GM's IPO

Regarding the triumphalism attending GM's IPO, let this post serve as a friendly reminder that GM still owes the U.S. government $43 billion; that its financing arm still owes $14.6 billion; and that its sick friend Chrysler still owes $8.2 billion. Before we start declaring GM an American success story, let's keep in mind that the government lost $9 billion of taxpayers' original investment on today's partial stock sale. GM still has major problems stemming from its pension obligations. Yes, auto sales have rebounded, but that is thanks to a surge in light-truck sales, which are not the kind of
Read More ...