Wednesday, February 18, 2009

General Motors Asking for $51 per Share

General Motors (GM) may ask the Treasury Department for up to a total of $30 billion. Yet the stock only has 610.46 million shares outstanding. This works out to $51.53 per share. And the stock only trades for way less than $3 per share. What's wrong with this picture? Is my math wrong? Would you lend $30 million to someone with a $610 thousand home as collateral? Obviously, this is an apples to oranges comparison but it does give some perspective.

And why does Congress keep calling in the CEO's of banks and auto companies? Are these CEO's going to allow clawbacks of their own previous bonuses? Why doesn't the government bring in the Boards of Directors, especially the outside members of the Boards. They are supposed to be the ones in ultimate control of the companies.

And why is the government spending so much time, money, and energy on investigating steroids in baseball? Don't we have more important (financial) crises to deal with?


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