Who Owns The “New GM”

Illustration for article titled Who Owns The “New GM”

As part of GM's Chapter 11 filing today, you the taxpayer now own 60% of General Motors. Congratulations. But who owns the rest of the "New GM?"

The US Treasury will initially own 60% of the "New GM," while the Canadian and Ontario governments together have 12% in exchange for $9.5 billion in financing. The United Auto Workers' health care trust fund owns 17.5% and the remaining 10% is owned by unsecured creditors in the form of bondholders, they're also being given warranties for a further 15%. We realize that this only adds up to 99.5%, we're assuming some rounding knocked off that last half percent. [source: Detroit News]

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DISCUSSION

Here are some graphs to give some perspective to all the BS being slung around here.

Here is my argument: GM was just working a giant ponzi scheme. The cars were shit, but getting better. No car - or even series of car - contributed to the demise. The housing bubble did it, and the subsequent massive credit crunch.

Take a look at the financial losses from the real estate markets compared to EVERYTHING ELSE

This one should explain itself:

Get it????????????

GMAC's destruction led to GM's destruction.

All of those Jalop RedStaters out there that keep ripping Obama and saying "gummit motors". STFU. Please.

If GM were to fold, it would take suppliers and a whole food chain out, not to mention lose a boatload of engineering talent to other countries. You think smart guys, good car engineers are going to suddenly become PLUMBERS? No.

They are going to leave the US. Emigration works as well as immigration. Brain drain, like England saw in the 1970s and 80s.

We would lose the talent and infrastructure to build cars to stave off the end of oil, which is coming in about 10-15 years.

Think of all of this as a game of Civilization. You don't want to lose manufacturing totally, you need it as a building block to get to the next tech tree level. You guys should be able to handle that.

Obama is going to turn GM back over to private equity stakeholders just as soon as possible. If most of you understood how thin the line is between public and private, you'd think with TARP most of you would get it. All I hear is "OH NOES, it's TEH SOCIALIZM"!

Stick to talking wheel weights and TPMS. Stay out of things you don't understand.