online) - In a Facebook video rant, Feuerstein wrote, "I think in the age ... continue reading

Pretty much all you could ask for from the month of October - unemployment at five percent, new hires Watch

Image of The 271,000 jump in payroll was surprisingly robust, far better than the Labor Department expected last week.


"It was pretty much everything you could ask for in a jobs report," Michelle Meyer, deputy head of United States economics at Bank of America Merrill Lynch says. Unemployment was at five percent and there were significant job hires for the month of October. ... continue reading

Invest as a Catholic - without selling your soul! Watch

Image of

By Kevin Jones (CNA News)

For Catholics who want to invest in a retirement plan but hesitate for fear of unintentionally supporting causes contradicting their faith, a financial advisor group is now offering a new option. Washington D.C. (CNA) - "We'd like to see every Catholic organization ... continue reading

SOMETHING IS BREWING: Agreement could lead to biggest beer deal - and top five business deals EVER Watch

Image of The prevailing trend among younger beer drinkers is for smaller, more specialized labels from independent breweries. In response, bigger beer brands are struggling to hold on to their market share.


Something big is brewing in the world of brew. AB InBev or Budweiser is offering SABMiller shareholders $67.59 per share. The maker of Miller Lite, Pilsner Urquell and Peroni, this represents a premium of roughly 50 percent over the share price. The agreement, ... continue reading

Overworked Wall Street employees experience seizures, are hospitalized, and have died Watch

Image of John Hughes in Thomas' bedroom (Damon Winter).


Wall Street has always been a very demanding place to work and with recent work-related deaths, it seems that Wall Street must find a way to provide work-life balance to its employees.  NEW YORK CITY, NY (Catholic Online) - Thomas Hughes was a 29-year-old ... continue reading

7 ways to bring your family out of debt Watch

Image of


There are a lot of ways the improper handling of finances can jeopardize you and your family. The cost-of-living continues to get higher yet your income doesn't. How can you make ends meet? LOS ANGELES, CA (Catholic Online) - Fear not! You can regain control of your ... continue reading

3 easy ways to save money and pay off debt Watch

Image of


Work and play, earn and spend -It's the way the economy survives, but what about your survival? If you're having trouble saving money, don't have a dedicated savings account or just don't know how to stop spending, you may have a problem. LOS ANGELES, CA (Catholic ... continue reading

Is the stock market in trouble? Historical market turndowns following papal visits Watch

Image of Papal visits versus the stock market were reviewed.


As Pope Francis visits the United States, historical data of visits from his predecessors to the United States were linked to several market downturns in the US. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Pope Francis made his historical visit to the United ... continue reading

All Business & Economics News


Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, Isaiah 11:1-10
1 A shoot will spring from the stock of Jesse, a new shoot will grow from ... Read More

Psalm, Psalms 72:1, 7-8, 12-13, 17
1 [Of Solomon] God, endow the king with your own fair judgement, the son ... Read More

Gospel, Luke 10:21-24
21 Just at this time, filled with joy by the Holy Spirit, he said, 'I ... Read More

Saint of the Day

Saint of the Day for December 1st, 2015 Image

St. Eligius
December 1: Eligius (also known as Eloi) was born around 590 ... Read More